Het eens zo tot de verbeelding sprekende Silicon Graphics heeft weer een teleurstellend kwartaal achter de rug. Bij een omzet van 564 miljoen dollar werd een verlies van $18 miljoen geboekt. SGI ondervindt in de markt voor servers en high-end workstations hevige concurrentie van Sun, HP, IBM, Dell en Compaq. Na het mislukken van de op NT gebaseerde Visual Workstations heeft SGI zich inmiddels tot Linux bekeerd:
The company, famed for its work in visualization and graphics, has been in the middle of a years-long restructuring and several quarters of unprofitability. The restructuring began with an embrace of Windows-based workstations, but delays in the strategy led to the departure of chief executive Rick Belluzzo, the demise of its fancy Windows product line, and then a new plan to bring the company back to its roots.SGI is in a difficult position, with delayed products and competitors eager to steal away its business, said Sarang Ghatpande, an analyst with D.H. Brown Associates. In addition, SGI is having a harder time convincing software writers to stay with the company.
"They're not sure SGI will stay in the business for the long run," Ghatpande said.