UPDATE - SILICON GRAPHICS
GOOD EARNINGS REPORT
Silicon Graphics (SGI)
Last night Silicon Graphics announced results for its second
fiscal quarter, which ended December 27, 2002. The company's
results exceeded expectations and showed the benefits of
the restructuring efforts employed during the past six months.
For the December quarter, revenues were $263 million (higher
than the expected $250 million) and showed a loss of $0.08
per share which also was better than the expected $0.11-$0.12
per share loss. Included in the December quarter results
was a $0.03 per share charge for restructuring.
We are pleased with the results, particularly the rise
in gross profit margins to 43% from 40%. Additionally, the
company announced that there is a very strong interest in
its newly announced Linux based products.
The December quarterly results further assured us that
Silicon Graphics is an undervalued situation and we feel
confident that the stock will reach our $3-$5 target price.
Stock Traders Press Management
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