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SILICON GRAPHICS REPORTS ITS FIRST BILLION DOLLAR YEAR ALONG WITH RECORD EARNINGS; THE COMPANY DELIVERS ON POST-MERGER OBJECTIVE

 MOUNTAIN VIEW, Calif., July 27 /PRNewswire/ -- Silicon Graphics Inc. (NYSE: SGI) today reported that for its fiscal year ended June 30, 1993, the company's consolidated revenues were $1.1 billion, a 26 percent increase over the comparable period. Net income for fiscal 1993 was $95 million, or $1.30 per common share after extraordinary item. A year ago the company reported a net loss of $118 million, or ($2.19) per common share for the prior fiscal year due primarily to charges related to the merger with MIPS Computer Systems which was effective June 29, 1992.
 For the fourth quarter ended June 30, 1993, net revenues were $319 million, compared to $240 million in the year ago quarter, a 33 percent increase. Net income for the quarter was $35 million, or $0.47 per common share.
 Edward R. McCracken, Silicon Graphics' president and chief executive officer, commented, "I would characterize Fiscal 1993 as one of the most challenging in the history of the company. We emerged as a significant computer systems supplier, absorbed and integrated the MIPS operation, delivered a new CPU architecture, and introduced several new products that span the entire spectrum of our offerings, all without the often associated transition disruption. To be able to do all of these things in any year is rewarding, but to accomplish them while reporting the kind of financial results we have is especially gratifying.
 "Our productivity per employee improved dramatically, and was at an all-time high of $341,000 per employee during the fourth quarter. With solid momentum, a strong position in the marketplace, and healthy financials, we look forward to fiscal 1994."
 At the end of fiscal 1993, the company's balance sheet reflected stockholders' equity of $634 million. The company's cash and investments balance at June 30, 1993 was $197 million. Total debt of $33 million represented 5 percent of total capital of the company.
 The company also noted that Indy(TM), its new $5,000 personal workstation introduced in mid-July, has met with an ethusiastic response from current and potential customers. Indy, along with the new thrust in the digital media marketplace will open new doors for the company for the rest of the decade.
 Silicon Graphics Inc. is the leading manufacturer of high- performance visual computing systems. The company delivers interactive three-dimensional graphics, digital media and multiprocessing supercomputing technologies to technical, scientific and creative professionals. Its subsidiary, MIPS Technologies Inc., designs and licenses the industry's leading RISC processor technology for the computer systems and embedded control markets. Silicon Graphics has offices worldwide and headquarters in Mountain View.
 NOTE: Silicon Graphics is a registered trademark and Indy is a trademark of Silicon Graphics Inc.
 SILICON GRAPHICS INC.
 Consolidated Statement of Income
 (In thousands, except per-share amounts)
 Three Months Ended
 June 30, June 30, Mar. 31,
 1993 1992 1993
 -- (unaudited) --
 Product and other revenues $ 284,937 $ 213,120 $ 239,429
 Service revenues 34,332 26,714 31,237
 Total revenues 319,269 239,834 270,666
 Costs and expenses:
 Cost of product and other
 revenues 130,888 102,053 111,082
 Cost of service revenues 20,669 18,446 18,794
 Research and development 38,288 37,688 34,931
 Selling, general and
 administrative 84,265 81,956 76,456
 Merger-related expenses --- 110,000 ---
 Restructuring costs --- --- ---
 Total costs and expenses 274,110 350,143 241,263
 Operating income (loss) 45,159 (110,309) 29,403
 Interest and other, net 1,116 (1,422) (484)
 Income (loss) before taxes
 and extraordinary item 46,275 (111,731) 28,919
 Provision (credit) for
 income taxes 13,882 (2,789) 8,676
 Net income (loss) before
 extraordinary item 32,393 (108,942) 20,243
 Extraordinary item-benefit
 from tax loss carryforwards 2,776 --- 1,735
 Net income (loss) 35,169 (108,942) 21,978
 Preferred stock dividend
 requirement --- 263 ---
 Net income (loss) available
 to common stockholders $ 35,169 $(109,205) $ 21,978
 Income (loss) per common share
 before extraordinary item $ 0.43 $ (1.88) $ 0.28
 Net income (loss) per common
 share $ 0.47 $ (1.88) $ 0.30
 Common shares and common share
 equivalents used in the
 calculation of net income
 (loss) per common share 74,788 57,986 73,357
 Twelve Months Ended
 June 30, June 30,
 1993 1992
 -- (audited) --
 Product and other revenues $ 967,710 $ 774,911
 Service revenues 123,490 91,682
 Total revenues 1,091,200 866,593
 Costs and expenses:
 Cost of product and other
 revenues 441,540 361,157
 Cost of service revenues 77,172 64,383
 Research and development 136,641 127,905
 Selling, general and
 administrative 310,761 288,302
 Merger-related expenses --- 110,000
 Restructuring costs --- 23,416
 Total costs and expenses 966,114 975,163
 Operating income (loss) 125,086 (108,570)
 Interest and other, net 187 5,968
 Income (loss) before taxes
 and extraordinary item 125,273 (102,602)
 Provision (credit) for
 income taxes 37,582 15,830
 Net income (loss) before
 extraordinary item 87,691 (118,432)
 Extraordinary item-benefit
 from tax loss carryforwards 7,516 ---
 Net income (loss) 95,207 (118,432)
 Preferred stock dividend
 requirement --- 5,231
 Net income (loss) available
 to common stockholders $ 95,207 $ (123,663)
 Income (loss) per common share
 before extraordinary item $ 1.20 $ (2.19)
 Net income (loss) per common share $ 1.30 $ (2.19)
 Common shares and common share
 equivalents used in the
 calculation of net income
 (loss) per common share 73,066 56,472
 SILICON GRAPHICS INC.
 Consolidated Balance Sheet
 (In thousands)
 June 30 June 30 Mar. 31
 1993 1992 1992
 (audited) (audited) (unaudited)
 ASSETS
 Current assets:
 Cash and cash equivalents $ 142,668 $ 154,485 $ 105,364
 Short-term investments 12,142 28,680 74,301
 Accounts reveivable, net 317,470 239,895 264,141
 Inventories 156,165 123,862 139,541
 Prepaid expenses and other
 current assets 47,886 31,460 31,130
 Total current assets 676,331 578,382 614,477
 Long-term financial instruments 42,670 --- 10,199
 Property and equipment 288,523 252,359 281,749
 Accumulated depreciation
 and amortization (136,783) (136,730) (147,181)
 Net property and equipment 151,740 115,629 134,568
 Other assets 75,366 64,052 75,233
 Total $ 946,107 $ 758,063 $ 834,477
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 92,020 $ 56,292 $ 62,127
 Accrued compenstion 33,543 26,920 32,211
 Income taxes payable 26,297 5,305 15,650
 Other accrued liabilities 46,026 42,917 48,194
 Long-term debt due
 within one year 7,048 8,352 7,046
 Accrued merger expenses 12,140 43,125 18,890
 Deferred revenue 50,446 34,345 43,993
 Total current liabilities 267,520 217,256 228,111
 Deferred revenue and accrued
 expenses, long-term 5,102 8,709 4,511
 Long-term debt due after
 one year 25,989 27,295 25,285
 Accrued merger expenses,
 long-term 13,802 25,300 14,263
 Stockholders' equity:
 Preferred stock 33,996 33,996 33,996
 Common stock 66 62 65
 Additonal paid-in capital 587,653 524,269 551,919
 Retained earnings
 (accumulated deficit) 16,753 (77,404) (18,150)
 Accumulated translation
 ajustment (4,774) (1,420) (5,523)
 Total stockholders' equity 633,694 479,503 562,307
 Total $ 946,107 $ 758,063 $ 834,477
 -0- 7/27/93
 /CONTACT: media, Jill Grossman, manager of public relations,


415-390-1516; or investors, Marilyn Lattin, director of investor relations, 415-390-5070, both of Silicon Graphics/
 (SGI)


CO: Silicon Graphics Inc.; MIPS Technologies Inc. ST: California IN: CPR SU: ERN

TM-LH -- SJ002 -- 6386 07/27/93 16:04 EDT
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Date:Jul 27, 1993
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