MILPITAS, CA — (Marketwired) — 04/27/16 — 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 ended March 25, 2016. 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 third quarter was $132 million compared to $119 million in the third quarter of 2015. GAAP net income for the third quarter was $0.7 million, or $0.02 per share compared with a net loss of $9 million, or $0.25 per share in the third quarter of 2015. Non-GAAP net income in the third quarter was $1 million, or $0.03 per share compared with net loss of $3 million, or $0.10 per share in the same quarter a year ago. The Company exited the quarter with $103 million in cash.
“This quarter we achieved non-GAAP profitability for the second consecutive quarter despite lower than anticipated revenues,” said Jorge Titinger, President and CEO. “While delays in federal business are significantly impacting our outlook for the year, our growing HPDA in-memory pipeline and newly-signed OEM agreement should help diversify and grow our revenue and profitability going forward.”
We signed our most significant agreement to date with Hewlett Packard Enterprise (“HPE”), the largest x86 vendor in the world. Through this agreement, HPE will OEM our in-memory UV technology for a new 8-socket system, more than doubling our served available market and significantly adding to our go-to-market capabilities.
In our Earth Sciences vertical, TOTAL, one of the largest integrated oil and gas companies in the world, recently increased the compute power of its SGI Pangea supercomputer by adding the equivalent of more than 80,000 laptops and increasing storage capacity by the equivalent of 6 million DVDs.
In our Manufacturing vertical, SKODA Auto launched an SGI UV and two ICE HPC systems into operation that enhance the car maker–s ability to conduct complex product performance and safety.
In our Life Sciences vertical, CSIRO (Commonwealth Scientific and Industrial Research Organization) recently installed an SGI UV3000 HPC system to handle massive data workloads. This will enable researchers across Australia to collaborate on projects in areas such as bioinformatics, genome assembly, climate modeling, nanoscience and image processing to help solve complex issues.
Based on the revenue shortfall in our federal business, the company now expects fiscal 2016 results of:
Revenue of at least $530 million
Non-GAAP earnings per share of at least $0.03, excluding approximately $15 million of adjustments
GAAP net loss per share of approximately $(0.40)
The company currently expects to achieve non-GAAP profitability for the fourth quarter based on revenue of at least $120 million.
SGI–s third quarter fiscal 2016 financial results conference call is scheduled to take place on Wednesday, April 27, 2016 at 1:30 p.m. PT (4:30 p.m. ET). A live webcast of the company–s earnings conference call will be available simultaneously on the Investor Relations section of the company–s website at . A replay of the webcast will also be available approximately two hours after the conclusion of the conference call and will remain available until next quarter.
The earnings conference call can also be accessed by dialing (888) 463-5422 (toll-free) or (970) 315-0484 (international) and entering the confirmation code 82870775. 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 82870775.
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 for more information.
Connect with SGI on (@sgi_corp), (), () and ().
The statements made in this press release regarding projected financial results, including SGI–s future product sales, anticipated growth, outlook regarding revenue, earnings 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 Forms 10-K and 10-Q 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) gains or losses on sale of assets; and (5) 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 to the comparable measures under GAAP, please refer to the company–s press releases on its website at .
© 2016 Silicon Graphics International Corp. All rights reserved. SGI, the SGI logo, SGI UV, and SGI ICE are trademarks or registered trademarks of Silicon Graphics International Corp. or its subsidiaries in the United States and/or other countries. All other product and service names mentioned are the trademarks of their respective companies.
SGI Investor Relations
Annie Leschin
(415) 775-1788
Ben Liao
(669) 900-8090
You must be logged in to post a comment Login