MILPITAS, CA — (Marketwired) — 04/29/15 — SGI (NASDAQ: SGI), a global leader in high performance solutions for compute, data analytics, and data management, today reported financial results for its fiscal third quarter 2015 ended March 27, 2015.
Total revenue for the fiscal third quarter was $119 million, a decrease of 14% from $138 million in the previous quarter and a decrease of 5% from $124 million in the third fiscal quarter of 2014.
GAAP net loss for the fiscal third quarter was $9 million, or $(0.25) per share, compared with a GAAP net loss of $10 million, or $(0.30) per share, in the prior quarter, and a GAAP net loss of $22 million, or $(0.64) per share, in the third quarter of fiscal 2014. Non-GAAP net loss for the quarter was $3.4 million, or $(0.10) per share, compared with a non-GAAP net income of $0.1 million, or breakeven per diluted share, in the prior quarter and a non-GAAP net loss of $7 million, or $(0.22) per share, in the year-ago period.
“Demand for our HPC solutions remained robust this quarter as bookings increased significantly, driven by multiple large program wins across the company, including our Federal business and international operations,” said Jorge Titinger, President and CEO of SGI. “In addition, we received certification for our UV solution for SAP HANA for up to 16-sockets, which represents a significant milestone as we position to capture share in the In-Memory market.”
“Looking at the fiscal year, it now appears likely that revenue for one of our large DoD projects will be delayed one quarter, adding to what we believe will be a strong first half of fiscal 2016. Overall, we remain encouraged by our progress in diversifying our HPC business, entering the In-Memory market with our UV products and continuing our focus on operational excellence,” continued Titinger.
SGI–s Federal business continues to strengthen with significant successes across the intelligence community, the Department of Defense and multiple civilian agencies. SGI–s HPC and HPDA capabilities are providing mission focused capability and speeding time to insight and discovery. SGI has been awarded several large programs and contract vehicles with multi-year funding available for data analytics solutions, shared memory and cluster products.
The fourth largest oil and gas company in the world, TOTAL S.A., selected SGI to upgrade its supercomputer “Pangea,” with a new ICE X system to increase Pangea with an additional 4.4 petaflops of compute power. With this upgrade, Pangea will continue to be the largest commercial supercomputer in the world.
The UK Atomic Weapons Establishment (AWE) selected SGI–s record-breaking ICE XA systems for its new supercomputer to support complex scientific modeling at high resolution and faster processing speeds for research and development. This will be one of the first global customer installations of SGI ICE XA, taking energy efficiency and flexible packaging to new levels.
The Japan Atomic Energy Agency awarded SGI a contract for its fully integrated, 2.4 petaflop, 35 rack ICE-X supercomputer and storage system for its comprehensive R&D institute dedicated to nuclear energy. This system will be the largest Intel Xeon-based supercomputer in Japan.
The company expects total revenue for its fiscal fourth quarter ending June 26, 2015 to be in the range of $130 million to $145 million.
The company expects non-GAAP net loss for the fiscal fourth quarter is expected to be in the range of $4 to $8 million, or $(0.12) to $(0.24) per share after excluding approximately $5 million of recurring adjustments for stock-based compensation expense, restructuring and severance costs, intangibles amortization and other items. GAAP net loss for the fiscal fourth quarter to be in the range of $9 to $13 million, or $(0.26) to $(0.38) per share.
The company expects total revenue for its fiscal year ending June 26, 2015 to be in the range of $500 million to $515 million.
Management will host a conference call and a live webcast of the earnings conference call will be available on the Investor Relations section of the Company–s website at investors.sgi.com beginning at 1:30 p.m. PT (4:30 p.m. ET). A replay of the webcast will be available approximately two hours after the conclusion of the call and will remain available until the next earnings call.
The public can also listen to the 1:30 p.m. PT (4:30 p.m. ET) earnings conference call by dialing (888) 463-5422 (toll-free) or (970) 315-0484 (international). An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available for five days and can be accessed by dialing (855) 859-2056 (toll-free) or (404) 537-3406 (international) and entering the confirmation code: 24094588.
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The statements made in this press release regarding projected financial results, including SGI–s guidance and outlook, and certain statements made in the earnings conference call, are forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Actual results could differ materially from those described by these statements due to a number of factors, including, but not limited to the following: substantial sales to U.S. government entities, which are subject to the government–s budgetary constraints; customer concentration risks; fluctuations in the buying patterns and sizes of customer orders from one quarter to the next; increased competition causing SGI to sell products or services at lower margins than expected; lengthy acceptance cycles of SGI–s products by certain customers and their effects on SGI–s revenue and liquidity; development or product delivery delays, delays in obtaining necessary components from suppliers or delays in customer acceptance once products are delivered; the addition of new customers or loss of existing customers; unexpected changes in the price for, and the availability of, components from SGI–s suppliers; SGI–s ability to enhance its products with new and better designs and functionality; actions taken by competitors, such as new product announcements or introductions or changes in pricing; market acceptance of newer products; and risks related to SGI–s term loan. Some of these risks and uncertainties are described in more detail in SGI–s most recent Form 10-Q, Form 10-K and other filings with the Securities and Exchange Commission (“SEC”) and are available at the SEC–s web site at . Forward-looking statements are made based on information available to the company on the date of this press release. The company assumes no obligation to update the information in this press release.
This press release and the related earnings conference call include financial measures that are not determined in accordance with U.S. generally accepted accounting principles (“GAAP”), including non-GAAP gross margin, non-GAAP net income (loss) and non-GAAP basic and diluted net income (loss) per share. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and management exercises judgment in determining which items should be excluded in the calculation of non-GAAP measures. In addition, these non-GAAP measures may be different from non-GAAP measures used by other companies. While we believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP, we believe that non-GAAP measures are valuable in evaluating the company–s operating performance and analyzing our business operations. Management may exclude the following items from one or more of non-GAAP measures: (1) share-based compensation; (2) amortization and impairment of intangible assets; (3) restructuring and severance charges; (4) excess and obsolete inventory write-offs; (5) gains or losses on investments; and (6) other non-recurring costs. Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between GAAP and non-GAAP financial results is provided in this press release. The adjustments made should not be construed as an inference that all such adjustments or costs are unusual, infrequent or non-recurring. Investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in this release and SGI–s SEC filings.
For a full reconciliation of historical non-GAAP measures referenced in this press release or today–s presentation to the comparable measures under GAAP, please refer to the company–s press releases on its website at .
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SGI Investor Relations
Annie Leschin
(415) 775-1788
Ben Liao
(669) 900-8090
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