FREMONT, Calif., March 21, 2012 /PRNewswire/ -- SGI® (NASDAQ:SGI), the trusted leader in technical computing, today announced plans to restructure its European operations to reduce operating expenses in the region. As part of the restructuring plan, SGI plans to reduce approximately 25 percent of the Company's European workforce, close certain legal entities and offices in Europe and realign staff and operations in the region.
The Company expects to incur pre-tax cash charges in the range of $14 million to $17 million, a majority of which will be recognized over the next three fiscal quarters. These charges will primarily consist of employee termination benefits. Upon completion of these restructuring actions, SGI expects to recognize annualized savings of approximately $7.5 million. The Company expects the restructuring to have limited impact on SGI's customers in Europe.
"We believe our restructuring plan is of the right size and scope to navigate a course through the European economic situation with the goal of achieving profitability in that region," said Jorge Titinger, CEO of SGI. "This new organization and structure will put us in a better position to provide all of our customers the world-class levels of solutions and services they deserve and expect while improving our profitability."
"This was a difficult decision for our management team and Board given the significant contributions made by all of our European employees. The actions we are taking are necessary as we look to improve the Company's operational efficiency and profitability going forward. SGI is committed to Europe for the long term and we expect that we will continue to grow our business in the region, continuing to win new customers and building business with existing customers," Titinger concluded.About SGI SGI, the trusted leader in technical computing, is focused on helping customers solve their most demanding business and technology challenges. Visit www.sgi.com for more information. Contact Information Ben LiaoSGI Investor Relations+1-510-933-8430 firstname.lastname@example.org © 2012 SGI. SGI and its product names and logos 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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV