SGI Reports Fiscal Third Quarter 2016 Financial Results 

MILPITAS, Calif., April 28 -- SGI (NASDAQ: SGI), a global leader in high-performance solutions for compute, data analytics and data management, has reported financial results for its fiscal third quarter ended March 25, 2016. The data in this release is presented on both a GAAP and non-GAAP basis and a reconciliation of GAAP to non-GAAP measures is included in the financial tables in this press release.

Total revenue for the third quarter was $132 million compared to $119 million in the third quarter of 2015. GAAP net income for the third quarter was $0.7 million, or $0.02 per share compared with a net loss of $9 million, or $0.25 per share in the third quarter of 2015. Non-GAAP net income in the third quarter was $1 million, or $0.03 per share compared with net loss of $3 million, or $0.10 per share in the same quarter a year ago. The Company exited the quarter with $103 million in cash.

"This quarter we achieved non-GAAP profitability for the second consecutive quarter despite lower than anticipated revenues," said Jorge Titinger, President and CEO. "While delays in federal business are significantly impacting our outlook for the year, our growing HPDA in-memory pipeline and newly-signed OEM agreement should help diversify and grow our revenue and profitability going forward."

Recent Highlights

• We signed our most significant agreement to date with Hewlett Packard Enterprise ("HPE"), the largest x86 vendor in the world. Through this agreement, HPE will OEM our in-memory UV technology for a new 8-socket system, more than doubling our served available market and significantly adding to our go-to-market capabilities.
• In our Earth Sciences vertical, TOTAL, one of the largest integrated oil and gas companies in the world, recently increased the compute power of its SGI Pangea supercomputer by adding the equivalent of more than 80,000 laptops and increasing storage capacity by the equivalent of 6 million DVDs.
• In our Manufacturing vertical, SKODA Auto launched an SGI UV and two ICE HPC systems into operation that enhance the car maker's ability to conduct complex product performance and safety.
• In our Life Sciences vertical, CSIRO (Commonwealth Scientific and Industrial Research Organization) recently installed an SGI UV3000 HPC system to handle massive data workloads. This will enable researchers across Australia to collaborate on projects in areas such as bioinformatics, genome assembly, climate modeling, nanoscience and image processing to help solve complex issues.

Outlook

Based on the revenue shortfall in our federal business, the company now expects fiscal 2016 results of:

• Revenue of at least $530 million
• Non-GAAP earnings per share of at least $0.03, excluding approximately $15 million of adjustments
• GAAP net loss per share of approximately $(0.40)

The company currently expects to achieve non-GAAP profitability for the fourth quarter based on revenue of at least $120 million.

About SGI

SGI is a global leader in high-performance solutions for compute, data analytics and data management that enable customers to accelerate time to discovery, innovation and profitability. Visit sgi.com for more information.

Source: SGI