Silicon Graphics International Beats on Both Top and Bottom Lines

Silicon Graphics International (Nasdaq: SGI  ) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 30 (Q3), Silicon Graphics International beat expectations on revenues and earnings per share.

Compared with the prior-year quarter, revenue grew significantly and GAAP loss per share shrank. The non-GAAP profit was a surprise, as analysts had predicted a loss.

Gross margins dropped, operating margins improved, net margins improved.

Revenue details
Silicon Graphics International reported revenue of $199.4 million. The three analysts polled by S&P Capital IQ foresaw revenue of $189.9 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $143.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.11. The three earnings estimates compiled by S&P Capital IQ averaged -$0.03 per share. GAAP EPS were -$0.04 for Q3 versus -$0.05 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 25.8%, 240 basis points worse than the prior-year quarter. Operating margin was -0.7%, 60 basis points better than the prior-year quarter. Net margin was -0.6%, 60 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $208.9 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $772.9 million. The average EPS estimate is $0.24.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Silicon Graphics International is outperform, with an average price target of $14.67.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 11, 2012, at 12:45 AM, spirts wrote:

    Why did the stock get killed today?

  • Report this Comment On May 11, 2012, at 5:37 AM, steveat wrote:

    late release of their storage product which greatly affected revenues and they ended up with something like -.37 cents a share

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