SGI posts loss as tough year looks likely

SGI posts loss as tough year looks likely
Tom Foremski
Silicon Graphics (SGI) reported a loss of $153m for its fiscal third quarter results, as it transitions to a new business strategy which calls for it to phase out its proprietary MIPS based systems.
Revenues were 22 per cent lower, at $708m, compared with the same quarter last year. SGI said that the loss included significant charges of $114m for restructuring and discontinuing slow selling products.
SGI plans to offer high-end workstation based on Intel microprocessors and the Microsoft Windows NT operating system.
“SGI faces a tough year,” points out industry analyst Andrew Allison, editor of Inside the Computer Industry. “Their NT products won’t be out till the third quarter, which means that some customers will delay buying new systems.”

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