Expand / Collapse search
Watch TV
Menu

Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions.  Legal Statement.

This material may not be published, broadcast, rewritten, or redistributed. ©2024 FOX News Network, LLC. All rights reserved. FAQ - New Privacy Policy

Published | Updated

Silicon Graphics 4Q Misses the Street; 2011 View Reaffirmed

Silicon Graphics International (NASDAQ:SGI) reported worse-than-anticipated fourth-quarter results, but the company reaffirmed its full-year fiscal 2011 forecast, which was above expectations.

The server and data-storage solution firm backed its previous forecast for break-even earnings on a per-share basis in fiscal 2011, on revenue between $550 million and $575 million for the full-year. The company expects gross margin to come in between 27% and 30% in the next fiscal year. The view  handily topped analyst views, as the Street was looking for a fiscal 2011 loss of 12 cents a share on revenue of $563.34 million.

In the fiscal fourth quarter, the company reported a loss of 91 cents a share, compared with last year’s fourth-quarter loss of 2 cents a share. On an adjusted basis, the company saw a fourth-quarter loss of 55 cents, an improvement from last year’s adjusted fourth-quarter loss of 62 cents a share.

Adjusted revenue rose to $122.2 million, compared with year-ago sales of $60.5 million.

The results missed analyst estimates, as the Street had predicted a fourth-quarter loss of 27 cents a share on revenue of $126.97 million, according to a poll by Thomson Reuters.

Gross margin widened to 19.3%, compared with 8.7% in the fourth-quarter of 2009, but was narrower than last quarter’s margin of 26.8%.

"Fiscal 2010 was a transformative year for SGI with many successes," said SGI CEO Mark J. Barrenechea, in a release. "We focused on completing the integration, delivering innovative products to market and making investments in key areas that will serve as a foundation for future growth. Further, we have strategically focused the company on the $9 billion technical computing market, where we have begun to emerge as a trusted partner."

The company also said it will resume its $40 million stock buyback plan.

Shares of Silicon Graphics fell four cents or half a percent in Tuesday’s session, closing the day at $5.92.  The stock was up 2 cents or in after-hours trading.