Profits Down for SGI

Silicon Graphics, Inc. has reported negative first quarter results for the 1999 fiscal year. The company announced a net loss of $44 million, or $0.24 per share, compared with a net loss of $56 million in the same quarter a year ago. "Reporting a loss is never satisfying, but I am very encouraged with the progress demonstrated in this quarter's results," said Richard Belluzzo, CEO and chairman of SGI. Operating expenses were down approximately $40 million from the previous quarter at $335 million while revenues were also down at $616 million compared with $768 million in the same year-ago period. While the losses were smaller than predicted, SGI has said that it will take some time to return to profitability.