SGI Settles Charges in Russian Lab Sale

Silicon Graphics Inc. said late Friday that it would pay a $1-million fine to settle charges that it sold computer equipment to a Russian nuclear lab without obtaining a license from the Department of Commerce.

According to the criminal complaint, the company failed to get a license when it twice in 1996 shipped equipment and upgrades to Chelyabinsk-70, described as a “nuclear laboratory operated by Russia’s Ministry of Atomic Energy.” Silicon Graphics gets about 35% of its revenue from U.S. military-related spending.

The company had been charged with two counts of violating the Export Administration Act, which expired in 1994. Export controls under the act have been extended. The settlement is subject to court approval. Sandra Escher, the firm’s general counsel, said the incident stemmed from miscommunication between the Moscow office and the Mountain View, Calif., headquarters.