SGI tops reduced 1Q estimates as sales slip

SGI managed to top analysts' reduced estimates in its first quarter Monday but still lost $49 million, or 26 cents a share, on sales of $426 million.

First Call Corp. consensus expected the computer workstation maker to lose 46 cents a share in the quarter.

SGI (NYSE: SGI) shares inched up 13 cents to $4.50 ahead of the earnings report.

In the year-ago quarter, SGI lost $225 million, or $1.24 a share, on sales of $514 million.

Earlier this quarter, SGI warned that component shortages would result in lower-than-expected sales in the quarter.

First Call Corp. consensus originally predicted it would lose 14 cents a share in the quarter.

"We continue to be encouraged by the positive response our products are receiving from customers, in particular their outstanding benchmark performance, and the order momentum we are experiencing," said CEO Bob Bishop in a prepared release. "While there is no short-term resolution to this industry-wide component shortage, we are making every effort to lessen its impact on our business."

SGI shares hit a 52-week high of $13.50 in March before falling to a low of $3.06 earlier this month.

All 10 analysts following the stock rate it a "hold."