ACADEMIA

MOUNTAIN VIEW, Calif., July 8 /PRNewswire-FirstCall/ -- SGI said late Monday that it anticipates revenue for the fourth quarter to be below the range initially estimated by the Company on April 22, 2002. For the fourth quarter, ending on June 28, 2002, revenue is projected to be approximately $280 to $290 million. Prior to this announcement, the Company had forecast revenue to be approximately $310 to $330 million for the fourth quarter. Mid-morning Tuesday the company’s shares were down over 30%. Based on preliminary data, the Company currently expects to report an operating loss of $20 to $25 million. Unrestricted cash, cash equivalents and marketable investments at June 28, 2002 are expected to be approximately $200 million. "We are disappointed with revenue for the fourth quarter. There is a continued reluctance in the IT sector to commit to significant capital spending, leading to less predictable sales cycles," said Jeff Zellmer, senior vice president and chief financial officer of SGI. "However, we expect our book to bill ratio to be above 1:1 for the June quarter. We will have additional detail when we release our results later this month." Actual results for the quarter and fiscal 2002, along with guidance for the first quarter of fiscal 2003, will be discussed in the Company's regularly scheduled conference call on Thursday, July 25, 2002. The statements in this release regarding estimated results are based on preliminary information and management assumptions.