MIPS operation to be separated from SGI

MIPS operation to be separated from SGI
Tom Foremski
Sources close to Silicon Graphics (SGI) say that the workstation firm is near to announcing the spin off of its successful MIPS microprocessor division as SGI warns of sharply lower financial results.
Under the leadership of its recently appointed CEO Richard Belluzo, SGI will spin-off MIPS in order to focus on its core business and use the money to help boost its fortunes in workstation and supercomputer markets.
SGI will retain the part of MIPS that designs its high end microprocessors but will sell off the rest, capitalising on MIPS position as the leading microprocessor in the fast growing embedded system market. More than 48 million MIPS microprocessors were shipped last year.
SGI warned on Friday that its third quarter fiscal revenues will be about $700m, down from $909m for the same period last year and will result in a “significant loss.”

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