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SGI reports Q3 2010, posts loss

Yesterday was a big day for HPC earnings, with both Cray and SGI reporting for the period ended Mar 31. The news was bad for Cray, and SGI had an even harder time of it

SGI logoQ3 GAAP net loss from continuing operations was $0.67 per share, compared to a GAAP net loss of $0.46 per share for the comparable year ago quarter. Q3 non-GAAP net loss was $0.36 per share, compared to a non-GAAP net loss of $0.24 per share for the comparable year ago quarter.

Cray lost $0.34 per share during the same period this year, more than double what it lost in the comparable prior year period (GAAP; Cray doesn’t report non-GAAP numbers). It’s been a year now since Rackable took over the company, and the financials have been slow to turn around: SGI has not posted a profitable quarter since the acquisition.

Can you draw a larger conclusion from the negative results of both companies? I’ve thought about it a little, and I can’t (other than HPC is a tough business). Although they are both racing toward the launch of very important new products (UV for SGI and Baker for Cray) and this might account for some drop in revenues, they are both in very different positions in terms of their business lifecycle and financials.

Comments

  1. Want a common link? How about they have each locked up the whole DoD HPCMP TI for the last 2 years?

    Nothing will kill a company faster than Cray Henry and his posse.

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