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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: July 24, 1997
(Date of earliest event reported)
SILICON GRAPHICS, INC.
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(Exact name of Registrant as specified in its charter)
Delaware 1-10441 94-2789662
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(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
2011 N. Shoreline Blvd., Mountain View, California 94043-1389
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415) 960-1980
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(Former name or former address, if changed since last report.)
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2
Item 5. Other Events.
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News Release dated July 24, 1997, filed as Exhibit 20 to this Current
Report on Form 8-K, is incorporated by reference herein.
Item 7. Financial Statements and Exhibits.
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Exhibit No. Description Method of Filing
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20 News Release dated July 24, 1997. Filed with this Report.
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3
SIGNATURES:
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized on the date indicated.
SILICON GRAPHICS, INC.
(Registrant)
By: /s/ William M. Kelly
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Name: William M. Kelly
Title: Senior Vice President
Corporate Operations
Dated: August 7, 1997
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EXHIBIT INDEX
Exhibit No. Description
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20 News Release dated July 24, 1997.
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SILICON GRAPHICS REPORTS FIRST BILLION DOLLAR QUARTER
New "O Series" Product Line Fuels Revenue Growth
MOUNTAIN VIEW, California, July 24, 1997 -- Silicon Graphics, Inc. (NYSE: SGI)
today announced results for its quarter and fiscal year ended June 30, 1997.
The Company's $1.2 billion in revenues marked its first billion dollar fiscal
quarter and represented a 28% increase over the quarter ended March 31, 1997.
Revenue growth was balanced across the company's business units and was
especially driven by the success of the Octane(TM) workstation and Origin(TM)
2000 scalable server families.
"This quarter was all about execution," commented Edward R. McCracken, chairman
and chief executive officer. "Our product transition is complete, we are
shipping our entire product line without significant constraints and, most
importantly, the new products are finding strong acceptance with customers. We
are entering the new fiscal year with our entire organization aligned to build
on this success and we are encouraged by our prospects for fiscal 1998."
Fourth quarter 1997 revenues represented a 19% increase over the $977 million in
revenues for the year ago quarter. Net income for the quarter increased to $102
million, or $0.56 per common share, compared with a net loss of $49 million or
net loss of $0.30 per common share in the year ago quarter. Pre-tax merger
charges related to the April 1996 acquisition of Cray Research were $6 million
for the quarter ended June 30, 1997 and $120 million in the same quarter a year
ago.
Total revenues for the fiscal year ended June 30, 1997 were $3.7 billion, a 25%
increase over the Company's results as reported for fiscal 1996. Including the
Cray Research revenue for the full fiscal year 1996 on a pro forma combined
basis, the Company's revenue grew 7%. Net income for fiscal 1997 was $79
million, or $0.43 per common share, compared with net income of $115 million, or
$0.65 per common share for fiscal 1996. Pre-tax merger charges were $53 million
for fiscal 1997 compared with $121 million for fiscal 1996.
The Company's consolidated backlog at June 30, 1997 was $537 million.
Silicon Graphics, Inc. is a leading supplier of high-performance interactive
computing systems. Silicon Graphics and its subsidiaries have offices
throughout the world and headquarters in Mountain View, California.
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SILICON GRAPHICS, INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996 (1)
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(UNAUDITED)
<S> <C> <C> <C> <C>
Product and other revenue $ 1,011,896 $ 835,264 $ 3,086,791 $ 2,553,128
Service revenue 150,421 142,109 575,810 368,188
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Total revenue 1,162,317 977,373 3,662,601 2,921,316
Costs and expenses:
Cost of product and other revenue 512,226 463,679 1,697,277 1,279,742
Cost of service revenue 85,396 84,716 325,269 202,697
Research and development 125,196 121,915 479,101 353,461
Selling, general and administrative 297,712 246,593 1,038,313 807,830
Merger-related expenses 3,110 101,918 10,757 103,193
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Total costs and expenses 1,023,640 1,018,821 3,550,717 2,746,923
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Operating income (loss) 138,677 (41,448) 111,884 174,393
Interest and other (expense) income, net (9,323) (385) (13,694) 14,395
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Income (loss) before income taxes 129,354 (41,833) 98,190 188,788
Provision for income taxes 26,951 6,871 19,639 73,751
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Net income (loss) $ 102,403 $ (48,704) $ 78,551 $ 115,037
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</TABLE>
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<TABLE>
<S> <C> <C> <C> <C>
Net income (loss) per common share $ 0.56 $ (0.30) $ 0.43 $ 0.65
Common and common equivalent shares
used in the calculation of net income
(loss) per common share 183,461 164,388 182,637 175,790
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</TABLE>
(1) Fiscal year 1996 amounts include the results of Cray Research, Inc. for the
fourth quarter only.
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SILICON GRAPHICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
June 30, June 30,
1997 1996
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<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 227,222 $ 257,080
Short-term marketable investments 60,109 38,316
Accounts receivable, net 1,131,647 978,874
Inventories 628,064 520,045
Prepaid expenses and other current assets 268,552 301,940
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Total current assets 2,315,594 2,096,255
Other marketable investments 86,961 161,541
Property and equipment, at cost 940,695 825,359
Accumulated depreciation and amortization (415,243) (360,480)
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Net property and equipment 525,452 464,879
Other assets 416,585 435,571
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$3,344,592 $3,158,246
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts and notes payable $ 299,684 $ 397,838
Other current liabilities 786,522 703,600
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Total current liabilities 1,086,206 1,101,438
Long-term debt and other 419,144 381,490
Stockholders' equity:
Preferred stock 16,998 16,998
Common stock 178 173
Additional paid-in capital 1,263,007 1,172,787
Retained earnings 537,238 461,311
Treasury stock -- (867)
Accumulated translation adjustment and other 21,821 24,916
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Total stockholders' equity 1,839,242 1,675,318
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$3,344,592 $3,158,246
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