Image source: Silicon Graphics.

What: Shares of Silicon Graphics International (NASDAQ:SGI) plunged today, down by 33% as of noon E.T., after the company reported fiscal third-quarter earnings.

So what: Revenue in the third quarter added up to $132 million, translating into adjusted net income of $1 million, or $0.03 per share. The company finished the quarter with $103 million in cash on hand. CEO Jorge Titinger said this was the second consecutive quarter of non-GAAP profitability despite sales coming in below expectations.

Now what: Silicon Graphics' federal business has been hit by delays which are hurting the company's outlook for 2016. As a result, Silicon Graphics is also lowering its outlook for the year, which is disappointing investors. Revenue for the full year should be around $530 million, with adjusted earnings per share of $0.03. Next quarter should be profitable on a non-GAAP basis, with sales of $120 million.