ACADEMIA

Silicon Graphics announced results for its second fiscal quarter which ended December 30, 2005. Revenue for the second quarter fiscal year 2006 was $144 million, gross margin was 41.7% and the operating loss was $28 million. For comparison, in the first quarter FY06, revenue was $170 million, gross margin was 37.8% and the operating loss was $26 million. The second quarter fiscal year 2006 net loss was $30 million or $0.11 per share, compared with a net loss of $32 million or $0.12 per share in the previous quarter. GAAP operating expenses for the second fiscal quarter were $88 million compared with $90 million in the first fiscal quarter 2006. Non-GAAP operating expenses were $78 million in the second quarter compared with $83 million in the first fiscal quarter excluding restructuring charges of $10 million and $7 million, respectively. "Our Q2 performance was consistent with our operating income guidance and within our EBITDA targets with strong margins offsetting lower than expected billings," said Jeff Zellmer, chief financial officer. "Looking forward, we will take a number of actions to improve our top-line results and continue to lower our cost structure." Unrestricted cash, cash equivalents and marketable investments on December 30, 2005 were $66 million as compared with $77 million at September 30, 2005.