SGI expects significant loss
In another disappointment, Silicon Graphics says its earnings and revenue for the quarter ending March 30 will be "significantly below" expectations.
SGI's stock closed today down 3/16 of a point to 13-15/16. It has traded as low as 10-15/16 and as high as 30-5/16 during the past 52 weeks.
SGI said it expects to incur a "significant loss" based on expected revenue of about $700 million.
Wall Street had expected a break-even quarter for SGI, according to First Call. For the comparable quarter a year earlier, SGI earned $11 million, or 6 cents per share, on sales of $909 million.
"Our disappointing third-quarter results reflect the continuation of
several trends that have affected Silicon Graphics over past several
quarters, including declines in the Unix workstation and super computer
business and marketing execution challenges in the server business,"
SGI chief executive Richard Belluzzo said in a statement.
"We will, over the next few weeks, unveil a strategy that we believe will position us for renewed growth through market focus."
This announcement marks another disappointing chapter in SGI's attempts to turn itself around.
Once praised for its technology know-how in helping to create hit movies such as "Jurassic Park," SGI has fallen on hard times.
SGI's stock has traded as low as 10-15/16 and as high as 30-5/16 in the past 52 weeks.
In January, SGI posted a second-quarter loss and flat revenue growth. It also named Belluzzo, a former Hewlett-Packard executive vice president, as CEO, replacing Ed McCracken.
In November, SGI announced that it would cut 850 jobs, most of them in the United States.