MILPITAS, CA — (Marketwired) — 08/05/15 — SGI (NASDAQ: SGI), a global leader in high performance solutions for compute, data analytics and data management, today reported financial results for its fourth quarter and fiscal year ended June 26, 2015. The data in this release is presented on both a GAAP and non-GAAP basis and a reconciliation of GAAP to non-GAAP measures is included in the financial tables in this press release.
Total revenue for the fiscal fourth quarter was $153 million compared to $142 million in the fourth quarter of fiscal 2014. GAAP net loss for the fiscal fourth quarter was $10 million, or $(0.28) per share compared with a net loss of $10 million, or $(0.30) per share in the fourth quarter of fiscal year 2014. Non-GAAP net loss for the fiscal fourth quarter was $4 million, or $(0.12) per share compared with a net loss of $0.5 million, or $(0.01) per share in the same quarter a year ago.
Total revenue for fiscal 2015 was $521 million compared with $530 million in fiscal 2014. GAAP net loss for fiscal 2015 was $39 million, or $(1.13) per share, compared with a net loss of $53 million, or $(1.54) per share, in fiscal 2014. Non-GAAP net loss was $13 million, or $(0.36) per share for fiscal 2015, compared with a net loss of $13 million, or $(0.39) per share, for fiscal 2014.
“We began fiscal 2016 with significantly higher bookings and backlog than last year. The building blocks of our growth strategy are in place as we continue to win large strategic deals in HPC and penetrate the enterprise market for data analytics with our single node in-memory solutions. With our focus on profitable revenue growth and cost management, we are committed to achieving non-GAAP profitability and positive cash generation in fiscal 2016,” said Jorge Titinger, President and CEO of SGI.
SGI is now SAP®-certified to run the SAP HANA® platform in controlled availability at 20-sockets, delivering up to 15 terabytes (TB) of in-memory computing capacity in a single node. This specialized offering enables enterprises to further unlock value from information in real-time, boost innovation, and lower IT costs.
Dell and SGI signed a significant partnership agreement that will broaden the availability of SGI–s industry-leading in-memory computing solution, the SGI® UV 300H compute servers for the SAP HANA® platform.
The Institute for Solid State Physics (ISSP) of the University of Tokyo has deployed our recently introduced SGI ICE XA system together with a number of UV systems as its next supercomputer. The performance of this solution, at 2.6 petaflops, is nearly 15 times more powerful than their previous system and is among the largest SGI systems in Japan.
PETRONAS, Malaysia–s largest oil and gas company, installed an SGI ICE X system incorporating graphic processing unit (GPU) accelerators to support its research and development capabilities in subsurface imaging.
The company currently expects revenue for fiscal year 2016 to be in the range of $600 to $625 million, representing year-over-year growth of 15% – 20%. While ranges could vary, the company currently anticipates first half revenue to be 45% to 50% of the full year. Non-GAAP gross margin for fiscal 2016 is expected to be between 26% and 27%. Total non-GAAP operating expenses for the year are expected to be flat to down 5% compared to fiscal 2015.
Based on this outlook, and after excluding approximately $17 million of adjustments, the company expects to be profitable on a non-GAAP basis in the range of $0.25 to $0.35 per share for fiscal 2016. On a GAAP basis, net loss is expected to be in the range of $(0.11) to $(0.21) per share for fiscal 2016. Earnings per share calculations for the fiscal year 2016 assume 36 million weighted average shares outstanding.
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 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: 80872796.
SGI is a global leader in high performance solutions for compute, data analytics and data management that enable customers to accelerate time to discovery, innovation, and profitability. Visit sgi.com (sgi.com/) for more information.
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The statements made in this press release regarding projected financial results, including SGI–s growth strategy, outlook regarding future profitability and positive cash generation, as well as 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: 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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