News Release (2005)Full Document 

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News Release

 

FOR IMMEDIATE RELEASE

 

SGI REPORTS FIRST QUARTER FINANCIAL RESULTS

    

MOUNTAIN VIEW, Calif. (October 25, 2005)—Silicon Graphics (NYSE: SGI) today announced results for its first fiscal quarter which ended September 30, 2005.

 

Revenue for the first quarter fiscal year 2006 was $170 million, gross margin was 37.8% and the operating loss was $26 million. For comparison, in the first quarter FY05, revenue was $175 million, gross margin was 35.9% and the operating loss was $26 million. The first quarter fiscal year 2006 net loss was $32 million or $0.12 per share, compared with a net loss of $28 million or $0.11 per share one year ago.

 

GAAP operating expenses for the first fiscal quarter were $90 million compared with $89 million in the same quarter last year. Non-GAAP operating expenses were $83 million in the first quarter compared with $86 million the same quarter last year excluding restructuring charges of $7 million and $3 million, respectively.

 

“We achieved several important goals in the first quarter,” said Bob Bishop, chairman and chief executive officer. “We grew revenue from core products year over year, exceeded our margin targets, secured new financing and are on-track with our restructuring plans. We still have work to do, but we are making progress.”

 

Unrestricted cash, cash equivalents and marketable investments on September 30, 2005 were $77 million as compared with $64 million at the end of fiscal 2005.

 

Separately, SGI today announced that it has completed a new asset based credit facility with Wells Fargo Foothill, Inc. and Ableco Finance LLC that will provide availability of up to $100 million. This agreement replaces the previous facility which provided availability of up to $50 million. For more details, see today’s related release “SGI Completes Increased $100 Million Credit Facility.”

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