SCIENCE

MOUNTAIN VIEW, CA -- SGI (NYSE: SGI), a world leader in high performance computing, complex data management and visualization solutions, today announced results for its fourth fiscal quarter which ended June 30, 2001. Revenue for the fourth quarter was $432 million. On a proforma basis, excluding divested businesses, this represents a 16% decrease from the same period a year ago. The operating loss for the fourth quarter was $69 million. The company had additional charges of $138 million related to restructuring and other special charges. Overall, the company posted a net loss of $232 million, or $1.20 per share, compared with a net loss on a proforma basis excluding divested businesses of $614 million, or $3.31 per share, for the same period one year ago. Revenue for fiscal year 2001 was $1.9 billion compared with $2.1 billion for fiscal year 2000 on a proforma basis excluding divested businesses. Net loss for the year was $493 million, or $2.59 per share, compared with a net loss of $900 million on a proforma basis, or $4.90 per share, for fiscal year 2000. The net loss for fiscal year 2001 includes $139 million in restructuring and other special charges. As of June 30, 2001, unrestricted cash, cash equivalents and marketable investments were $126 million compared with $118 million for the previous quarter and $258 million for the same quarter one year ago. "As we announced on July 9th, revenue levels were within expectations," said Bob Bishop, Chairman and CEO. "However, booking levels during the quarter were softer than expected and as a result we are taking immediate action." "SGI remains committed to its mission of serving technical and creative customers. In the near term, the company is focusing on three key priorities. First, we are resizing our business to reduce our operating breakeven point to $375 million in quarterly revenue and will begin to realize the benefits in the December quarter. Second, we are already moving into deeper restructuring and have begun by making several key changes in our field organization. Third, and most importantly, we are taking a number of steps to continue to protect and improve our cash position," Bishop said. As a part of its restructuring, the company announced that Anthony Robbins, President of Silicon Graphics Federal, will manage all field operations within North America. The company also named Steve Coggins as its new Senior Vice President for its European field organization. Coggins, who has just joined SGI, has previously worked for Amdahl, IBM and British Aerospace in Europe. Both appointments are effective immediately. For further information visit www.sgi.com