Silicon Graphics Inc didn’t even manage to break even in its second quarter. After warning that revenue would be way down (CI No 3,072), and that it expected to just make the break even point, SGI reported a net loss of $13m after $14m charges relating to the effects of writing up inventory at the time of the merger with Cray Research Inc, compared with a profit of $52m last time. Revenue was $825m, down 8% on the $899m it did last time on a pro forma basis, which includes the revenue from the Cray acquisition. At the half way mark SGI reported a loss of $35m against a profit of $111m after charges on revenue of $1.6bn, up 26% on $1.2bn. SGI shares were down $2.50 on the day at $26.00.
