Silicon Graphics files for Chapter 11 bankruptcy protection
Monday, May 08, 2006 - 08:41 AM EDT"Silicon Graphics Inc., a long-struggling maker of high-performance computers, filed for Chapter 11 bankruptcy protection. A group of bondholders agreed to trade their debt for a stake in the company, which filed for Chapter 11 protection Monday morning in U.S. Bankruptcy Court in New York. Silicon Graphics is known for desktop workstations and larger server systems that are favored by engineers and others who demand sophisticated graphics, including Hollywood studios. But the company has suffered a long slide, partly due to competition from machines based on standard components used in personal computers," The Wall Street Journal reports.
"Silicon Graphics' stock was recently delisted from the New York Stock Exchange for trading below a minimum threshold of $1 a share, and now trades on the small-cap OTC Bulletin Board," The Wall Street Journal reports. "On Monday, the company said its fiscal third-quarter loss narrowed to $42.7 million, or 16 cents a share, from $44.5 million, or 17 cents a share, a year earlier. Revenue fell to $108.1 million from last year's $159.2 million."
Full article here.
[Thanks to MacDailyNews Reader "Fred Mertz" for the heads up.]
MacDailyNews Take: An opportunity for Apple or just something to avoid?
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I may be the only one SAYING this, but I am sad to see SGI go (not that bankruptcy == going-out-og-business but it isn't a good sign either).
In college, we had a NeXT lab where I got my first taste of "OS X alpha" if you will. Next door was the SGI lab where we did some really cool stuff with vector art and multi-processor computing.
Just like Apple, SGI was one of those who fought to innovate for teh select few (research scientists in SGI's case) rather than try to take the spreadsheet market from Microsoft.