SGI Announces Q3 Revenue
Created 04/27/2001 - 00:00
files/pictures/picture-23.jpgSGI on April 20, 2001, announced their third consecutive quarter of increased revenue growth and improved operating performance. For the quarter ending March 31, 2001, the company posted revenue of $510 million, compared with $487 million in the quarter ended December 31, 2000, which represents a 5% increase. The company reported a net operating loss of $47 million for the quarter, excluding charges, compared with a net operating loss of $93 million in the previous quarter. The company also reported a net loss for the quarter of $141 million, which included a non-cash write-off of $83 million for a venture investment. The company plans to cut around 1,000 regular, temporary and contractor positions, or about 15% of its global workforce, during the current quarter, which ends June 31, 2001. The actions are expected to help the company cut operating expenses by 20%. Consequently, the company expects to take a restructuring charge in the June quarter of approximately $60 -- $80 million. According to Bob Bishop, SGIs chairman and CEO, "SGI's mission to be the world leader in high performance computing and visualization solutions for technical and creative users is resonating with our customers. However, the economic uncertainty is clearly having a noticeable impact on the timing of our customers' technology spending." Bishop also commented, "While it's difficult to predict the scope and duration of this economic uncertainty, we believe it is prudent to take appropriate action [the layoffs]. Consequently, we are committing to an operating model that will enable us to break-even at the current revenue level, as we enter the next fiscal year."