SGID Numbers Not Liked By Investors, Stock Crushed.

Joined Today: 0

« Previous | All Messages | SGID Message Board Home | recommend post | Ignore Poster

Message #2
From: Stock News Bot
Date: May 8, 2006 12:23:43 PM

SGID Numbers Not Liked By Investors, Stock Crushed.

SGI Reports Preliminary Third Quarter Financial Results Silicon Graphics (OTC Bulletin Board: SGID message board, news, dd, quote/a>) today announced updated preliminary results for its third fiscal quarter which ended March 31, 2006. The financial information included in this release is preliminary in that it does not reflect any potential adjustments that may be required to our interim condensed consolidated financial statements as of and for the three and nine months ended March 31, 2006, following the completion of an asset impairment evaluation that must be performed in order for those financial statements to be stated in accordance with U.S. generally accepted accounting principles. Revenue for the three months ended March 31, 2006 was $108 million, in line with the preliminary results announced April 25, 2006. For comparison, revenue was $144 million in the prior quarter and $159 million in the same quarter one year ago. On a GAAP basis, net loss for the three months ended March 31, 2006 was $43 million or $0.16 per share, compared to a net loss of $45 million or $0.17 per share in the same quarter one year ago. Gross margin for the third quarter fiscal year 2006 was 36%, compared to 42% in the prior quarter and 35% in the same quarter one year ago. Operating expenses for the third fiscal quarter were $82 million compared with $89 million in the prior quarter and $100 million one year ago. Unrestricted cash, cash equivalents and marketable investments on March 31, 2006 were $55 million compared with $66 million on December 30, 2005 and $84 million on March 25, 2005. SGI has received a limited forbearance under its asset-based credit agreement in light of not meeting the EBITDA covenant in that agreement. In conjunction with the forbearance, SGI has paid down the amount drawn under the term loan by $20 million using $10 million from unrestricted cash and $10 million of previously restricted cash. SGI's Annual Meeting of Shareholders and its regularly scheduled quarterly conference call have been suspended until further notice. Forward-Looking Statements This news release contains forward-looking statements relating to future events or expected financial performance that involve risks and uncertainties. Factors that might cause such a difference include, but are not limited to: the effects of our chapter 11 filing; our ability to maintain adequate liquidity; and our ability to obtain and maintain normal terms with customers, suppliers and service providers. These and other risks are or will be detailed from time to time in SGI's periodic reports that are filed with the Securities and Exchange Commission, including the Form 8K's filed today in conjunction with this announcement (and other announcements) and SGI's quarterly report on Form 10-Q for the quarter ended December 30, 2005. Silicon Graphics is under no obligation to publicly update or revise any forward-looking statements, whether changes occur as a result of new information, future events or otherwise. SILICON GRAPHICS | The Source of Innovation and Discovery(TM) SGI, also known as Silicon Graphics, Inc., is a leader in high-performance computing. SGI helps customers solve their computing challenges, whether it's sharing images to aid in brain surgery, finding oil more efficiently, studying global climate, providing technologies for homeland security and defense, enabling the transition from analog to digital broadcasting, or helping enterprises manage large data. With offices worldwide, the company is headquartered in Mountain View, Calif., and can be found on the Web at www.sgi.com. NOTE: Silicon Graphics, SGI, the SGI cube and the SGI logo are registered trademarks and The Source of Innovation and Discovery is a trademark of Silicon Graphics, Inc., in the United States and/or other countries worldwide. All other trademarks mentioned herein are the property of their respective owners. MEDIA CONTACT Lisa Pistacchio pistacchio@sgi.com 650.933.5683 SGI PR HOTLINE 650.933.7777 SGI PR FACSIMILE 650.933.0283 SILICON GRAPHICS, INC. PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share amounts) Three Months Ended Nine Months Ended March 31, March 25, March 31, March 25, 2006 (1) 2005 2006 (1) 2005 (unaudited) (unaudited) Product and other revenue $44,882 $78,788 $195,935 $288,379 Product revenue from related party (2) 3,832 6,527 25,497 40,201 Service revenue 59,360 73,925 200,712 229,169 Total revenue 108,074 159,240 422,144 557,749 Costs and expenses: Cost of product and other revenue 36,376 58,992 150,619 214,557 Cost of service revenue 33,185 45,291 108,792 141,561 Research and development 20,838 24,342 65,458 72,471 Selling, general and administrative 50,236 61,025 167,729 186,612 Other operating expense, net (3) 10,986 14,294 28,285 22,659 Total costs and expenses 151,621 203,944 520,883 637,860 Operating loss (43,547) (44,704) (98,739) (80,111) Interest expense (4,824) (3,706) (12,327) (12,698) Interest and other income (expense), net 538 2,345 513 2,211 Loss from continuing operations before income taxes (47,833) (46,065) (110,553) (90,598) Income tax benefit (5,112) (1,564) (4,328) (7,019) Net loss from continuing operations (42,721) (44,501) (106,225) (83,579) Discontinued operations: Net loss from discontinued operations, net of tax -- -- -- (276) Net loss $(42,721) $(44,501) $(106,225) $(83,855) Net loss per common share - basic and diluted: Continuing operations $(0.16) $(0.17) $ (0.40) $(0.32) Discontinued operations -- -- -- (0.00) Net loss per common share- basic and diluted $(0.16) $(0.17) $(0.40) $(0.32) Shares used in the calculation of net loss per common share - basic and diluted 269,983 264,043 268,375 262,856 (1) The condensed consolidated statements of operations for the three and nine months ended March 31, 2006 is preliminary in that it does not reflect any potential adjustments that may be required following the completion of an asset impairment evaluation that must be performed in order for our interim condensed consolidated financial statements to be stated in accordance with U.S. generally accepted accounting principles. (2) Represents product sales to SGI Japan, a related party for which we own a 24% equity interest at March 31, 2006 and owned a 40% equity interest at March 25,2005. (3) Represents charges for estimated restructuring costs, related accretion expense, and asset impairments in each of the three- and nine- month periods ended March 31, 2006 and March 25, 2005. SILICON GRAPHICS, INC. PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) March 31, June 24, 2006 (2) 2005 (1) ASSETS (unaudited) Current assets: Cash and cash equivalents $54,257 $64,247 Short-term marketable investments 601 39 Short-term restricted investments 40,641 39,757 Accounts receivable, net 58,035 93,335 Inventories 71,911 75,662 Prepaid expenses and other current assets 38,067 43,431 Total current assets 263,512 316,471 Restricted investments 409 413 Net property and equipment 37,134 56,257 Other assets 68,362 79,004 $369,417 $452,145 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $57,782 $58,075 Accrued compensation 25,384 34,062 Income taxes payable 2,426 2,689 Other current liabilities 68,581 72,530 Current portion of long-term debt 38,293 1,820 Current portion of deferred revenue 104,887 98,305 Total current liabilities 297,353 267,481 Long-term debt 253,078 261,992 Long-term deferred revenue 48,458 36,188 Other liabilities 65,380 77,672 Total liabilities 664,269 643,333 Total stockholders' deficit (294,852) (191,188) $369,417 $452,145 (1) The condensed consolidated balance sheet at June 24, 2005 has been derived from the audited consolidated financial statements at that date. (2) The condensed consolidated balance sheet at March 31, 2006 is preliminary in that it does not reflect any potential adjustments that may be required following the completion of an asset impairment evaluation that must be performed in order for our interim condensed consolidated financial statements to be stated in accordance with U.S. generally accepted accounting principles.

« Previous | All Messages | SGID Message Board Home | Ignore Poster