BIG DATA
SGI sales plummet 30 percent as marketing malady lingers
SGI has reported financial results for its fiscal fourth quarter and year ended Jun. 27, 2014.
Total revenue for the fiscal fourth quarter was $142 million, which compares with $124 million in the previous quarter and $171 million in the fourth fiscal quarter of 2013, down 27 percent, and $179 million in the fiscal fourth quarter of 2012. For fiscal year 2014, total revenue was $530 million, down from $767 million in fiscal year 2013, down 30 percent, primarily as a result of the company's strategic exit from legacy cloud infrastructure accounts and a decline in its Federal business.
GAAP net loss for the fourth quarter was $10 million, or $(0.30) per share, which compares with a GAAP net loss of $22 million, or$(0.64) per share, in the prior quarter, and GAAP net loss of $4 million, or $(0.13) per share, in the fourth quarter of fiscal 2013. Non-GAAP net loss for the quarter was $0.5 million, or $(0.01) per share, which compares with a non-GAAP net loss of $7 million, or $(0.22)per share, in the prior quarter and non-GAAP net income of $6 million, or $0.17 per diluted share, in the year-ago period.
For fiscal year 2014, GAAP net loss was $53 million, or $(1.54) per share, which compares with a net loss of $3 million, or $(0.09) per share in fiscal 2013. On a non-GAAP basis, the company reported a full-year net loss of $13 million, or $(0.39) per share, which compares with net income of $12 million, or $0.36 per diluted share, in fiscal year 2013.
Core revenue in the company's Federal business, which includes U.S. government customers, system integrators, and higher education institutions, was $37 million, down 18% from $45 million in the prior quarter and down 45% from $67 million in the same quarter one year ago. For the year, core revenue in Federal was $203 million, down 28% from $282 million in fiscal 2013. The decline for the year was driven primarily by disruptions in Federal spending, particularly in certain intelligence-related programs. Bookings for new programs in the company's core Federal business increased substantially in the fiscal fourth quarter, and the company believes that its Federal revenue is positioned to grow in fiscal 2015.
"Results for the quarter were at the high end of our expectations for revenue, margins and cash flow. We executed well on several large system deployments that were critical to our revenue performance in the quarter. We also saw a significant increase in bookings in our Federal business, which we believe bodes well for growth in fiscal 2015," said Jorge Titinger, president and CEO of SGI.