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All statements made on this conference call are made only as of today’s date. SGI undertakes no obligation to update the information in this conference call whether as a result of new information, future events or otherwise. To obtain copies of our latest SEC filings please visit www.SEC.gov or our website.Also during today’s call we will make reference to several non-GAAP financial measures. You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in our earnings press release which again is posted on our website. Please note there is no accompanying slide presentation as part of this earnings call; however, all of the financial information is still available and we have included certain historical financial information in supplemental tables in the press release. Now to our conference call: Jorge will provide highlights of the company’s performance for F4Q and outline our long-term strategic plan. Bob will give further detail on the company’s financial performance, guidance for F1Q 2013, our initial thoughts on the full year and our long-term target model. We will then take your questions. I would now like to turn the call over to Jorge Titinger, SGI’s CEO. Jorge? Jorge Titinger Thank you, John, and good afternoon to you all. I’m pleased to have the opportunity to update you after my first full quarter at SGI. Before I begin I would like to welcome Bob Nikl who joined the company in May. I’m excited to have Bob with us as he has more than thirty years of experience in CFO and other finance roles. He and I worked together at Verigy where as a team we realized significant operational improvements and great results for shareholders. I’m looking forward to achieving some of the same successes with Bob and the rest of the management team here at SGI.
Let me begin by providing some financial highlights for F4Q. Revenue for the quarter was $179 million, and our non-GAAP gross margin exceeded expectations at 26%. During the quarter, revenue recognition of one significant low-margin deal slipped in F1Q. This caused F4Q revenue to be at the low end of our guided range and also led to higher than expected gross margin. Cash increased by $16 million in the quarter, reflecting improvements in working capital and positive adjusted EBITDA performance.Overall, our results in F4Q are a clear indication that are fundamental business is solid and improving. Although we still have challenges in front of us, including working through the remainder of the low margin deals that I discussed last quarter we believe we’re on the right path. With that as a backdrop I’d like to move towards our strategic plan and the steps we are taking to enhance our customer value proposition and long-term profitability. When I spoke to you last quarter I shared a similar perspective that I had gained from my initial discussions with key customers, employees and investors. Their observations echoed the reasons that I was excited to join SGI, namely that the markets for our products are large and growing, our reputation as a leading provider of advanced solutions is solid, and our customers continue to turn to us to help solve our most complex technical challenges. Three months later I am even more enthusiastic based on the trends that are apparent across our served markets. We see significant momentum in big data and HPC, as customers in the big data space need the speed and scale that HPC can provide. Starting from our current competitive position and looking at the industries we serve and the products and services we provide, we have a great many opportunities before us as we take the right strategic steps to capitalize on them while improving our financial discipline. Read the rest of this transcript for free on seekingalpha.com