real-time news and commentary for investors
Thursday, Oct 10
Silicon Graphics -14.4% AH following FQ1 warning
- Silicon Graphics (SGI) expects FQ1 (Sep. quarter) revenue of $147M, below guidance of $160M-$170M and a consensus of $164.5M. EPS is expected to be in a range of $0.02-$0.04, below a prior range of $0.07-$0.14 and a $0.09 consensus. (PR)
- SGI blames an "unprecedented halt in all transaction activity that occurred in late September due to the looming government shutdown," as well as the fact its efforts to become a provider of HPC, big data/analytics, and storage hardware have it competing for " larger deals that have longer sales cycles, outside funding requirements, and final acceptance criteria."
- The company estimates the government shutdown and "possible spillover effects" could hurt FY14 (ends June '14) sales by ~10% relative to prior guidance of $760M; the consensus is at $763.7M.
- FQ1 results are due on Oct. 30.