SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): June 20, 2000
SILICON GRAPHICS, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 1-10441 94-2789662
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(State or Other Jurisdiction of (Commission File Number) (IRS Employer
Incorporation or Organization) Identification No.)
1600 Ampitheatre Pkwy.
Mountain View, CA 94043-1351
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(Address of Principal Executive Offices) (Zip Code)
(650) 960-1980
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(Registrant's telephone number, including area code)
N/A
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 2. Acquisition or disposition of Assets.
On May 16, 2000, Silicon Graphics, Inc. ("SGI") announced that SGI's Board
of Directors (the "Board") approved the spin-off of MIPS Technologies, Inc.
("MIPS") and declared a stock dividend for all of SGI's shares of MIPS. The
dividend was distributed on June 20, 2000 to SGI shareowners of record as of
5:00 PM Eastern Daylight Time on June 6, 2000. SGI received no consideration in
connection with the distribution. At the time the dividend was declared, SGI
held 25,069,759 shares of MIPS Class B common stock.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(b) Pro forma financial information
The following unaudited pro forma condensed consolidated balance sheet as of
March 31, 2000 is presented as if the transaction had occurred as of that date.
The unaudited pro forma condensed consolidated statements of operations for the
nine months ended March 31, 2000 and the year ended June 30, 1999 are presented
as if the transaction had occurred July 1, 1999 and July 1, 1998, respectively.
The pro forma adjustments represent, in the opinion of management, all
adjustments necessary to present SGI's pro forma results of operations and
financial position in accordance with Article 11 of SEC Regulation S-X and are
based upon available information and certain assumptions considered reasonable
under the circumstances.
The pro forma condensed consolidated financial statements should be read in
conjunction with SGI's unaudited condensed consolidated financial statements and
notes thereto included in the Company's quarterly report on Form 10-Q for the
period ended March 31, 2000 and the audited consolidated financial statements
and notes thereto incorporated by reference in the Company's annual report on
Form 10-K for the year ended June 30, 1999. The pro forma information may not
necessarily be indicative of what the Company's results of operations or
financial position would have been had the transaction been in effect as of and
for the periods presented, nor is such information necessarily indicative of the
Company's results of operations or financial position for any future period or
date.
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SILICON GRAPHICS, INC.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
(Thousands)
<TABLE>
March 31, 2000
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Business to Pro forma
ASSETS Historical be disposed adjustment Pro forma
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Current assets:
Cash and cash equivalents $ 380,776 $ (79,120) $ -- $ 301,656
Short-term marketable investments 6,288 -- -- 6,288
Accounts receivable, net 358,625 (7,488) -- 351,137
Inventories 184,339 -- -- 184,339
Deferred tax assets 255,659 -- -- 255,659
Prepaid expenses and other current assets 130,189 (3,394) -- 126,795
------------ ------------ ----------- ------------
Total current assets 1,315,876 (90,002) -- 1,225,874
Restricted investments 125,304 -- -- 125,304
Property and equipment, net 472,533 (5,908) -- 466,625
Other assets 602,380 (848) 601,532
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$ 2,516,093 $ (96,758) $ -- $ 2,419,335
========= ============ =========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 145,980 $ (3,877) $ -- $ 142,103
Other current liabilities 719,216 (16,307) -- 702,909
------------ ------------ ----------- ------------
Total current liabilities 865,196 (20,184) -- 845,012
Long-term debt and other 381,143 (375) (9,258) A 371,510
Stockholders' equity
Preferred stock 16,998 -- -- 16,998
Common stock and additional paid-in-capital 1,440,534 (152,465) 2,239 A 1,290,308
Accumulated deficit (154,801) 76,266 7,019 A (71,516)
Treasury stock (70,493) -- -- (70,493)
Accumulated other comprehensive income 37,516 -- -- 37,516
----------- ------------ ----------- -----------
Total stockholders' equity 1,269,754 (76,199) 9,258 1,202,813
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$ 2,516,093 $ (96,758) $ -- $ 2,419,335
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SILICON GRAPHICS, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Thousands, except per share amounts)
Nine months ended March 31, 2000
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Business to be Pro forma
Historical disposed adjustment Pro forma
------------ -------------- ------------ ------------
Product and other revenue $ 1,303,577 $ (67,401) $ -- $ 1,236,176
Service revenue 493,506 -- -- 493,506
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Total revenue 1,797,083 (67,401) -- 1,729,682
Costs and expenses:
Costs of product and other revenue 791,498 (500) -- 790,998
Costs of service revenue 366,760 -- -- 366,760
Research and development 233,521 (20,054) -- 213,467
Selling, general and administrative 597,044 (12,529) -- 584,515
Other operating expense 110,861 -- -- 110,861
----------- ------------ ----------- ------------
Total costs and expenses 2,099,684 (33,083) -- 2,066,601
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Operating loss (302,601) (34,318) -- (336,919)
Loss on sale of Cray product line (20,837) -- -- (20,837)
Interest and other expense, net (3,577) (2,581) 7,571 A 1,413
----------- ------------ ----------- ------------
Loss before income taxes (327,015) (36,899) 7,571 (356,343)
Income tax provision (benefit) (105,062) (14,809) 2,801 B (117,070)
----------- ------------ ----------- ------------
Net loss (221,953) (22,090) 4,770 (239,273)
Preferred stock dividend requirement (394) -- -- (394)
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Net loss available to common stockholders $ (222,347) $ (22,090) $ 4,770 $ (239,667)
=========== ============ =========== ============
Net loss per common share - basic and diluted $ (1.22) $ (1.31)
Common shares outstanding - basic and diluted 182,847 182,847
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SILICON GRAPHICS, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Thousands except per share amounts)
Year ended June 30, 1999
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Business to be Pro forma
Historical disposed adjustment Pro forma
Product and other revenue $ 2,090,194 $ (71,710) $ -- $ 2,018,484
Service revenue 658,763 -- -- 658,763
----------- ------------ ----------- ------------
Total revenue 2,748,957 (71,710) -- 2,677,247
Costs and expenses:
Costs of product and other revenue 1,202,562 (125) -- 1,202,437
Costs of service revenue 400,688 -- -- 400,688
Research and development 380,346 (21,069) -- 359,277
Selling, general and administrative 907,612 (14,361) -- 893,251
Other operating expense (15,107) -- -- (15,107)
----------- ------------ ----------- ------------
Total costs and expenses 2,876,101 (35,555) -- 2,840,546
Operating loss (127,144) (36,155) -- (163,299)
Gain on sale of a portion of SGI interest in MIPS 272,503 -- 272,503
Interest and other expense, net (19,638) (1,614) 3,627 A (17,625)
----------- ------------ ----------- ------------
Income before income taxes 125,721 (37,769) 3,627 91,579
Income tax provision 71,892 (15,108) 1,378 B 58,162
----------- ------------ ----------- ------------
Net income 53,829 (22,661) 2,249 33,417
Preferred stock dividend requirement (525) -- -- (525)
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Net income available for common stockholders $ 53,304 $ (22,661) $ 2,249 $ 32,892
=========== ============ =========== ============
Net income per common share - basic $ 0.29 $ 0.18
Net income per common share - diluted $ 0.28 $ 0.17
Common shares outstanding - basic 186,374 186,374
Common shares outstanding - diluted 189,427 189,427
</TABLE>
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Notes to Pro Forma Condensed Consolidated Financial Statements
(A) Reflects the reversal of the minority interest in MIPS that was reflected
in SGI's Balance Sheet and Statements of Operations.
(B) Tax impact on minority interest adjustment provided at 37% and 38% for the
nine months ended March 31, 2000 and the year ended June 30, 1999,
respectively.
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 hereunto duly authorized.
Dated: June 30, 2000
SILICON GRAPHICS, INC.
By: /s/ Ron Curtola, Jr.
--------------------------
Name: Ron Curtola, Jr.
Title: Vice President,
Corporate Controller
