MILPITAS, CA — (Marketwired) — 10/28/15 — SGI (NASDAQ: SGI), a global leader in high performance solutions for compute, data analytics and data management, today reported financial results for its fiscal first quarter ended September 25, 2015. The data in this release is presented on both a GAAP and non-GAAP basis and a reconciliation of GAAP to non-GAAP measures is included in the financial tables in this press release.
Total revenue for the first quarter was $126 million compared to $112 million in the first quarter of 2015. GAAP net loss for the first quarter was $12 million, or $(0.33) per share compared with a net loss of $10 million, or $(0.30) per share in the first quarter of 2015. Non-GAAP net loss in the first quarter was $5 million, or $(0.15) per share compared with a net loss of $5 million, or $(0.14) per share in the same quarter a year ago. The company ended the quarter with nearly $100 million of cash.
“This quarter we made solid progress penetrating key High Performance Computing (HPC) vertical markets and had our strongest quarter to date in our in-memory business, where we added to our growing customer list and recently achieved industry-leading 32 socket certification with Oracle Linux,” said Jorge Titinger, President and CEO of SGI. “With our differentiated HPC and in-memory products, we are making inroads into new applications and customers and reinforcing our incumbent positions with repeat orders. We are excited at the opportunities that lay ahead in fiscal 2016.”
The latest addition to the SGI UV in-memory product server line, the 300RL, is now certified up to 32 sockets with Oracle Linux. This milestone makes the SGI system the first and only one to achieve certification at this level. This certification dramatically expands our addressable market for in-memory databases with support for the top two ISVs.
The SGI UV 300H single-node platform has deployed more than 200 Terabytes of total in-memory computing capacity to organizations running the SAP HANA® platform on over 50 systems worldwide.
Kyoto University–s Institute for Chemical Research, one of the world–s leading life science research labs, recently awarded SGI a contract for its next supercomputer. The system consists of two UV2000 16TB shared memory servers and Rackable Standard Depth clusters. In total, this hybrid system will provide over 9.4PB of storage with a large capacity Network File System.
NASA–s Pleiades supercomputer, based on SGI–s ICE X racks, made its debut at number five in the world on the HPCG benchmarking list, the new metric for supercomputing performance. This supercomputer–s upgrades include 4,176 12-core Haswell processors, each performing twice as many scientific calculations per second as the previous generation of Intel processors.
Consistent with its previously provided outlook for the full year, the company continues to expect:
Revenue in the range of $600 to $625 million, or year-over-year growth of 15% – 20%;
Non-GAAP gross margin between 26% and 27%;
Non-GAAP operating expenses flat to down 5% year-over-year;
Non-GAAP net income in the range of $0.25 to $0.35 per share after excluding approximately $17 million of adjustments; and
GAAP net loss in the range of $(0.11) to $(0.21) per share.
For the second quarter, the company currently expects to achieve non-GAAP profitability based on approximately $140 million of revenue.
SGI–s first quarter fiscal 2016 financial results conference call is scheduled to take place on Wednesday, October 28, 2015 at 1:30 p.m. PT (4:30 p.m. ET). A live webcast of the company–s earnings conference call will be available simultaneously on the Investor Relations section of the company–s website at investors.sgi.com. A replay of the webcast will also be available approximately two hours after the conclusion of the conference call and will remain available until next quarter.
The earnings conference call can also be accessed by dialing (888) 463-5422 (toll-free) or (970) 315-0484 (international) and entering the confirmation code: 51529588. An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available for five days and can be accessed by dialing (855) 859-2056 (toll-free) or (404) 537-3406 (international) and entering the confirmation code: 51529588.
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The statements made in this press release regarding projected financial results, including SGI–s growth strategy, outlook regarding future profitability and positive cash generation, as well as certain statements made in the earnings conference call, are forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Actual results could differ materially from those described by these statements due to a number of factors, including, but not limited to the following: sales to U.S. government entities, which are subject to the government–s budgetary constraints; customer concentration risks; fluctuations in the buying patterns and sizes of customer orders from one quarter to the next; increased competition causing SGI to sell products or services at lower margins than expected; lengthy acceptance cycles of SGI–s products by certain customers and their effects on SGI–s revenue and liquidity; development or product delivery delays, delays in obtaining necessary components from suppliers or delays in customer acceptance once products are delivered; the addition of new customers or loss of existing customers; unexpected changes in the price for, and the availability of, components from SGI–s suppliers; SGI–s ability to enhance its products with new and better designs and functionality; actions taken by competitors, such as new product announcements or introductions or changes in pricing; market acceptance of newer products; and risks related to SGI–s term loan. Some of these risks and uncertainties are described in more detail in SGI–s most recent Form 10-K and other filings with the Securities and Exchange Commission (“SEC”) and are available at the SEC–s web site at . Forward-looking statements are made based on information available to the company on the date of this press release. The company assumes no obligation to update the information in this press release.
This press release and the related earnings conference call include financial measures that are not determined in accordance with U.S. generally accepted accounting principles (“GAAP”), including non-GAAP gross margin, non-GAAP net income (loss) and non-GAAP basic and diluted net income (loss) per share. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and management exercises judgment in determining which items should be excluded in the calculation of non-GAAP measures. In addition, these non-GAAP measures may be different from non-GAAP measures used by other companies. While we believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP, we believe that non-GAAP measures are valuable in evaluating the company–s operating performance and analyzing our business operations. Management may exclude the following items from one or more of non-GAAP measures: (1) share-based compensation; (2) amortization and impairment of intangible assets; (3) restructuring and severance charges; (4) excess and obsolete inventory write-offs; (5) gains or losses on investments; and (6) other non-recurring costs. Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between GAAP and non-GAAP financial results is provided in this press release. The adjustments made should not be construed as an inference that all such adjustments or costs are unusual, infrequent or non-recurring. Investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in this release and SGI–s SEC filings.
For a full reconciliation of historical non-GAAP measures referenced in this press release or today–s presentation to the comparable measures under GAAP, please refer to the company–s press releases on its website at .
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SGI Investor Relations
Annie Leschin
(415) 775-1788
Ben Liao
(669) 900-8090
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