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SILICON GRAPHICS REPORTS A 31-PERCENT INCREASE IN REVENUES; COMPANY ATTRIBUTES GROWTH TO MIPS RISC VALUE ADDED PRODUCT STRATEGY

 MOUNTAIN VIEW, Calif., Oct. 21 /PRNewswire/ -- Silicon Graphics Inc. (NYSE: SGI) today reported revenues totaling $302 million for its first fiscal quarter ending Sept. 30, 1993, a 31 percent increase over the comparable quarter a year earlier. Net income was $26 million for the quarter, compared with $13 million in the same period for the prior fiscal year.
 Earnings per share were $0.34 per share versus $0.19 per share for the same quarter in the prior fiscal year. Edward R. McCracken, Silicon Graphics' president and CEO, commented, "Our continued momentum in the marketplace drove our 31 percent revenue growth over the prior year's summer quarter. In particular, our North American business was extremely robust.
 "There was strong demand across the entire range of our MIPS RISC product line. Our binary compatible product line which spans from Indy(TM), a digital medial workstation to our POWER Challenge(TM) supercomputers is the best in the industry from a price/performance and value added standpoint," McCracken concluded.
 Silicon Graphics Inc. is the leading manufacturer of visual computing systems. The company delivers interactive three-dimensional graphics, digital media and multiprocessing technologies to technical, sce?ntific 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.
 SILICON GRAPHICS, INC.
 CONSOLIDATED STATEMENT OF INCOME
 (Unaudited, in thousands except per share amounts)
 Three Months Ended
 Sept. 30, Sept. 30, June 30,
 1993 1992 1993
 Product and other revenues $265,000 $202,774 $284,937
 Service revenues 36,636 28,321 34,332
 Total revenues 301,636 231,095 319,269
 Costs and expenses:
 Cost of product and other
 revenues 126,466 90,650 130,888
 Cost of service revenues 19,672 18,395 20,669
 Research and development 39,025 29,982 38,288
 Selling, general and
 administrative 83,499 70,930 84,265
 Total costs and expenses 268,662 209,957 274,110
 Operating Income 32,974 21,138 45,159
 Interest Income (expense) and
 other, net 512 (2,459) 1,116
 Income before taxes 33,486 18,679 46,275
 Provision for Income taxes 7,746 5,604 13,882
 Net Income $ 25,740 $ 13,075 $ 32,393
 Net Income per common share $ 0.34 $ 0.19 $ 0.43
 Common shares and common share
 equivalents used in the cal-
 culation of net income per
 common share 75,570 70,290 74,788
 Note: Prior periods have been restated to reflect the adoption of FASB Statement No. 109, "Accounting for Income Taxes". The effect is to reduce net income and earnings per share by $1.1 million and $0.01 for the three months ended Sept. 30, 1992, and $2.8 million and $0.04 for the three months ended June 30, 1993, reflecting elimination of the extraordinary item for the benefit of tax loss carryforwards.
 SILICON GRAPHICS INC.
 CONSOLIDATED BALANCE SHEET
 (In thousands)
 Sept. 30, Sept. 30, June 30,
 1993 1992 1993
 ( UNAUDITED )
 ASSETS
 Current assets:
 Cash and cash equivalents $ 101,389 $ 116,796 $ 142,668
 Short-term investments 6,510 32,306 12,142
 Accounts receivable, net 315,361 250,776 317,470
 Inventories 190,555 132,626 156,165
 Prepaid expenses and other
 current assets 72,078 67,377 70,359
 Total current assets 685,893 599,881 698,804
 Long-term financial instruments 83,431 -- 42,670
 Property and equipment 310,694 282,691 288,523
 Accumulated depreciation and
 amortization (150,335) (145,060) (136,783)
 Net property and equipment 160,359 137,631 151,740
 Other assets 121,337 127,612 119,813
 Total $1,051,020 $ 865,124 $1,013,027
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable and other
 accrued liabilities $ 206,637 $ 166,769 $ 210,804
 Long-term debt due within
 one year 7,942 9,076 7,048
 Accrued merger expenses 13,159 18,271 12,140
 Deferred revenue 50,459 36,510 50,446
 Total current liabilities 278,197 230,626 280,438
 Deferred revenue and other accrued expenses,
 long-term 4,654 8,281 5,102
 Long-term debt due after one year 29,340 31,205 25,989
 Accrued merger expenses,
 long-term 10,872 23,716 13,802
 Stockholders' equity:
 Preferred stock 33,996 33,996 ?33,996
 Common stock 67 62 66
 Additional paid-in capital 610,237 547,126 601,994
 Retained earnings (accumulated
 deficit) 81,891 (17,411) 56,414
 Accumulated translation
 adjustment 1,766 7,523 (4,774)
 Total stockholders' equity 727,957 571,296 687,696
 Total $1,051,020 $ 865,124 $1,013,027
 Note: Prior periods have been restated to reflect the adoption of FASB Statement No. 109, "Accounting for Income Taxes". The effect at Sept. 30, 1992, is to increase current assets by $36.9 million, increase other assets by $50.3 million, increase current liabilities by $22.9 million and increase shareholders' equity by $64.3 million. The effect at June 30, 1993 is to increase current assets by $22.5 million, increase other assets by $44.4 million, increase current liabilities by $12.9 million and increase shareholders' equity by $54.0 million.
 -0- 10/21/93
 /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. ST: California IN: CPR SU: ERN

CJ-SG -- SJ009 -- 5407 10/21/93 16:03 EDT
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Date:Oct 21, 1993
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