Silicon Graphics International
The 10-second takeaway
For the quarter ended Dec. 30 (Q2), Silicon Graphics International met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Silicon Graphics International reported revenue of $195.2 million. The four analysts polled by S&P Capital IQ expected a top line of $196.0 million. Sales were 10.0% higher than the prior-year quarter's $177.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.04. The four earnings estimates compiled by S&P Capital IQ predicted $0.26 per share on the same basis. GAAP EPS were -$0.07 for Q2 compared to $0.12 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 26.7%, 280 basis points worse than the prior-year quarter. Operating margin was -1.0%, 610 basis points worse than the prior-year quarter. Net margin was -1.2%, 330 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $177.0 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $746.9 million. The average EPS estimate is $0.67.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Silicon Graphics International is buy, with an average price target of $20.67.
Over the decades, small-cap stocks like Silicon Graphics International have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Silicon Graphics International to My Watchlist.