HP Executive to Lead Silicon Graphics

Silicon Graphics Inc. named the head of Hewlett-Packard Co.’s computer unit as its chairman and chief executive Friday in a bid to revive the flagging high-tech company. Richard Belluzzo, the No. 2 executive at Palo Alto-based HP, replaces Ed McCracken, who had announced that he would step down when the company chose a new CEO. Analysts lauded the choice of Belluzzo, who is expected to boost SGI with his no-nonsense management abilities. Based in Mountain View, SGI is best known for its computer workstations used to create special effects for such movies as “Jurassic Park” and “Twister.” It also makes servers, or computers that control networks of desktop machines. This week the company reported a loss of $31 million, or 17 cents per diluted share, for the quarter ending Dec.31. The results reflected charges of $53 million, mostly to pay for a restructuring that included hundreds of layoffs. Silicon Graphics’ stock surged on the news, gaining $2.44 to close at $13.69, and Hewlett-Packard shares fell 50 cents to close at $61.63 on the New York Stock Exchange.