SGI announced their financial results today. Normally, this would be followed by analyst speculation, CFO pontification and lots of yawning. Well, this is a special quarter for SGI. It marks the end of the first full fiscal year after Rackable purchased the company in the spring of 2009. So, how’d they do?
The SGI sales figures were up 74% to $101.6 million. Not bad considering the the lackluster economy. However, due to charges from the acquisition of Copan, installation of a new Oracle ERP system [which cost $3 million], foreign exchange and other effects, SGI’s losses actually widened. How bad? They rose to $27.6 million, which is +34%. They had revenues of $122 million at an average gross margin of 24%.
So how did the entire year look? For FY2010, SGI had sales of $403.7 million, which is very respectable for a company of their size. Their net loss was $88.5 million, which means their net sales need to creep near $500 million in order to get over the hump.
Fiscal 2010 was a transformative year for SGI with many successes,” said SGI CEO Mark J. Barrenechea. “We focused on completing the integration, delivering innovative products to market and making investments in key areas that will serve as a foundation for future growth. Further, we have strategically focused the company on the $9 billion technical computing market, where we have begun to emerge as a trusted partner. These successes translated into strong financials – full-year non-GAAP revenues of $525 million, exceeding our original plan of $500 million. As we enter fiscal year 2011, we are projecting up to 10% revenue growth and EPS breakeven, both on a non-GAAP basis.”
All told, SGI is not yet profitable. However, they’re not moving backwards. Mergers and acquisitions are difficult. The two cultures, products and markets were very different. For more info on SGI’s financial results, check out their official results here.