Silicon Graphics' stock falls on profit outlook
Article Abstract:
Silicon Graphics announced that earnings for the 3rd qtr FY 1995 will be lower than analysts had predicted and below 1994 earnings, sending shares in the company plunging 16%. The stock closed at $23.25 on Jan 2, 1996, down $4.375, and at times traded at $22, a new 52-week low which compares unfavorably with the high of $45.625 achieved on Jul 13, 1995. The company anticipates that for the fiscal 3rd qtr 1995, net income will reach 30 cents per share on revenues of $675 million, compared to the 34 cents or $550 million in revenues earned for 3rd qtr FY 1994. Analysts were expecting a 1995 return of 42 cents per share. The company attributes the lower earnings to slower-than-anticipated sales in Europe and North America. In North America, US government purchases dwindled in response to uncertain budgets, and OEM sales slowed. Analysts attribute the problem in part to Silicon's introduction of new products and the addition of a new sales staff.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Silicon Graphics projects loss and big revenue drop: promises a new strategy to renew growth
Article Abstract:
Silicon Graphics said it projected a significant loss, and a 23% drop in revenue, for the 3rd qtr 1998. The company attributed the anticipated loss on revenue of about $700 million to sagging demand for its workstations and supercomputers. Securities analysts, who earlier had lowered their expectations to a break-even performance, were surprised by the announcement. Estimates now have been downgraded to a loss of 38 cents a share, according to First Call. Silicon Graphics reported 3rd qtr 1997 earnings of $10.5 million, or 6 cents a share, on revenue of $909.4 million. The struggling company also said it would soon introduce a new growth strategy that is expected to streamline operations. One of the moves would entail spinning off its MIPS microprocessor subsidiary to shareholders.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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At Silicon Graphics, a surprise loss; Wall St. unhappy 5th quarter in row
Article Abstract:
Silicon Graphics (SGI) reported a $22 million loss for its 1st qtr 1996 ended Sep 30, surprising analysts who expected the company to generate higher profits. SGI attributes the loss to product transition issues and special charges. The company's loss represents the fifth consecutive quarter in which SGI has not met Wall Street's expectations. The company also attributes its financial problems to lackluster sales and a defective chip recall. SGI reported revenues of $776 million for the quarter. Prior to charges, the company's 1st qtr 1996 operating profit was 7 cents a share, or $18 million. According to J.P. Morgan analyst Daniel Kunstler, SGI damaged itself by leaking new product details to customers, who waited to buy until the new products were available.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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