Silicon Graphics shares took a dive on Thursday when the company reported disappointing second quarter results, lower than analysts' expectations.
Including a $14 million pre-tax charge related to the merger with Cray Research, the company reported a bottom line loss of $13 million or seven cents a share. Profit from operations for the quarter ended 31 December fell to $2 million, or one cent a share, from net income of $52.4 million or 30 cents, in the year-earlier quarter. Analysts had expected SGI to report per-share earnings of two cents.
Officials at the company blamed the poor results on production delays. ?Despite our strong bookings, we did not reach expected levels of shipments, due to delays in manufacturing ramp-up for some of our new products announced on 7 October and variations in product mix,? said Edward McCracken, chairman and CEO of Silicon Graphics.
?While I?m disappointed in the results, I am encouraged by our customers? enthusiastic response to our new product line, as evidenced by our strong bookings and backlog,? he said.
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