CNET News.com: “Disappointing” revenues depress SGI earnings

“The company, which builds servers and high-end graphics
workstations and is shifting its product line to Linux, reported a
net loss of $18 million, or 10 cents a share, compared with a net
loss of $40 million, or 21 cents a share, the year before. Analysts
surveyed by First Call expected a loss of 7 cents per share for the
most recent quarter.”

“SGI is in a difficult position, with delayed products and
competitors eager to steal away its business, said Sarang
Ghatpande, an analyst with D.H. Brown Associates. In addition, SGI
is having a harder time convincing software writers to stay with
the company. “They’re not sure SGI will stay in the business for
the long run,” Ghatpande said.”

Bishop promised that new products to be introduced in the
next few months “will fuel long-term growth and profitability.”
Those products include a next-generation version of the company’s
high-end server, the SN-1, as well as new workstations and Linux
, Bishop said.”

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