Silicon Graphics Reports Larger-Than-Expected Loss
Silicon Graphics Inc., a top maker of computer workstations, reported a larger-than-expected fiscal fourth-quarter loss Thursday as sales of its supercomputers and workstations fell.
The struggling Mountain View-based company said it lost $57 million, or 31 cents a share, before charges in the quarter ended June 30, compared with net income of $102.4 million, or 54 cents a diluted share, in the year-ago period. Analysts expected Silicon Graphics to lose 25 cents a share, according to First Call Corp.
The weaker-than-expected results show how much more work Silicon Graphics’ new Chief Executive Rick Belluzzo has to do to fix the ailing company, whose high-powered computers are best known for producing the realistic dinosaurs in “Jurassic Park.” Belluzzo had been the No. 2 executive at Hewlett-Packard.
Silicon Graphics said sales fell 33% to $773.6 million from $1.16 million a year ago.
Shares rose 50 cents to close at $14.13 on the New York Stock Exchange.
The company reported results after the close of regular U.S. trading.
At a Glance:
* Milpitas-based Adaptec Inc.’s fiscal first-quarter profit fell on sliding sales of its adapter cards used to link PCs to printers and other devices, and the company warned that second-quarter results also will be weak.
Profit before charges for the quarter ended June 20 fell to $11.0 million, or 10 cents a share, from net income of $59.7 million, or 51 cents, a year earlier. Results missed analysts’ estimates of 14 cents. Revenue fell 33% to $180.6 million from $271.4 million.
* Goleta-based Applied Magnetics Corp. reported a fiscal third-quarter net loss of $35.6 million, or $1.50 per diluted share, compared with net income of $21.0 million, or 75 cents, a year ago. The maker of magnetic recording heads reported sales of $33.6 million, versus $124.1 million a year ago.
* Calabasas Hills-based Cheesecake Factory Inc. reported second-quarter net income of $3.9 million, or 19 cents per diluted share, on revenue of $64.3 million, compared with $2.4 million, or 14 cents, on revenue of $51.0 million, a year ago.
* Franklin Resources Inc. of San Mateo, said fiscal third-quarter earnings rose at a lower-than-expected 14%. Franklin, America’s largest publicly traded mutual fund company, said net income rose to $131 million, or 52 cents a diluted share, in the quarter ended June 30 from $111.2 million, or 44 cents, in the year-ago period. The profit was below the average forecast of 54 cents a share.
* South San Francisco-based Galoob Toys Inc. reported a second-quarter net loss of $691,000, or 4 cents per diluted share, on revenue of $40.0 million, compared with net income of $900,000, or 5 cents, on revenue of $52.4 million a year ago.
* Internet service Infoseek Corp. said revenue more than doubled in its second quarter. The Sunnyvale company, which recently sold a stake to Walt Disney Co., also reported an operating loss that was smaller than what most analysts were forecasting.
Infoseek said its second-quarter revenues totaled $17.1 million, up from $7.8 million in the year-ago period. Its net loss of $1.3 million, or four cents a share, compared with a 7-cent-per-share consensus among analysts.
* Athletic footwear maker K-Swiss Inc., based in Chatsworth, reported second-quarter net income of $2.3 million, or 40 cents per diluted share, on revenue of $41.0 million, compared with a net loss of $379,000, or 6 cents, on revenue of $28.4 million a year ago.
* Milpitas-based LSI Logic Corp., one of the largest specialty chip makers, said second-quarter net income fell 30% to $32 million, or 23 cents a diluted share, from $45.8 million, or 32 cents, a year ago. The results matched analyst forecasts of 23 cents. Revenue fell slightly to $330.1 million from $332.0 million.
* San Leandro-based outdoor apparel maker North Face Inc. reported second-quarter net loss of $1.7 million, or 14 cents per share, compared with a net loss of $2.0 million, or 18 cents, a year ago. The company reported revenue of $42.5 million, compared with $31.1 million, a year ago.
* Richmond-based Pixar Animation Studios reported second-quarter net income of $2.1 million, or 4 cents per diluted share, on revenue of $3.8 million, compared with $9.0 million, or 19 cents, on revenue of $14.4 million a year ago.
* Los Angeles-based Reliance Steel & Aluminum Co. reported record second-quarter net income, which rose 49% to $12.5 million, or 66 cents per diluted share, compared with $8.4 million, or 55 cents, including a one-time $0.6 million, or 4-cent after-tax gain on the sale of real estate, for the year-ago period.
Earnings per share have been restated to reflect a 3-for-2 stock split effective June 27, 1997.
Reliance reported revenue of $326.2 million, up 34% from $243.8 million a year ago.
* Calabasas-based interactive software maker THQ Inc. reported a second-quarter net loss of $4.3 million, or 61 cents per diluted share, including a one-time acquisition charge, on revenue of $29.3 million, compared with net income of $994,000, or 14 cents, on revenue of $12.3 million a year ago.
* Transamerica Corp.’s second-quarter earnings rose 14% as the San Francisco-based financial services company reported gains in its life insurance business.
Transamerica, which offers life insurance to consumers and lending, leasing and real estate services to commercial clients, said profit excluding gains from investment sales rose to $124.3 million, or $1.90 a diluted share, from $108.9 million, or $1.59, a year ago. That exceeded the $1.71 expected by analysts.
* Santa Monica-based Veterinary Centers of America Inc. reported a 40% rise in second-quarter net income of $6.1 million, or 28 cents per diluted share, on record revenue of $76.1 million, compared with net income of $4.4 million, or 21 cents, on revenue of $63.2 million.
