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"We Need to Accelerate the Turnaround," Says SGI CEO

SGI Reports Its Fourth Quarter and Fiscal Year 2005 Results

"Our fourth quarter showed sequential revenue and bookings growth, and the lowest operating expenses for the fiscal year," said SGI's Chairman and CEO Bob Bishop (pictured), as SGI last week  announced results for its fourth fiscal quarter and fiscal year ended June 24, 2005.

"Nevertheless, we need to accelerate the turnaround and strengthen our financial position going forward," he added.

Revenue for the fourth quarter was $172 million, in line with the preliminary results announced July 7, 2005. Gross margin was 36.7% compared with 34.5% in the third quarter. SGI's fourth-quarter operating loss was $16 million, compared with an operating loss of $45 million in the third quarter. Net income, including the net gain from the sale of a portion of the Company's interest in SGI Japan, was $8 million or $0.02 per share on a fully diluted basis, compared with a net loss of $45 million or $0.17 per share in the third quarter.

Revenue for fiscal 2005 was $730 million. The net loss was $76 million or $0.29 per share for the fiscal year.

SGI has retained the turnaround firm of Alix Partners LLC to advise it in further reducing expenses, increasing revenue and improving liquidity.

The company expects to announce significant restructuring actions later this quarter, and is actively pursuing financing alternatives, including amending or replacing its asset-based credit facility to increase borrowing availability.

As of June 24, 2005, unrestricted cash, cash equivalents and marketable investments were $64 million compared with $84 million at March 25, 2005.

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Most Recent Comments
mystran 08/07/05 08:31:31 AM EDT

Microsoft's best product ever is the Win32 API. It's somewhat sad to see that they seem to be trying to replace it with something worse. But as long as it lasts, it's pretty much the developer's dream (the actual implementation might not be).

mystran 08/07/05 08:31:28 AM EDT

Microsoft's best product ever is the Win32 API. It's somewhat sad to see that they seem to be trying to replace it with something worse. But as long as it lasts, it's pretty much the developer's dream (the actual implementation might not be).

SGIman 08/07/05 08:28:33 AM EDT

SGI is vital in the defense arena for this nation.