INDUSTRY

Silicon Graphics said it expects fiscal first-quarter sales and revenue to be lower than expected as sales remain sluggish. Shares of the company's stock were down 7% this morning. The company now expects an operating loss of $25 million on revenue of $175 million for the period, below previous guidance for an operating loss of $10 million and $20 million on revenue of $190 million to $210 million. Analysts polled by Thomson First Call expect the company to lose 3 cents per share on revenue of $204.1 million. The company attributed the revision to higher backlog levels at the end of the first quarter, along with normal seasonal trends. However, December revenue is expected to increase. Silicon Graphics will update its guidance for the second quarter when it releases first-quarter results Oct. 19.