Could SGI be taken private?

Silicon Graphics News

An interesting article has popped up on The Register by Timothy Morgan, where he argues that the tech stock slide produced by the ongoing credit crisis has provided a perfect time for large, established – and exposed – technology companies to take themselves private.

The usual R&D heavy suspects are discussed – Sun, Cray – and Silicon Graphics.

Silicon Graphics, once a high-flying Unix workstation and supercomputer maker, should also think about going private. The company’s shares trade on the small cap portion of the NASDAQ exchange, and it has a market capitalization of $101m as we go to press. In the first six months of 2008, SGI posted sales of $172.9m but booked losses of $74.9m. The company had just under $40m in cash as the June quarter closed.

It could be possible, especially with continued strong government contracts and continued interest from large investors.

What do you think?

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