This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SGI Reports Preliminary Results For Fiscal Second Quarter, Announces Stock Repurchase Plan

FREMONT, Calif., Jan. 15, 2013 (GLOBE NEWSWIRE) -- In conjunction with its planned presentation today at the 15 th Annual Needham Growth Conference in New York, SGI (Nasdaq:SGI) today reported preliminary results for its fiscal second quarter ended Dec. 28, 2012. The company also announced that its board of directors has authorized a $15 million stock repurchase plan.

The following results are preliminary and are subject to change pending the expected full release of fiscal second quarter results on Jan. 30, 2013.
  • On a GAAP basis, the company expects to report net income for the second quarter in the range of breakeven to $1 million, or $0.00 to $0.03 per share, which compares with earlier guidance of a net loss of $(0.22) to $(0.14) per share.
  • On a non-GAAP basis, the company expects to report net income for the second quarter in the range of $3 to $4 million, or $0.07 to $0.10 per share, which compares with earlier guidance of breakeven to $0.08 per share. Non-GAAP net income is expected to exclude approximately $3 million of net adjustments to GAAP net income, comprised of approximately $7 million of stock-based compensation expense, amortization of intangibles, restructuring, and severance charges, partially offset by a non-cash $4 million tax-related benefit.
  • The company expects to report revenue for the second quarter in the range of $170 to $172 million, which compares with earlier guidance of $180 to $195 million.
  • Revenue for the fiscal second quarter was less than expected as certain shipments for U.S. government customers pushed into the fiscal third quarter, primarily due to uncertainty related to the "Fiscal Cliff" at year-end. However, gross margins and operating expenses were better than expected, leading to stronger bottom-line performance.
  • Over the fiscal third and fourth quarters, the company currently expects to achieve revenue in the range of $400-$420 million, including approximately $50 million related to the previously disclosed low-margin deals (LMD's).
  • Cash and cash equivalents as of Dec. 28, 2012 were approximately $128 million, up from $111 million in the prior quarter. The company paid off its working capital line of credit in the quarter, an $11 million use of cash. Including this pay off, net cash in the quarter improved by $28 million, reflecting continuing improvements in working capital management.

"We are pleased to have achieved non-GAAP profitability and another strong cash performance in the second quarter, which is a reflection of our continuing improvements in deal quality, costs, and working capital management," said Jorge Titinger, president and chief executive officer. "We are making good progress on our longer-term strategic vision to leverage SGI's strong technology in the areas of Big Data, Storage, and Scale-Up Computing. At the same time, we are mindful of the challenging near-term environment for IT spending among both government and commercial customers, particularly outside the U.S. We are therefore staying focused on previously discussed operational initiatives around cost reduction and supply chain management to help maintain our positive momentum."

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs