8-K

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

 

FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported)
January 21, 2004
 
SILICON GRAPHICS INC.
(Exact name of Registrant as Specified in Charter)
 
Delaware
001-10441
94-2789662
(State or Other Jurisdiction
of Incorporation)		 (Commission File Number) (IRS Employer
Identification No.)
 
1500 Crittenden Lane
Mountain View, CA
94043-1351
(Address of Principal Executive Offices) (Zip Code)
   
Registrant’s telephone number, including area code
(650) 960-1980
 
1600 Amphitheatre Parkway  Mountain View, CA
(Former Name or Former Address, if Changed Since Last Report)




Item 7. Exhibits

        (c)

        99.1 Earnings Press Release dated January 21, 2004

Item 12. Results of Operations and Financial Condition

        On January 21, 2004, the Company announced its financial results for the fiscal quarter ended December 26, 2003. A copy of the press release announcing the Company’s financial results is included as an exhibit to and incorporated by reference in this Current Report on Form 8-K. This Current Report on Form 8-K is furnished pursuant to Item 12 of Form 8-K and is not intended to be incorporated by reference into future filings under the Securities Exchange Act of 1934 or the Securities Act of 1933 unless expressly incorporated by reference in such filings.



SILICON GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)

     

  Three Months Ended   Six Months Ended  
    Dec. 26,         Dec. 27,     Dec. 26,       Dec. 27,  
    2003         2002     2003       2002  
 
     
 
   
 
    (unaudited)     (unaudited)  
                               
Product and other revenue $ 141,883       $ 156,877   $ 266,749     $ 290,360  
Service revenue   96,030         105,861     189,191       214,096  
 
     
 
   
 
   Total revenue   237,913         262,738     455,940       504,456  
Costs and expenses:                              
   Cost of product and other revenue   78,204         89,382     149,468       171,006  
   Cost of service revenue   48,704         59,156     100,881       121,811  
   Research and development   30,226         42,920     65,575       85,563  
   Selling, general and administrative   69,845         74,086     148,444       160,863  
   Other operating expense, net (1)   12,986         5,817     37,222       14,261  
 
     
 
   
 
      Total costs and expenses   239,965         271,361     501,590       553,504  
 
     
 
   
 
                               
Operating loss   (2,052 )       (8,623 )   (45,650 )     (49,048 )
                               
Interest and other income (expense), net   (35,610 ) (2)     (7,448 )   (42,522 ) (2)   (8,008 )
 
     
 
   
 
                               
Loss before income taxes   (37,662 )       (16,071 )   (88,172 )     (57,056 )
                               
Income tax provision (benefit)   (294 )       926     (2,875 )     1,013  
 
     
 
   
 
                               
Net loss $ (37,368 )     $ (16,997 ) $ (85,297 )   $ (58,069 )
 
     
 
   
 
             
                               
Net loss per common share - basic and diluted $ (0.18 )     $ (0.08 ) $ (0.41 )   $ (0.29 )
 
     
 
   
 
Shares used in the calculation of net loss per common                              
share - basic and diluted   211,034         200,748     210,302       200,212  
 
     
 
   
 

(1) Represents charges for and changes in previously estimated restructuring costs.

(2) The three and six-month periods ended December 26, 2003 include a $23 million non-cash loss resulting from the extinguishment of the exchanged 5.25% Senior Convertible Notes due in 2004 and $8 million in additional non-cash expense due to the beneficial conversion feature of our 6.50% Secured Convertible Notes.




SILICON GRAPHICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

    December 26,     June 27,  
    2003     2003  
   
   
 
ASSETS   (unaudited)        
             
Current assets:            
   Cash and cash equivalents $ 107,511   $ 140,836  
   Short-term marketable investments   1,246     440  
   Short-term restricted investments   35,557     35,298  
   Accounts receivable, net   120,836     133,166  
   Inventories   72,095     71,426  
   Prepaid expenses and other current assets   45,467     51,727  
   
   
 
         Total current assets   382,712     432,893  
             
Restricted investments   903     1,430  
             
Property and equipment, net   88,987     108,062  
             
Other assets   98,723     107,469  
   
   
 
             
  $ 571,325   $ 649,854  
   
   
 
             
LIABILITIES AND STOCKHOLDERS' DEFICIT            
             
Current liabilities:            
   Accounts payable $ 76,631   $ 76,507  
   Accrued compensation   36,809     38,916  
   Income taxes payable   18,803     22,666  
   Other current liabilities   136,430     126,987  
   Current portion of long-term debt   22,477     16,894  
   Deferred revenue   141,189     149,434  
   
   
 
      Total current liabilities   432,339     431,404  
             
Long-term debt   302,839     291,956  
Other liabilities   76,478     91,385  
   
   
 
      Total liabilities   811,656     814,745  
             
Total stockholders' deficit   (240,331 )   (164,891 )
   
   
 
             
  $ 571,325   $ 649,854  
   
   
 






SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: January 21, 2004 By:
/s/ Sandra M. Escher
    Sandra M. Escher
    Senior Vice President and General Counsel




EXHIBIT INDEX

EXHIBIT NUMBER DOCUMENT DESCRIPTION
   
99.1 Earnings Press Release dated January 21, 2004