Silicon Graphics International
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.
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 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.
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.
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.
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.