UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 10-Q
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. |
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For the quarterly period ended September 24, 2004. |
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or |
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Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. |
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For the transition period from to . |
Commission File Number 1-10441
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SILICON GRAPHICS, INC. |
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DELAWARE |
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94-2789662 |
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1500 Crittenden Lane, Mountain
View, California 94043-1351 |
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(650) 960-1980 |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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Yes |
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No |
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As of October 22, 2004 there were 262,429,677 shares of Common Stock outstanding.
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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Yes |
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No |
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SILICON GRAPHICS, INC.
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
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Management’s Discussion and Analysis of Results of Operations and Financial Condition |
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Trademarks used in this Form 10-Q: Silicon Graphics, Altix, Octane, Onyx, IRIX, Silicon Graphics Fuel, SGI and Tezro are registered trademarks, and Silicon Graphics Prism and CXFS are trademarks of Silicon Graphics, Inc. in the U.S. and/or other countries worldwide. MIPS is a registered trademark of MIPS Technologies, Inc. used under license by Silicon Graphics, Inc. UNIX is a registered trademark of The Open Group, in the U. S. and other countries. Intel, Pentium and Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the U. S. and other countries. Linux is a registered trademark of Linus Torvalds.
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SILICON GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
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Three Months Ended |
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(In thousands, except per share amounts) |
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Sept. 24, 2004 |
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Sept. 26, 2003 |
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Product and other revenue |
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$ |
97,986 |
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$ |
118,115 |
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Service revenue |
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77,421 |
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84,101 |
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Total revenue |
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175,407 |
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202,216 |
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Costs and expenses: |
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Cost of product and other revenue |
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65,785 |
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70,316 |
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Cost of service revenue |
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46,692 |
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50,750 |
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Research and development |
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23,306 |
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31,959 |
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Selling, general and administrative |
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62,717 |
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69,351 |
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Other operating expense, net (1) |
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3,166 |
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24,236 |
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Total costs and expenses |
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201,666 |
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246,612 |
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Operating loss |
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(26,259 |
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(44,396 |
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Interest and other income (expense), net |
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(5,402 |
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(7,358 |
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Loss from continuing operations before income taxes |
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(31,661 |
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(51,754 |
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Income tax benefit |
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(3,732 |
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(3,029 |
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Net loss from continuing operations |
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$ |
(27,929 |
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(48,725 |
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Discontinued operations: |
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Net (loss) income from discontinued operations, net of tax |
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(276 |
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796 |
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Net loss |
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$ |
(28,205 |
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(47,929 |
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Net loss per share – basic and diluted: |
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Continuing operations |
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$ |
(0.11 |
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(0.23 |
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Discontinued operations |
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(0.00 |
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0.00 |
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Net loss per share – basic and diluted: |
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$ |
(0.11 |
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$ |
(0.23 |
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Common shares outstanding – basic and diluted |
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262,039 |
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209,570 |
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(1) Represents charges for estimated restructuring costs, including related accretion expense, and asset impairments in each of the three-month periods ended September 24, 2004 and September 26, 2003.
The accompanying notes are an integral part of these condensed consolidated financial statements.
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SILICON GRAPHICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
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Sept. 24, 2004 |
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June 25, 2004 |
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(unaudited) |
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(1) |
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Assets: |
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Current assets: |
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Cash and cash equivalents |
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$ |
122,933 |
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$ |
154,855 |
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Short-term marketable investments |
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2,138 |
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2,010 |
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Short-term restricted investments |
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37,624 |
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23,585 |
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Accounts receivable, net |
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76,215 |
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113,901 |
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Inventories |
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67,328 |
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66,938 |
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Prepaid expenses and other current assets |
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39,044 |
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34,916 |
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Total current assets |
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345,282 |
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396,205 |
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Restricted investments |
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713 |
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909 |
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Property and equipment, net |
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68,529 |
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74,595 |
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Other assets |
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95,735 |
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98,215 |
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$ |
510,259 |
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$ |
569,924 |
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Liabilities and Stockholders’ Deficit: |
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Current liabilities: |
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Accounts payable |
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$ |
60,099 |
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$ |
65,119 |
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