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.

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