Silicon Graphics (SGI) has recorded its first billion dollar quarter, as it posted results for the financial year ended 30 June.
Profit for Q4 stood at $102.4 million on a $1.2 billion turnover, an increase of 19 per cent from $977.4 million in Q2 1996. In the same quarter last year, SGI made a loss of $48.7 million. For the full year, profit was $78.6 million, down 31.7 per cent from $115 million in the previous year, on turnover that was up 25.4 per cent at $3.7 billion from $2.9 billion in 1996.
This represents a leap in performance for the company following a poor show last year, when it took a $130 million hit following the acquisition of Cray Research in April (PC Dealer, 7 August 1996).
The firms took a lower pre-tax hit this quarter of $6 million related to the merger, compared with $120 million last quarter. Over the year, pre-tax merger charges were $53 million against $121 million in fiscal 1996.
SGI said strong demand for its newer products in Europe, particularly within the Cad/Cam market, has helped the financial turnaround. ?There has been great acceptance of all products, particularly in the UK, from workstations to Cray machines,? said Chris Calvert, SGI UK marketing director.
He also cited unspecified UK installations of Cray supercomputers ?worth tens of millions of pounds?, and multi-million pound workstation contracts with the likes of Ford and Jaguar.
SGI has also divulged details of its forthcoming Mips R12000 Risc processor, due to roll out soon in the US. Volume production of 0.25 micron chips is to commence in mid 1998.
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