SOURCE: SGI

SGI

April 30, 2014 16:00 ET

SGI Reports Financial Results for Third Quarter of Fiscal 2014

MILPITAS, CA--(Marketwired - Apr 30, 2014) - SGI (NASDAQ: SGI), the trusted leader in high performance computing and Big Data, today reported financial results for its fiscal third quarter ended Mar. 28, 2014. Total revenue for the fiscal third quarter was $124 million, which compares with $116 million in the previous quarter and $233 million in the third fiscal quarter of 2013.

GAAP net loss for the third quarter was $22 million, or $(0.64) per share, which compares with a GAAP net loss of $14 million, or $(0.40) per share, in the prior quarter, and GAAP net income of $9 million, or $0.27 per diluted share, in the third quarter of fiscal 2013. Non-GAAP net loss for the quarter was $7 million, or $(0.22) per share, which compares with non-GAAP net loss of $7 million, or $(0.20) per share, in the prior quarter and non-GAAP net income of $6 million, or $0.18 per diluted share, in the year-ago period.

  • Core revenue, which includes HPC, Big Data, storage, and services, but excludes revenue related to legacy cloud infrastructure and "low-margin deals" in prior periods, was $122 million, which compares with $107 million in the prior quarter and $152 million in the same quarter a year ago.
  • Core revenue in the company's Federal business, which includes U.S. government customers, system integrators, and higher education institutions, was $45 million, up from $44 million in the prior quarter and down from $82 million in the same quarter one year ago.
  • Outside of the Federal business (commercial and non-U.S. public sector), core revenue was $77 million, up 24% from $62 million in the prior quarter and up 11% from $69 million in the same quarter a year ago.
  • Revenue related to the legacy cloud, which is generally commodity servers for public cloud infrastructure, was $2 million, which compares with $9 million in the prior quarter and $32 million in the fiscal third quarter of 2013.

"Results for the quarter were consistent with our expectations and reflected solid core revenue growth in international public sector and commercial accounts, coupled with continued softness in the spending of certain Federal defense-related customers," said Jorge Titinger, president and CEO of SGI. "Our core international and commercial business is on track to grow approximately 35% in the fiscal second half; however, in our Federal business we have yet to see the return of historical spending patterns or incremental new program wins to drive immediate growth. As a result, we currently expect total revenue for the fiscal second half to be within the lower end of our previously forecasted range. Looking beyond the current fiscal year, we are confident that we are making the right investments in people and products to drive market share gains and improved ranking among the top providers of supercomputers globally, and to achieve profitable growth in the enterprise through our highly differentiated core offerings for high-performance shared memory analytics."

Recent Highlights

  • On Apr. 30, SGI announced that Massachusetts General Hospital and Harvard Medical School's Center for Advanced Medical Imaging Sciences (CAMIS) Radiology Department has selected SGI to enhance research capabilities for diagnostic medical imaging. CAMIS chose SGI® UV™ 2000 and SGI® UV™ 20 large shared-memory systems and SGI® InfiniteStorage™ 5000 due to its proven ability to solve large-scale, data-intensive problems with industry-standard components while providing ease-of-use benefits.

  • On Apr. 16, SGI announced a partnership with NVIDIA and GIS Federal, a supplier of high performing innovative solutions for big data, cloud computing and intuitive tools across all intelligence disciplines, to power geospatial database that can scale several orders of magnitude higher than other compute databases. The database runs on a 10 terabyte (TB) SGI® UV™ 2000 system, with 16 NVIDIA® Tesla® K20x graphics processing unit (GPU) accelerators.

  • On Apr. 8, 3M and SGI announced the implementation of a fully functional supercomputer developed in collaboration with Intel, using a revolutionary two-phase immersion cooling technology pioneered by 3M that reduces water consumption and energy use -- while increasing supercomputer efficiency. The proof-of-concept includes the fifth generation SGI® ICE™ X distributed memory supercomputer with the Intel® Xeon® processor E5-2600 placed directly into the 3M™ Novec™ Engineered Fluid, showcasing this technology as the "Data Center of the Future."

  • On Mar. 3, SGI announced that the Japan Agency for Marine-Earth Science and Technology (JAMSTEC) has selected SGI UV 2000 powered by Intel® Xeon® processor E5-4600 v2 series for pre and post-processing offline grid simulations for its Earth Simulator supercomputer. JAMSTEC's SGI UV 2000 solution is one of the largest shared memory systems powered by 2,560 cores of Intel® Xeon® processor E5-4600 v2 series and provides 49.152 Tflops of computing capacity with 32TB shared memory for a Single System Instance, propelling JAMSTEC to the next level of large scale, fine-grained simulations that were otherwise unthinkable due to memory constraints.

  • On Feb. 6, SGI announced a partnership with Cognilytics, combining SGI's HPC technology for Big Data analytics with Cognilytics' expertise in implementing technologies such as Hadoop and SAP Platform and Analytics solutions -- bringing customers a more robust Big Data and HPC offering. Infrastructure solutions delivered through the new SGI and Cognilytics partnership include SGI® InfiniteData Cluster™ and SGI® UV™.

Outlook
SGI provides high-performance computing and data management solutions to large government, higher education, and commercial customers. Any given customer deal can include a varying mix of compute and storage hardware, software, and services, and generally will carry terms that result in most of the product revenue associated with the deal being recognized upon final shipment or acceptance of the system. The timing of booking, installation, and acceptance of large deals is difficult to predict and can cause significant swings in quarterly revenue. The company derives a significant portion of its revenue from the U.S. government and from third parties and educational institutions that receive funding from the U.S. government. Government shutdowns, protracted Federal budget deliberations, and other disruptions in the timely funding or acceptance of government-related programs can impact the award, deployment, and final acceptance of systems. Management provides guidance on revenue and other items based on its current expectations of the timing of revenue and associated costs; however, there can be no assurance that revenues and associated costs will be recognized according to expected schedules and management assumes no obligation to update its guidance if the timing of revenues or other circumstances in the business differ from current expectations.

The company is providing the following guidance for the fiscal fourth quarter and fiscal half ending Jun. 27, 2014:

  • Total revenue for the fiscal second half is expected to be in the range of $260 to $270 million. Total revenue for the fiscal fourth quarter is expected to be in the range of $135 to $145 million.

  • Excluding Federal, core revenue for the second half of fiscal 2014 is expected to be in the range of $170 to $175 million, up approximately 35% from the second half of fiscal 2013, including expected year-over-year growth of at least 60% in the fiscal fourth quarter.

  • GAAP net loss for the fiscal fourth quarter is expected to be in the range of $8 - $11 million, or $(0.23) to $(0.30) per share. Non-GAAP net loss for the fiscal fourth quarter is expected to be in the range of $3 - $6 million, or $(0.08) to $(0.15) per share. Non-GAAP net loss is expected to exclude approximately $5 million of adjustments, including stock-based compensation expense, restructuring and severance costs, intangibles amortization and other items. Both EPS calculations assume 34.8 million weighted average shares outstanding.

Webcast and Conference Call Information
A live webcast of the earnings conference call will be available on the Investor Relations section of the Company's website at investors.sgi.com beginning at 2:00 p.m. PT (5:00 p.m. ET). A replay of the webcast will be available approximately two hours after the conclusion of the call and will remain available until the next earnings call.

The public can also listen to the earnings conference call by dialing (888) 463-5422 (toll-free) or (970) 315-0484 (international). An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available for five days and can be accessed by dialing (855) 859-2056 (toll-free) or (404) 537-3406 (international) and entering the confirmation code: 29326971.

About SGI
SGI, the trusted leader in high performance computing (HPC) and Big Data, is focused on helping customers solve their most demanding business and technology challenges by delivering technical computing, Big Data analytics, cloud computing, and petascale storage solutions that accelerate time to discovery, innovation, and profitability. Visit sgi.com (sgi.com/) for more information.

Connect with SGI on Twitter (@sgi_corp), YouTube (youtube.com/sgicorp), Facebook (facebook.com/sgiglobal) and LinkedIn (linkedin.com/company/sgi).

Cautionary Statement Regarding Forward Looking Statements
The statements made in this press release regarding projected financial results, including SGI's anticipated growth and profitability, guidance for the fourth quarter and second half of fiscal 2014 and certain statements made in the earnings conference call, are forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Actual results could differ materially from those described by these statements due to a number of uncertainties, including, but not limited to:

  • Substantial sales to U.S. government entities, which are subject to the government's budgetary constraints;
  • Customer concentration risks;
  • Fluctuations in the buying patterns and sizes of customer orders from one quarter to the next;
  • Increased competition causing SGI to sell products or services at lower margins than expected;
  • Lengthy acceptance cycles of SGI's products by certain customers, development or product delivery delays, and delays in obtaining necessary components from suppliers;
  • The addition of new customers or loss of existing customers;
  • Unexpected changes in the price for, and the availability of, components from SGI's suppliers;
  • SGI's ability to enhance its products with new and better designs and functionality;
  • Actions taken by competitors, such as new product announcements or introductions or changes in pricing;
  • Market acceptance of newer products; and
  • SGI's increased reliance on contract manufacturing and its anticipated benefits. 

In addition, SGI's actual revenue and profitability for the fiscal year ending June 27, 2014 could differ materially from expectations for a number of reasons, including, but not limited to, changes driven by new accounting, regulations, interpretations or guidance and other risks as detailed in SGI's filings with the Securities and Exchange Commission ("SEC"), including those described under the caption "Risk Factors" in SGI's Annual Report on Form 10-K filed with the SEC on Sept. 9, 2013 and SGI's Quarterly Report on Form 10-Q filed with the SEC on Feb. 3, 2014, which are available at the SEC's web site at http://www.sec.gov. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this announcement. SGI undertakes no obligation to update the information in this earnings release or the related earnings conference call, whether as a result of new information, future events or otherwise, unless otherwise required by law.

Use of Non-GAAP Financial Measures
This press release and the related earnings conference call include financial measures that are not determined in accordance with U.S. generally accepted accounting principles ("GAAP"), including non-GAAP gross margin, non-GAAP net income (loss) and non-GAAP basic and diluted net income (loss) per share. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and management exercises judgment in determining which items should be excluded in the calculation of non-GAAP measures. In addition, these non-GAAP measures may be different from non-GAAP measures used by other companies. While we believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP, we believe that non-GAAP measures are valuable in evaluating the company's operating performance and analyzing our business operations. Management may exclude the following items from one or more of non-GAAP measures: (1) share-based compensation; (2) amortization of intangible assets; (3) restructuring and severance charges; (4) excess and obsolete inventory write-off; (5) manufacturing transition costs; (6) gains or losses on investments; and (7) other non-recurring costs, including settlements and other items. Such measures are adjusted as described in the reconciliation of GAAP and non-GAAP numbers included in this release, if applicable; but these adjustments should not be construed as an inference that all of these adjustments or costs are unusual, infrequent or non-recurring.

In addition, management uses these non-GAAP financial measures to facilitate its review of the comparability of SGI's core operating performance on a period to period basis as well as to better understand the fundamental economics of a specific period's operational and financial performance. Management uses this view of SGI's operating performance for purposes of comparison with its business plan and individual operating budgets and allocations of resources.

Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating SGI's financial and operational performance in the same way that management evaluates the company's financial performance. However, these non-GAAP financial measures have limitations as an analytical tool, as they exclude the financial impact of transactions necessary or advisable for the conduct of SGI's business, such as the granting of equity compensation awards and are not intended to be an alternative to financial measures prepared in accordance with GAAP. Hence, to compensate for these limitations, management does not review these non-GAAP financial metrics in isolation from its GAAP results, nor should investors. Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between SGI's GAAP and non-GAAP financial results is provided in this press release. Investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in this release and SGI's SEC filings.

For a full reconciliation of historical non-GAAP measures referenced in this press release or today's presentation to the comparable measures under GAAP, please refer to the company's press releases on its website at www.sgi.com.

© 2014 Silicon Graphics International Corp. All rights reserved. SGI and the SGI logo 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.

                         
Silicon Graphics International Corp.  
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(In thousands, except per share amounts)  
                         
    Three Months Ended     Nine Months Ended  
    March 28,     March 29,     March 28,     March 29,  
    2014     2013     2014     2013  
                                 
Revenue   $ 124,283     $ 232,588     $ 387,862     $ 596,695  
Cost of revenue     93,213       180,096       285,061       454,429  
                                 
Gross profit     31,070       52,492       102,801       142,266  
                                 
Operating expenses:                                
  Research and development     17,327       15,518       47,063       45,017  
  Sales and marketing     19,105       19,824       55,516       59,059  
  General and administrative     16,431       14,924       43,460       41,496  
  Restructuring     9       740       646       5,081  
    Total operating expenses     52,872       51,006       146,685       150,653  
(Loss) income from operations     (21,802 )     1,486       (43,884 )     (8,387 )
  Interest income (expense), net     (41 )     (11 )     (94 )     (278 )
  Other income (expense), net     533       (359 )     2,521       (1,253 )
    Total other income (expense), net     492       (370 )     2,427       (1,531 )
(Loss) income before income taxes     (21,310 )     1,116       (41,457 )     (9,918 )
Income tax (benefit) provision     548       (8,108 )     908       (11,563 )
Net (loss) income   $ (21,858 )   $ 9,224     $ (42,365 )   $ 1,645  
                                 
Basic net (loss) income per share   $ (0.64 )   $ 0.28     $ (1.24 )   $ 0.05  
Diluted net (loss) income per share   $ (0.64 )   $ 0.27     $ (1.24 )   $ 0.05  
                                 
Shares used in computing basic net (loss) income per share     34,325       33,201       34,199       32,593  
Shares used in computing diluted net (loss) income per share     34,325       34,467       34,199       33,295  
                                 
                                 
         
Silicon Graphics International Corp.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
         
    March 28,   June 28,
    2014   2013
ASSETS            
Current assets:            
  Cash and cash equivalents   $ 76,105   $ 175,181
  Current portion of restricted cash     2,276     531
  Accounts receivable, net     102,960     59,842
  Inventories     71,731     61,770
  Current portion of deferred cost of revenue     10,167     21,204
  Prepaid expenses and other current assets     18,411     14,094
    Total current assets     281,650     332,622
Non-current portion of restricted cash     2,078     2,853
Property and equipment, net     28,618     26,170
Goodwill and intangible assets, net     17,119     6,174
Non-current portion of deferred cost of revenue     6,392     7,281
Other assets     34,002     32,753
    Total assets   $ 369,859   $ 407,853
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
Current liabilities:            
  Accounts payable   $ 48,631   $ 51,531
  Accrued compensation     20,656     28,504
  Current portion of deferred revenue     93,641     86,357
  Other current liabilities     35,671     35,364
    Total current liabilities     198,599     201,756
Non-current portion of deferred revenue     46,884     50,362
Long-term income taxes payable     9,997     10,149
Retirement benefit obligations     12,006     11,542
Other non-current liabilities     8,621     3,790
    Total liabilities     276,107     277,599
Stockholders' equity     93,752     130,254
      Total liabilities and stockholders' equity   $ 369,859   $ 407,853
                   
                   
                             
Silicon Graphics International Corp.  
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES  
(In thousands, except per share data)  
(Unaudited)  
                             
        Three Months Ended  
        March 28, 2014  
        Net
Loss
   
EPS
   
Gross Profit
    Operating
Expenses
 
GAAP       $ (21,858 )   $ (0.64 )   $ 31,070     $ 52,872  
                                     
  Share-based compensation   (1)     3,268       0.10       431       (2,837 )
  Amortization of intangibles   (1)     1,047       0.03       441       (606 )
  Restructuring and severance   (2)     7,145       0.21       1,451       (5,694 )
  Excess and obsolete inventory   (2)     2,182       0.06       2,182       -  
  Other non-recurring items   (2)     819       0.02       2       (817 )
Non-GAAP       $ (7,397 )   $ (0.22 )   $ 35,577     $ 42,918  
                                     
Gross Margin                                    
  Gross margin on a GAAP basis                         25 %        
  Gross margin on a Non-GAAP basis                       29 %        
                                     
Weighted average shares used in computing:                          
  Basic and dilutive net loss per share             34,325                  
                                     
                                     
        Three Months Ended  
        March 29, 2013  
        Net
Income
   
EPS
   
Gross Profit
    Operating
Expenses
 
GAAP       $ 9,224     $ 0.27     $ 52,492     $ 51,006  
                                     
  Share-based compensation   (1)     2,809       0.08       391       (2,418 )
  Amortization of intangibles   (1)     923       0.03       255       (668 )
  Restructuring and severance   (2)     1,744       0.05       98       (1,646 )
  Income tax abatement   (2)     (8,447 )     (0.25 )     -       -  
Non-GAAP       $ 6,253     $ 0.18     $ 53,236     $ 46,274  
                                     
Gross Margin                                    
  Gross margin on a GAAP basis                         23 %        
  Gross margin on a Non-GAAP basis                       23 %        
                                     
Weighted average shares used in computing:                          
  Basic net income per share                 33,201                  
  Dilutive net income per share                 34,467                  
                                     
                                     
        Three Months Ended  
        December 27, 2013  
        Net
Loss
   
EPS
   
Gross Profit
    Operating
Expenses
 
GAAP       $ (13,684 )   $ (0.40 )   $ 33,483     $ 48,375  
                                     
  Share-based compensation   (1)     3,517       0.10       459       (3,058 )
  Amortization of intangibles   (1)     1,051       0.03       442       (609 )
  Restructuring and severance   (2)     1,921       0.06       1,171       (750 )
  Other non-recurring items   (2)     2,094       0.06       104       (1,990 )
  Gain on investment   (2)     (1,717 )     (0.05 )     -       -  
Non-GAAP       $ (6,818 )   $ (0.20 )   $ 35,659     $ 41,968  
                                     
                                     
Gross Margin                                    
  Gross margin on a GAAP basis                         29 %        
  Gross margin on a Non-GAAP basis                       31 %        
                                     
Weighted average shares used in computing:                          
  Basic and dilutive net loss per share             34,176                  
                                   
                                   
                             
Silicon Graphics International Corp.  
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES  
(In thousands, except per share data)  
(Unaudited)  
                             
        Nine Months Ended  
        March 28, 2014  
        Net
Loss
   
EPS
   
Gross Profit
    Operating
Expenses
 
GAAP       $ (42,365 )   $ (1.24 )   $ 102,801     $ 146,685  
                                     
  Share-based compensation   (1)     9,761       0.28       1,332       (8,429 )
  Amortization of intangibles   (1)     2,933       0.09       1,138       (1,795 )
  Restructuring and severance   (2)     9,995       0.29       2,655       (7,340 )
  Excess and obsolete inventory   (2)     5,424       0.16       5,424       -  
  Other non-recurring items   (2)     3,649       0.11       106       (3,543 )
  Gain on investment   (2)     (1,717 )     (0.05 )     -       -  
  Canada tax benefits   (2)     (611 )     (0.02 )     -       -  
Non-GAAP         (12,931 )   $ (0.38 )     113,456       125,578  
                                     
Gross Margin                                    
  Gross margin on a GAAP basis                         27 %        
  Gross margin on a Non-GAAP basis                       29 %        
                                     
Weighted average shares used in computing:                                    
  Basic and dilutive net loss per share                 34,199                  
                                     
        Nine Months Ended  
        March 29, 2013  
        Net
Income
   
EPS
   
Gross Profit
    Operating
Expenses
 
GAAP       $ 1,645     $ 0.05     $ 142,266     $ 150,653  
                                     
  Share-based compensation   (1)     7,816       0.23       1,262       (6,554 )
  Amortization of intangibles   (1)     2,839       0.08       778       (2,061 )
  Restructuring and severance   (2)     7,157       0.22       993       (6,164 )
  Other non-recurring items   (2)     (438 )     (0.01 )     -       438  
  Income tax abatement   (2)     (12,736 )     (0.38 )     -       -  
Non-GAAP       $ 6,283     $ 0.19     $ 145,299     $ 136,312  
                                     
Gross Margin                                    
  Gross margin on a GAAP basis                       24 %        
  Gross margin on a Non-GAAP basis                       24 %        
                                     
Weighted average shares used in computing:                                    
  Basic net income per share                 32,593                  
  Dilutive net income per share                 33,295                  
                                       
     
NOTE: This presentation includes certain financial measures not in conformity with Generally Accepted Accounting Principles in the United States (non-GAAP measures). Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
(1) Adjustments to exclude certain non-cash expenses such as share-based compensation and amortization of intangible assets.
(2) Adjustments to exclude the items discussed below because such items are either operating expenses which would not otherwise have been incurred by the company in the normal course of the company's business operations or are not reflective of the company's core results over time. These items may include recurring as well as non-recurring items.
     
  (a)
Restructuring Charges and severance - Restructuring charges consist primarily of severance expense, facility closure and relocation costs
  (b) Other non-recurring items include settlements and other items
  (c) Excess and obsolete charges related to our strategic withdrawal from legacy cloud infrastructure
     
     
                               
Silicon Graphics International Corp.  
TRENDED FINANCIAL DATA  
(In thousands)  
(Unaudited)  
                               
    Q1 FY13   Q2 FY13   Q3 FY13   Q4 FY13   Q1 FY14   Q2 FY14   Q3 FY14  
                                             
Total Revenue                                            
  Americas   $ 123,385   $ 112,358   $ 142,215   $ 118,550   $ 102,212   $ 62,648   $ 56,554  
  APJ     44,434     27,735     36,314     28,084     24,266     24,383     52,508  
  EMEA     25,062     31,133     54,059     23,898     21,041     29,029     15,221  
    Total revenue   $ 192,881   $ 171,226   $ 232,588   $ 170,532   $ 147,519   $ 116,060   $ 124,283  
Revenue                                            
  Compute   $ 130,800   $ 109,129   $ 160,367   $ 97,870   $ 88,842   $ 60,418   $ 72,805  
  Storage     15,515     18,911     26,773     31,324     19,978     16,916     13,122  
    Product Revenue     146,315     128,040     187,140     129,194     108,820     77,334     85,927  
  Service Revenue     46,566     43,186     45,448     41,338     38,699     38,726     38,356  
    Total revenue   $ 192,881   $ 171,226   $ 232,588   $ 170,532   $ 147,519   $ 116,060   $ 124,283  
Cost of revenue                                            
  Product   $ 122,597   $ 97,350   $ 152,523   $ 99,469   $ 88,692   $ 61,343   $ 70,759  
  Service     28,074     26,312     27,573     24,277     20,579     21,234     22,454  
    Total cost of revenue   $ 150,671   $ 123,662   $ 180,096   $ 123,746   $ 109,271   $ 82,577   $ 93,213  
Gross margin by Product and Service                                            
  Product Gross Margin     16.2 %   24.0 %   18.5 %   23.0 %   18.5 %   20.7 %   17.7 %
  Service Gross Margin     39.7 %   39.1 %   39.3 %   41.3 %   46.8 %   45.2 %   41.5 %
    Total gross margin     21.9 %   27.8 %   22.6 %   27.4 %   25.9 %   28.8 %   25.0 %
                                                 
                                                 
                             
Silicon Graphics International Corp.
CORE REVENUE TREND
(In thousands)
(Unaudited)
                             
    Q1 FY13   Q2 FY13   Q3 FY13   Q4 FY13   Q1 FY14   Q2 FY14   Q3 FY14
                                           
Core Federal                                          
  Federal   $ 68,156   $ 64,803   $ 100,809   $ 66,857   $ 76,374   $ 44,402   $ 45,013
  Low-Margin Deals     -     -     (18,555 )   -     -     -     -
    Total Core Federal (*)     68,156     64,803     82,254     66,857     76,374     44,402     45,013
Core International / Commercial                                          
  International / Commercial     79,347     68,200     99,627     58,074     55,259     62,482     77,215
  Low-Margin Deals     (15,334 )   -     (30,194 )   -     -     -     -
    Total Core International / Commercial (**)     64,013     68,200     69,433     58,074     55,259     62,482     77,215
                                           
      Total Core Revenue     132,169     133,003     151,687     124,931     131,633     106,884     122,228
                                           
                                           
Legacy Cloud     45,378     38,223     32,152     45,601     15,886     9,176     2,055
Low-Margin Deals     15,334     -     48,749     -     -     -     -
                                           
      Total Revenue   $ 192,881   $ 171,226   $ 232,588   $ 170,532   $ 147,519   $ 116,060   $ 124,283
                                           
(*) Core Federal revenue includes U.S. government customers, system integrators, and higher education institutions but excludes low-margin deals
(**) Core International / Commercial revenue includes HPC, Big Data, storage, and services, excludes revenue related to legacy cloud infrastructure and low-margin deals
 
 

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