SGI Reports Fourth Quarter and Fiscal Year 2014 Financial ResultsMILPITAS, CA -- (Marketwired - August 06, 2014) - SGI (NASDAQ: SGI), the trusted leader in high performance computing and data analytics, today reported financial results for its fiscal fourth quarter and year ended Jun. 27, 2014.
Total revenue for the fiscal fourth quarter was $142 million, which compares with $124 million in the previous quarter and $171 million in the fourth fiscal quarter of 2013. For fiscal year 2014, total revenue was $530 million, down from $767 million in fiscal year 2013, primarily as a result of the company's strategic exit from legacy cloud infrastructure accounts and a decline in its Federal business.
GAAP net loss for the fourth quarter was $10 million, or $(0.30) per share, which compares with a GAAP net loss of $22 million, or $(0.64) per share, in the prior quarter, and GAAP net loss of $4 million, or $(0.13) per share, in the fourth quarter of fiscal 2013. Non-GAAP net loss for the quarter was $0.5 million, or $(0.01) per share, which compares with a non-GAAP net loss of $7 million, or $(0.22) per share, in the prior quarter and non-GAAP net income of $6 million, or $0.17 per diluted share, in the year-ago period.
For fiscal year 2014, GAAP net loss was $53 million, or $(1.54) per share, which compares with a net loss of $3 million, or $(0.09) per share in fiscal 2013. On a non-GAAP basis, the company reported a full-year net loss of $13 million, or $(0.39) per share, which compares with net income of $12 million, or $0.36 per diluted share, in fiscal year 2013.
- Core revenue was $141 million, up 15% from $122 million in the prior quarter and up 12% from $125 million in the same quarter a year ago. For the year, core revenue was $501 million, down 7% from $542 million in fiscal 2013 solely due to declines in the company's Federal business. Core revenue includes HPC, high performance data analytics and data management, and services, but excludes revenue related to legacy cloud infrastructure and "low-margin deals" in prior periods.
- Core revenue in the company's Federal business, which includes U.S. government customers, system integrators, and higher education institutions, was $37 million, down 18% from $45 million in the prior quarter and down 45% from $67 million in the same quarter one year ago. For the year, core revenue in Federal was $203 million, down 28% from $282 million in fiscal 2013. The decline for the year was driven primarily by disruptions in Federal spending, particularly in certain intelligence-related programs. Bookings for new programs in the company's core Federal business increased substantially in the fiscal fourth quarter, and the company believes that its Federal revenue is positioned to grow in fiscal 2015.
- Outside of the Federal business (commercial and non-U.S. public sector), core revenue was $103 million, up 34% from $77 million in the prior quarter and up 78% from $58 million in the same quarter a year ago. For the year, core revenue in this sector of the business was $298 million, up 15% from $260 million in fiscal 2013.
- Revenue related to the legacy cloud, which is generally commodity servers for public cloud infrastructure, was less than $2 million, which compares with approximately $2 million in the prior quarter and $46 million in the fiscal fourth quarter of 2013.
"Results for the quarter were at the high end of our expectations for revenue, margins and cash flow. We executed well on several large system deployments that were critical to our revenue performance in the quarter. We also saw a significant increase in bookings in our Federal business, which we believe bodes well for growth in fiscal 2015," said Jorge Titinger, president and CEO of SGI. "Looking ahead, our goal is to win approximately $700 million of business in fiscal 2015, reflecting significant increases in our HPC pipeline and in our expected win rate on multiple key large HPC deals. Because these large deals have long deployment cycles, a range of revenue outcomes for the year are possible; we therefore currently expect revenue for the year in the range of $525 to $575 million, reflecting core revenue growth of 5% to 15% for the full year. This outlook includes only a modest contribution from our new UV300 HANA appliance, which we expect will begin to generate new revenue in the second half of FY15, positioning us for strong growth in FY16 and beyond."
Recent Highlights
- On Aug. 6, SGI announced that the SGI® UV™ 2000 became the first single-node SMP to exceed 100 GTEPS, as verified by the Graph 500 benchmark test for measuring large data volume processing by supercomputers. In addition to this new performance world record, the Green Graph 500 test also revealed the SGI UV 2000 to be the commercial supercomputer with the lowest power-consumption figures. The record-setting benchmarks were conducted on the SGI UV 2000 recently installed at the Institute of Mathematics for Industry at Kyushu University in Japan.
- On Jul. 6, SGI announced that Semiconductor Energy Laboratory (SEL) in Japan has selected SGI for a new, large-scale research and development installation, which will be used to facilitate the research and development of semiconductor technologies, combines SGI's large-scale shared-memory SGI UV 2000 server and SGI® ICE™ X blade-type cluster server into a unified, large-scale system.
- On Jun. 24, SGI announced that its SGI ICE X supercomputer platform garnered 4 of the top 5 most efficient supercomputer rankings for standard x86-based systems, including the #1 position, as reported on the newly released TOP500 list, demonstrating SGI's technical ability to help customers achieve their goals without the performance compromise of less efficient systems.
- On Jun. 20, UK Atomic Weapons Establishment (AWE) launched SGI ICE X Systems to accelerate research and scientific modelling for UK Defense Organization. SGI system enables AWE to quickly advance research and development, encompassing the entire life cycle of nuclear warheads, from initial concept, assessment and design through component manufacture and assembly, in-service support, decommissioning and then disposal. The SGI ICE X system at AWE ranks #40 on the TOP500 list.
- On Jun. 3, SGI previewed a single-node in-memory appliance at the SAPPHIRE NOW conference. Using the scalable shared memory architecture of SGI's next-generation SGI UV system together with SAP HANA®, the new in-memory appliance from SGI is designed to streamline database management for single large node environments, which require extremely high capacity and scale to meet the needs of in-memory databases.
Outlook
SGI provides high-performance computing and data management solutions to large government, higher education, and commercial customers. Any given customer deal can include a varying mix of compute and storage hardware, software, and services, and generally will carry terms that result in most of the product revenue associated with the deal being recognized upon final shipment or acceptance of the system. The timing of booking, installation, and acceptance of large deals is difficult to predict and can cause significant swings in quarterly revenue. The company derives a substantial portion of its revenue from the U.S. government and from third parties and educational institutions that receive funding from the U.S. government. Government shutdowns, protracted Federal budget deliberations, and other disruptions in the timely funding or acceptance of government-related programs can impact the award, deployment, and final acceptance of systems. Management provides guidance on revenue and other items based on its current expectations of the timing of revenue and associated costs; however, there can be no assurance that revenues and associated costs will be recognized according to expected schedules and management assumes no obligation to update its guidance if the timing of revenues or other circumstances in the business differ from current expectations.
The company is providing the following outlook for the fiscal year ending Jun. 26, 2015 and the fiscal first quarter ending Sep. 26, 2014:
- The company's goal is to win approximately $700 million of business in fiscal 2015, including several relatively large deals with long deployment cycles. As a result, a range of revenue outcomes for the year is possible. The company currently expects total revenue for the year in the range of $525 to $575 million. This revenue outlook would compare with core revenue of $501 million in fiscal 2014, representing revenue growth of approximately 5% to 15%. Revenue for the fiscal year is expected to be back-end loaded, with 40% to 45% of revenue in the first half of the year.
- On a GAAP basis, the company expects to report a loss for the year of $15 to $28 million, or $(0.43) to $(0.79) per share. The company expects to be profitable on a non-GAAP basis for the full year. Non-GAAP net income for the fiscal year is expected to exclude approximately $25 million of adjustments, including stock-based compensation expense, restructuring and severance costs, intangibles amortization and other items. EPS calculations assume 36 million weighted average shares outstanding.
- For the fiscal first quarter, total revenue is expected to be in the range of $115 million to $125 million.
- GAAP net loss for the fiscal first quarter is expected to be in the range of $11 to $13 million, or $(0.31) to $(0.37) per share. Non-GAAP net loss for the fiscal first quarter is expected to be in the range of $4.5 to $6.5 million, or $(0.13) to $(0.19) per share. Non-GAAP net income for the fiscal first quarter is expected to exclude approximately $6 million of adjustments, including stock-based compensation expense, restructuring and severance costs, intangibles amortization and other items. EPS calculations for the fiscal first quarter assume 34.5 million weighted average shares outstanding.
Webcast and Conference Call Information
Management will host a conference call and a live webcast of the earnings conference call will be available on the Investor Relations section of the Company's website at investors.sgi.com beginning at 1:30 p.m. PT (4:30 p.m. ET). A replay of the webcast will be available approximately two hours after the conclusion of the call and will remain available until the next earnings call.
The public can also listen to the 1:30 p.m. PT (4:30 p.m. ET) earnings conference call by dialing (888) 463-5422 (toll-free) or (970) 315-0484 (international). An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available for five days and can be accessed by dialing (855) 859-2056 (toll-free) or (404) 537-3406 (international) and entering the confirmation code: 72921173.
About SGI
SGI is a global leader in high performance solutions for compute, data analytics and data management that enable customers to accelerate time to discovery, innovation, and profitability. Visit sgi.com (sgi.com/) for more information.
Connect with SGI on Twitter (@sgi_corp), YouTube (youtube.com/sgicorp), Facebook (facebook.com/sgiglobal) and LinkedIn (linkedin.com/company/sgi).
Cautionary Statement Regarding Forward Looking Statements
The statements made in this press release regarding projected financial results, including SGI's anticipated growth and profitability, guidance for the full year and first quarter of fiscal 2015 and certain statements made in the earnings conference call, are forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Actual results could differ materially from those described by these statements due to a number of uncertainties, including, but not limited to:
- Substantial sales to U.S. government entities, which are subject to the government's budgetary constraints;
- Customer concentration risks;
- Fluctuations in the buying patterns and sizes of customer orders from one quarter to the next;
- Increased competition causing SGI to sell products or services at lower margins than expected;
- Lengthy acceptance cycles of SGI's products by certain customers, development or product delivery delays, and delays in obtaining necessary components from suppliers;
- The addition of new customers or loss of existing customers;
- Unexpected changes in the price for, and the availability of, components from SGI's suppliers;
- SGI's ability to enhance its products with new and better designs and functionality;
- Actions taken by competitors, such as new product announcements or introductions or changes in pricing;
- Market acceptance of newer products; and
- SGI's reliance on contract manufacturing and its anticipated benefits.
In addition, SGI's actual revenue and profitability for the fiscal year ending June 26, 2015 could differ materially from expectations for a number of reasons, including, but not limited to, changes driven by new accounting, regulations, interpretations or guidance and other risks as detailed in SGI's filings with the Securities and Exchange Commission ("SEC"), including those described under the caption "Risk Factors" in SGI's Annual Report on Form 10-K filed with the SEC on Sept. 9, 2013 and SGI's Quarterly Report on Form 10-Q filed with the SEC on May 2, 2014, which are available at the SEC's web site at http://www.sec.gov. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this announcement. SGI undertakes no obligation to update the information in this earnings release or the related earnings conference call, whether as a result of new information, future events or otherwise, unless otherwise required by law.
Use of Non-GAAP Financial Measures
This press release and the related earnings conference call include financial measures that are not determined in accordance with U.S. generally accepted accounting principles ("GAAP"), including non-GAAP gross margin, non-GAAP net income (loss) and non-GAAP basic and diluted net income (loss) per share. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and management exercises judgment in determining which items should be excluded in the calculation of non-GAAP measures. In addition, these non-GAAP measures may be different from non-GAAP measures used by other companies. While we believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP, we believe that non-GAAP measures are valuable in evaluating the company's operating performance and analyzing our business operations. Management may exclude the following items from one or more of non-GAAP measures: (1) share-based compensation; (2) amortization of intangible assets; (3) restructuring and severance charges; (4) excess and obsolete inventory write-off; (5) manufacturing transition costs; (6) gains or losses on investments; and (7) other non-recurring costs, including settlements and other items. Such measures are adjusted as described in the reconciliation of GAAP and non-GAAP numbers included in this release, if applicable; but these adjustments should not be construed as an inference that all of these adjustments or costs are unusual, infrequent or non-recurring.
In addition, management uses these non-GAAP financial measures to facilitate its review of the comparability of SGI's core operating performance on a period to period basis as well as to better understand the fundamental economics of a specific period's operational and financial performance. Management uses this view of SGI's operating performance for purposes of comparison with its business plan and individual operating budgets and allocations of resources.
Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating SGI's financial and operational performance in the same way that management evaluates the company's financial performance. However, these non-GAAP financial measures have limitations as an analytical tool, as they exclude the financial impact of transactions necessary or advisable for the conduct of SGI's business, such as the granting of equity compensation awards and are not intended to be an alternative to financial measures prepared in accordance with GAAP. Hence, to compensate for these limitations, management does not review these non-GAAP financial metrics in isolation from its GAAP results, nor should investors. Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between SGI's GAAP and non-GAAP financial results is provided in this press release. Investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in this release and SGI's SEC filings.
For a full reconciliation of historical non-GAAP measures referenced in this press release or today's presentation to the comparable measures under GAAP, please refer to the company's press releases on its website at www.sgi.com.
© 2014 Silicon Graphics International Corp. All rights reserved. SGI and the SGI logo are trademarks or registered trademarks of Silicon Graphics International Corp. or its subsidiaries in the United States and/or other countries. All other trademarks are property of their respective holders.
Silicon Graphics International Corp.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Year Ended
---------------------- ----------------------
June 27, June 28, June 27, June 28,
2014 2013 2014 2013
---------- ---------- ---------- ----------
Revenue $ 142,084 $ 170,532 $ 529,946 $ 767,227
Cost of revenue 106,478 123,746 391,539 578,175
---------- ---------- ---------- ----------
Gross profit 35,606 46,786 138,407 189,052
---------- ---------- ---------- ----------
Operating expenses:
Research and development 16,463 15,594 63,526 60,611
Sales and marketing 17,165 19,671 72,681 78,730
General and administrative 12,336 12,821 55,796 54,317
Restructuring 605 3,967 1,251 9,048
---------- ---------- ---------- ----------
Total operating expenses 46,569 52,053 193,254 202,706
---------- ---------- ---------- ----------
Loss from operations (10,963) (5,267) (54,847) (13,654)
---------- ---------- ---------- ----------
Interest income (expense),
net (23) (33) (117) (311)
Other income (expense),
net (359) (225) 2,162 (1,478)
---------- ---------- ---------- ----------
Total other income
(expense), net (382) (258) 2,045 (1,789)
---------- ---------- ---------- ----------
Loss before income taxes (11,345) (5,525) (52,802) (15,443)
Income tax (benefit)
provision (896) (1,060) 12 (12,623)
---------- ---------- ---------- ----------
Net loss $ (10,449) $ (4,465) $ (52,814) $ (2,820)
========== ========== ========== ==========
Basic and diluted net loss
per share $ (0.30) $ (0.13) $ (1.54) $ (0.09)
========== ========== ========== ==========
Shares used in computing
basic and diluted net loss
per share 34,445 33,859 34,260 32,909
========== ========== ========== ==========
Share-based compensation by
category is as follows:
Cost of revenue $ 344 $ 336 $ 1,676 $ 1,598
Research and development 327 504 2,072 2,250
Sales and marketing 439 347 2,598 1,629
General and administrative 1,108 1,097 5,633 4,623
---------- ---------- ---------- ----------
Total $ 2,218 $ 2,284 $ 11,979 $ 10,100
========== ========== ========== ==========
Silicon Graphics International Corp.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 27, June 28,
2014 2013
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 109,297 $ 175,181
Current portion of restricted cash 2,273 531
Accounts receivable, net 72,076 59,842
Inventories 47,354 61,770
Current portion of deferred cost of revenue 12,180 21,204
Prepaid expenses and other current assets 19,802 14,094
--------- ---------
Total current assets 262,982 332,622
Non-current portion of restricted cash 2,177 2,853
Property and equipment, net 34,584 26,170
Goodwill and Intangible assets, net 13,207 6,174
Non-current portion of deferred cost of revenue 7,592 7,281
Other assets 44,396 32,753
--------- ---------
Total assets $ 364,938 $ 407,853
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 53,128 $ 51,531
Accrued compensation 20,049 28,504
Current portion of deferred revenue 78,675 86,357
Other current liabilities 53,660 35,364
--------- ---------
Total current liabilities 205,512 201,756
Non-current portion of deferred revenue 45,422 50,362
Long-term income taxes payable 10,114 10,149
Retirement benefit obligations 12,931 11,542
Other non-current liabilities 8,807 3,790
--------- ---------
Total liabilities 282,786 277,599
Stockholders' equity 82,152 130,254
--------- ---------
Total liabilities and stockholders' equity $ 364,938 $ 407,853
========= =========
Silicon Graphics International Corp.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended
------------------------------------------
June 27, 2014
Net Gross Operating
Loss EPS Profit Expenses
--------- -------- -------- ---------
GAAP $ (10,449) $ (0.30) $ 35,606 $ 46,569
Share-based compensation (1) 2,218 0.06 344 (1,874)
Amortization and impairment
of acquired intangibles (1) 3,815 0.11 3,567 (248)
Restructuring and severance (2) 2,227 0.07 (576) (2,803)
Other non-recurring items (2) 1,734 0.05 566 (1,168)
--------- -------- -------- ---------
Non-GAAP $ (455) $ (0.01) $ 39,507 $ 40,476
========= ======== ======== =========
Gross Margin
Gross margin on a GAAP basis 25.1 %
Gross margin on a Non-GAAP
basis 27.8 %
Weighted average shares used in
computing:
Basic and dilutive net loss
per share 34,445
Three Months Ended
------------------------------------------
June 28, 2013
Net
(Loss)/ Gross Operating
Income EPS Profit Expenses
--------- -------- -------- ---------
GAAP $ (4,465) $ (0.13) $ 46,786 $ 52,053
Share-based compensation (1) 2,284 0.07 336 (1,948)
Amortization of acquired
intangibles (1) 870 0.03 255 (615)
Restructuring and severance (2) 6,808 0.19 872 (5,936)
Other non-recurring items (2) 381 0.01 161 (220)
--------- -------- -------- ---------
Non-GAAP $ 5,878 $ 0.17 $ 48,410 $ 43,334
========= ======== ======== =========
Gross Margin
Gross margin on a GAAP basis 27.4 %
Gross margin on a Non-GAAP
basis 28.4 %
Weighted average shares used in
computing:
Basic net income per share 33,859
Dilutive net income per share 35,000
Three Months Ended
------------------------------------------
March 28, 2014
Net Gross Operating
Loss EPS Profit Expenses
--------- -------- -------- ---------
GAAP $ (21,859) $ (0.64) $ 31,070 $ 52,872
Share-based compensation (1) 3,268 0.10 431 (2,837)
Amortization of acquired
intangibles (1) 1,047 0.03 441 (606)
Restructuring and severance (2) 7,145 0.21 1,451 (5,694)
Excess and obsolete inventory (2) 2,182 0.06 2,182 -
Other non-recurring items (2) 819 0.02 2 (817)
--------- -------- -------- ---------
Non-GAAP $ (7,398) $ (0.22) $ 35,577 $ 42,918
========= ======== ======== =========
Gross Margin
Gross margin on a GAAP basis 25.0 %
Gross margin on a Non-GAAP
basis 28.6 %
Weighted average shares used in
computing:
Basic and dilutive net loss
per share 34,325
Silicon Graphics International Corp.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)
Year Ended
------------------------------------------
June 27, 2014
Net Gross Operating
Loss EPS Profit Expenses
--------- --------- --------- ---------
GAAP $ (52,814) $ (1.54) $ 138,407 $ 193,254
Share-based compensation (1) 11,979 0.34 1,676 (10,303)
Amortization and impairment
of acquired intangibles (1) 6,748 0.20 4,705 (2,043)
Restructuring and severance (2) 12,222 0.36 2,079 (10,143)
Excess and obsolete
inventory (2) 5,424 0.16 5,424 -
Other non-recurring items (2) 5,383 0.16 672 (4,711)
Gain on investment (2) (1,717) (0.05) - -
Canada tax benefits (2) (611) (0.02) - -
--------- --------- --------- ---------
Non-GAAP (13,386) $ (0.39) 152,963 166,054
========= ========= ========= =========
Gross Margin
Gross margin on a GAAP basis 26.1%
Gross margin on a Non-GAAP
basis 28.9%
Weighted average shares used
in computing:
Basic and dilutive net loss
per share 34,260
Year Ended
------------------------------------------
June 28, 2013
Net
(Loss)/ Gross Operating
Income EPS Profit Expenses
--------- --------- --------- ---------
GAAP $ (2,820) $ (0.09) $ 189,052 $ 202,706
Share-based compensation (1) 10,100 0.30 1,598 (8,502)
Amortization of acquired
intangibles (1) 3,709 0.11 1,033 (2,676)
Restructuring and severance (2) 13,965 0.42 1,865 (12,100)
Other non-recurring items (2) (57) - 161 218
Income tax abatement (2) (12,736) (0.38) - -
--------- --------- --------- ---------
Non-GAAP $ 12,161 $ 0.36 $ 193,709 $ 179,646
========= ========= ========= =========
Gross Margin
Gross margin on a GAAP basis 24.6%
Gross margin on a Non-GAAP
basis 25.2%
Weighted average shares used
in computing:
Basic net income per share 32,909
Dilutive net income per
share 33,814
NOTE: This presentation includes certain financial measures not in
conformity with Generally Accepted Accounting Principles in the United
States (non-GAAP measures). Our non-GAAP measures are not meant to be
considered in isolation or as a substitute for comparable GAAP measures, and
should be read only in conjunction with our consolidated financial
statements prepared in accordance with GAAP.
(1) Adjustments to exclude certain non-cash expenses such as share-based
compensation and amortization and impairment of intangible assets.
(2) Adjustments to exclude the items discussed below because such items are
either operating expenses which would not otherwise have been incurred
by the company in the normal course of the company's business operations
or are not reflective of the company's core results over time. These
items may include recurring as well as non-recurring items.
(a) Restructuring Charges and severance - Restructuring charges consist
primarily of severance expense, facility closure and relocation costs.
(b) Other non-recurring items include settlements, headquarters relocation
costs, asset impairments, acquisition-related costs, and costs
associated with contract manufacturing transition / termination.
(c) Excess and obsolete charges related to our strategic withdrawal from
legacy cloud infrastructure and other products that are at the end of
the product life cycle.
Silicon Graphics International Corp.
TRENDED FINANCIAL DATA
(In thousands)
(Unaudited)
Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13
-------- -------- -------- --------
Total Revenue
Americas $123,385 $112,358 $142,215 $118,550
APJ 44,434 27,735 36,314 28,084
EMEA 25,062 31,133 54,059 23,898
-------- -------- -------- --------
Total revenue $192,881 $171,226 $232,588 $170,532
======== ======== ======== ========
Revenue
Compute $130,800 $109,129 $160,367 $ 97,870
Storage 15,515 18,911 26,773 31,324
-------- -------- -------- --------
Product Revenue 146,315 128,040 187,140 129,194
Service Revenue 46,566 43,186 45,448 41,338
-------- -------- -------- --------
Total revenue $192,881 $171,226 $232,588 $170,532
======== ======== ======== ========
Cost of revenue
Product $122,597 $ 97,350 $152,523 $ 99,469
Service 28,074 26,312 27,573 24,277
-------- -------- -------- --------
Total cost of revenue $150,671 $123,662 $180,096 $123,746
======== ======== ======== ========
Gross margin by Product and Service
Product Gross Margin 16.2% 24.0% 18.5% 23.0%
Service Gross Margin 39.7% 39.1% 39.3% 41.3%
Total gross margin 21.9% 27.8% 22.6% 27.4%
======== ======== ======== ========
Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14
-------- -------- -------- --------
Total Revenue
Americas $102,212 $ 62,648 $ 56,554 $ 56,122
APJ 24,266 24,383 52,508 35,182
EMEA 21,041 29,029 15,221 50,780
-------- -------- -------- --------
Total revenue $147,519 $116,060 $124,283 $142,084
======== ======== ======== ========
Revenue
Compute $ 88,842 $ 60,418 $ 72,805 $ 85,375
Storage 19,978 16,916 13,122 17,109
-------- -------- -------- --------
Product Revenue 108,820 77,334 85,927 102,484
Service Revenue 38,699 38,726 38,356 39,600
-------- -------- -------- --------
Total revenue $147,519 $116,060 $124,283 $142,084
======== ======== ======== ========
Cost of revenue
Product $ 88,692 $ 61,343 $ 70,759 $ 84,991
Service 20,579 21,234 22,454 21,487
-------- -------- -------- --------
Total cost of revenue $109,271 $ 82,577 $ 93,213 $106,478
======== ======== ======== ========
Gross margin by Product and Service
Product Gross Margin 18.5% 20.7% 17.7% 17.1%
Service Gross Margin 46.8% 45.2% 41.5% 45.7%
Total gross margin 25.9% 28.8% 25.0% 25.1%
======== ======== ======== ========
Silicon Graphics International Corp.
CORE REVENUE TREND
(In thousands)
(Unaudited)
Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13
-------- -------- -------- --------
Core Federal
Federal $ 68,156 $ 64,803 $100,809 $ 66,857
Low- Margin Deals - - (18,555) -
-------- -------- -------- --------
Total Core Federal (*) 68,156 64,803 82,254 66,857
-------- -------- -------- --------
Core International / Commercial
International / Commercial 79,347 68,200 99,627 58,074
Low- Margin Deals (15,334) - (30,194) -
-------- -------- -------- --------
Total Core International /
Commercial (**) 64,013 68,200 69,433 58,074
-------- -------- -------- --------
Total Core Revenue 132,169 133,003 151,687 124,931
-------- -------- -------- --------
Legacy Cloud 45,378 38,223 32,152 45,601
Low- Margin Deals 15,334 - 48,749 -
-------- -------- -------- --------
Total Revenue $192,881 $171,226 $232,588 $170,532
======== ======== ======== ========
Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14
-------- -------- -------- --------
Core Federal
Federal $ 76,374 $ 44,402 $ 45,013 $ 37,077
Low- Margin Deals - - - -
-------- -------- -------- --------
Total Core Federal (*) 76,374 44,402 45,013 37,077
-------- -------- -------- --------
Core International / Commercial
International / Commercial 55,259 62,482 77,215 103,470
Low- Margin Deals - - - -
-------- -------- -------- --------
Total Core International /
Commercial (**) 55,259 62,482 77,215 103,470
-------- -------- -------- --------
Total Core Revenue 131,633 106,884 122,228 140,547
-------- -------- -------- --------
Legacy Cloud 15,886 9,176 2,055 1,537
Low- Margin Deals - - - -
-------- -------- -------- --------
Total Revenue $147,519 $116,060 $124,283 $142,084
======== ======== ======== ========
(*) Core Federal revenue includes U.S. government customers, system
integrators, and higher education institutions but excludes low-margin
deals
(**) Core International / Commercial revenue includes HPC, Big Data,
storage, and services, excludes revenue related to legacy cloud
infrastructure and low-margin deals
Contact Information:
SGI Investor Relations
John Swenson
+1-669-900-8129
jswenson@sgi.com
