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Government Shutdown Batters Supercomputing Stocks

wall streetOver at Datacenter Knowledge, Rich Miller writes that the government shutdown is being felt in the supercomputing sector, where the sudden halt to government projects has led to a selloff.

Although most of the projects we are involved with are considered mission-critical, we have seen unprecedented halts to programs over the past week,” said SGI President and CEO and President Jorge Luis Titinger. “And because of the shutdown rules, we are unable to communicate with most of our key Federal customers to assess when current programs might be restarted and which programs could be delayed or rescoped.

Shares of have SGI dropped $1.60 Friday and now stand at $14.62 after the company said it trimmed its revenue projections, citing the loss of revenue from delays in several large government projects, including at least one for the intelligence community. That news also had a ripple effect in shares of Cray (CRAY), which fell 11.6 percent.

As reported here last week, the GEOINT Conference was canceled for the first time in its 10-year history with only one week’s notice. It has yet to be seen what impact the continued shutdown will have on SC13 next month in Denver.

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