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Barron's financial analysis on SGI: "circumstances dire"

It’s interesting to me when broader communities peek into our little corner of the world. Today’s morsel is a story from Barron’s on SGI. It’s titled “Don’t Be Tempted by SGI”, so you probably know where the article is headed (tip to HPCwire for the pointer)

SGI logoThe stock (ticker: SGIC) is down 59% this year, and its valuation — it trades at less than one-third its trailing sales — may tempt some investors. But the history of the business shows that sales of big, expensive supercomputers are rarely profitable.

…The circumstances now are dire for SGI. It had just $40 million in cash, as of its most recent quarter, and it must begin principal payments on $12.75 million of the Morgan Stanley loan next year. It has incurred an operating cash loss of $65 million over the past four quarters. And on its most recent conference call, its chief financial officer warned of further indebtedness.

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  1. […] West at InsideHPC.com pointed to an article at Barron’s about SGI. Before I get into this, I want to note that I […]

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