Silicon Graphics Loses $49 Million With Purchase of Cray Research

Silicon Graphics said Wednesday that it lost $49 million in its fiscal fourth quarter after taking a charge of $102 million for its acquisition of supercomputer company Cray Research.

But the Mountain View, Calif.-based computer systems maker on its own enjoyed record profit, exceeding analysts’ expectations.

The company also announced that its president, Thomas Jermoluk, has resigned effective immediately to head At Home Corp., a new firm backed by major cable TV companies to develop cable access to the Internet for consumers.

Silicon Graphics’ loss amounted to 30 cents per share for the period ended June 30.

Excluding Cray, Silicon Graphics earned $81 million, or 46 cents a share. That’s a 53% gain over net income of $53 million, or 30 cents, a year ago.

A number of analysts had forecast a profit of 42 cents.

Chief Executive Edward McCracken will assume Jermoluk’s duties as president.