SGI Sees 1Q Bottom Line Below Analysts' Views - TheStreet

Silicon Graphics

(SGI)

is projecting lower-than-expected financial results for the first quarter, citing materials shortages related to a few suppliers.

The company expects to report a loss of 28 cents to 30 cents a share, including a gain from the sale of selected assets and other income of about $50 million. SGI expects total revenue of $420 million for the quarter ended Sept. 30. Silicon Graphics lost 37 cents a share in the year-ago first quarter.

According to a

First Call/Thomson Financial

survey, five analysts expect the company to lose 14 cents a share for this year's first-quarter.

For the second quarter of fiscal 2001, the company expects revenue of $500 million to $530 million. The company expects backlog at Sept. 30 to total $370 million, which is $70 million higher than June 30 and about $120 million higher than "the desired level."

Separately, SGI disclosed plans to buy back up to 50 million common shares. The company has about 188.9 million shares outstanding.

SGI plans to release first-quarter earnings Oct. 23.

Shares of Silicon Graphics closed higher by 6 cents, or 1.64%, at $3.88.