Silicon Graphics Inc is planning for 30% revenue and earnings growth this year by attempting to stay nimble and ahead of the competition in the chaotic computer industry, chairman Ed McCracken told Reuter. We believe the computer industry is in a state of chaos and will stay that way forever, he said, but we’re faster on our feet and more focused than our competition. Now a $1,100m-a-year company, Silicon Graphics says demand for its workstations is strong in the automotive and aerospace sectors as well as in Hollywood where, as reported, its computers have been used to create special effects in such films as Jurassic Park and The Terminator. McCracken believes the company is gaining market share in all its market segments by being able to move quickly with new products and software enhancements, and says the company’s management style and corporate culture is structured to accept constant change, reflecting the turbulence in the industry. We don’t do long term planning, said McCracken. In fact, we try to stamp it out. Research and development is expected to increase this year with the aim of keeping expenditures at about 12% of revenues. In fiscal 1993, research and development totalled $136.6m. One of the challenges this year will be ramping production for the new low-cost Indy workstation, which starts at $5,000. McCracken expects Indy to become its biggest seller over the new few years and to take the company into new markets, putting it up again Apple Computer Inc in the graphical desktop market for the first time.
