Silicon Graphics posts $126.58 million operating loss for year ended June 30

By Caroline Salls

Pittsburgh, Oct. 16 - Silicon Graphics, Inc. reported a $126.58 million operating loss for the year ended June 30 on $518.81 million in total revenue, according to its 10-K filing with the Securities and Exchange Commission.

The figures compare to a $96.47 million operating loss for the year ended June 24, 2005 on revenues of $729.97 million.

The net loss for the most recent year was $146.19 million, slipping from a $76.01 million net loss the year before.

Cash and cash equivalents on June 30 were $54.67 million, compared with $64.25 million on June 24, 2005.

According to the filing, total revenue decreased $211 million or 29% in fiscal 2006 compared with fiscal 2005, and the overall decline in revenue from fiscal 2005 to fiscal 2006 was prompted by declines in sales across all reportable segments, principally declines in sales of both the company's core systems and legacy systems, and, to a lesser extent, in sales of global services.

In addition, the figures for the year ended June 30 include an $8.39 million impairment of goodwill cost that was not incurred the year before; a $262.91 million cost of revenue, up from $60.98 million the year before; a $79.48 million research and development cost, up from $4.2 million; and a $151.51 million selling, general and administrative cost, up from $60.22 million.

Silicon Graphics, a Mountain View, Calif., technology provider, filed for bankruptcy on May 29 in the U.S. Bankruptcy Court for the Southern District of New York. The company's Chapter 11 case number is 06-10977.

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