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Silicon Graphics Sees Hefty Loss

March 28, 1998|From Bloomberg News

Silicon Graphics Inc. on Friday forecast a "significant" loss and lower sales for this quarter as the computer maker struggles with declines in its workstation and supercomputer businesses.

The company, which is known for its high-powered computers--they were used to create the special effects in movies such as "Jurassic Park" and "Forrest Gump"--told analysts it will post a loss of between 30 and 45 cents a share for the quarter ending Tuesday. It had been expected to break even, according to a survey of analysts by IBES International Inc.

The loss comes as the firm faces falling prices and stiff competition from rivals such as Hewlett-Packard Co. and Sun Microsystems Inc. The January appointment of Richard Belluzzo as chairman and chief executive was touted as a step toward reversing the company's fortunes. Friday's warning indicates that a turnaround from two quarters of losses could prove elusive.

SGI shares fell 19 cents to close at $13.94 on the NYSE, less than half their 52-week high of $29.56 reached in September.

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