Silicon Graphics announces Q2 loss

Silicon Graphics News
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Revenue for the second quarter was $82.8 million, compared to $92.8 million in the previous quarter and $90.1 million in the second quarter of the prior year. The company’s net loss for the quarter was $49.2 million, or $4.24 per share, versus a net loss of $33.7 million or $2.91 per share last quarter and $42.2 million or $3.78 per share in the second quarter of the prior year.

Three interesting things came out of the call:

  1. SGI have reached an agreement with existing creditors, who’s debts were supposed to start being repaid in December, to postpone this for 2 years. Obviously this will have a positive effect on cash flow.
  2. There was another round of layoffs (restructuring, external promotions, reduction in force – call it what you will) at the end of December, so the financial hit for that comes in this quarter
  3. Despite receiving another NASDAQ delisting notice (see Deja Vu – Silicon Graphics to be delisted from NASDAQ), given the tough times all business is facing, the NASDAQ has relaxed it’s rules and SGI are no longer in danger of being delisted (again)

Read the full Silicon Graphics financial results release at http://www.sgi.com/company_info/newsroom/press_releases/2009/february/results.html

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