MILPITAS, Calif., Oct. 29 — SGI (NASDAQ: SGI), a global leader in high performance solutions for compute, data analytics and data management, has 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.”

Recent Highlights

• 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.

Outlook 

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.

About SGI

SGI is a global leader in high performance solutions for compute, data analytics and data management that enable customers to accelerate time to discovery, innovation and profitability. Visit sgi.com for more information.

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Source: SGI