Silicon Graphics has shortened its name to SGI in an attempt to shake off its image as a niche graphics workstation vendor.
The name change marks the latest stage of chief executive Rick Belluzzo's so far successful campaign to turn around SGI's lagging financial performance.
Even though it is commonly refered to as SGI, the company said research found it was still perceived as a niche oriented, high performance graphics workstation provider because of the Silicon Graphics name.
Moreover, SGI said it had little recognition in the servers and supercomputers arena, even though these areas account for 50 per cent of its product revenue.
"Accurately aligning the perceptions of the marketplace and potential customers with what the company has to offer is fundamental to effective marketing," said Belluzzo. "The move to create a corporate identity that reflects our position is a logical next step in the company's turnaround."
But the name Silicon Graphics isn't going to disappear completely, becoming instead one of SGI's three sub brands, alongside SGI servers and services and Cray supercomputers.
Branding specialists Landor Associates who conducted the research and created the new brand image said the market SGI operates in requires a flexible brand.
"In markets evolving as rapidly as those of graphics workstations and servers, a brand has to be flexible enough to expand into new categories and communicate new messages, while remaining memorable and distinctive enough to stand out from its high tech competition," said Clay Timon, chief executive of Landor.
SGI's financial belt tightening saw the company's most recent financial performance comprehensively beating analysts' expectations. SGI in January reported a net loss for its second quarter of fiscal 1999 of $20.3 million, or $0.11 per share. Wall Street analysts had predicted a loss of $0.19 per share.
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