SGI Makes Pact with Paragraph

Silicon Graphics (SGI) has bought 3D Internet developer Paragraph International as the high-end manufacturer embarks on a restructure of its Web divisions.

The purchase formed the centrepiece of a major rejig of Silicon Graphics? Web business. The Paragraph business will be integrated into its recently formed Cosmo Software business unit, while its Webforce systems unit will join the recently formed Computer Systems organisation.

The restructure is part of SGI?s company-wide reorganisation aimed at streamlining operations with its core businesses and aligning key resources to focus on growth markets and exploit different opportunities. Chairman Ed McCracken said the Cosmo software business had been formed to attack the ?high-growth market? at the intersection of 3D, visual computing and the internet.

The changes underpin Silicon Graphics? Second Web initiative which aims to ?provide rich interactive content across existing internet bandwidth using PCs, network computers and television-based devices?.

McCracken added: ?The internet computing revolution is creating new opportunities for high-growth businesses.?

Paragraph, a Russian software company, is a leading developer of virtual reality modelling language software. According to Craig Churchill, Silicon Graphics? marketing manager for Web products, Paragraph will have its product set integrated into that of Cosmo in preparation for the first complete software product line for the Second Web. The Paragraph brand name will be retained.

Last month, SGI saw its profit drop by 80 per cent to $105 million and turnover increase 34 per cent to $909 million for Q3, ended 31 March.