SGI meets 2Q estimates

2 min read

Silicon Graphics Inc. (NYSE: SGI) kept its word Monday, posting a second-quarter loss of $1 million, or a penny a share, on sales of $648 million.

Its shares closed up 1/4 to 11 1/4 ahead of the earnings report.

Last week, SGI told analysts that it expected to almost break even in the quarter rather than 13 cents a share as most analysts had predicted.

First Call consensus originally pegged SGI for a loss of 13 cents a share but revised that estimate to a penny a share following the SGI announcement.

Last quarter, it lost $20 million, or 11 cents a share.

Including a $16 million reduction in previously estimated restructuring costs, SGI earned $9 million, or 5 cents a share in the quarter.

"I'm pleased with our results," said CEO Bob Bishop in a prepared release. "I believe they reflect the stabilization we've achieved in our customer base and our field organization in the last quarter, setting the stage for future growth."

Bishop said he expects SGI to roll out new products and services later this year that will target the home market for technical computing.

"I remain quite confident that we can return SGI to long term growth and profitability," he said in the release.

SGI shares moved up to a 52-week high of 20 7/8 last January before slumping to a low of 6 7/8 in November.

Fifteen of the 16 analysts tracking the stock maintain a "hold" recommendation.

First Call consensus expects SGI to lose 29 cents a share in the fiscal year.