Silicon Graphics announces loss, but..

Silicon Graphics Inc. on Monday posted a first-quarter loss of $37 million, or 20 cents per share, on revenues of $768 million, but said nothing about a widely anticipated restructuring plan.

In a statement released after the market close, company officials said they plan to implement a "program to reduce its operating expenses to a level consistent with current business conditions."

That was at odds with a variety of news reports that had said SGI would announce layoffs of up to 500 workers and perhaps even the resignation of CEO Ed McCracken.

The results were close to most analysts' expectations after the company's profit warning earlier this month. In the same quarter last year, SGI lost $22 million, or 13 cents per share.

"Our disappointing first-quarter results are due largely to a shortfall in our server business, particularly in the United States," said McCracken in a statement. "We are taking steps to strengthen our sales and marketing efforts in support of our server product family."

Including charges of $17 million related to Silicon Graphic's acquisition of ParaGraph International and other merger-related expenses of $2 million, the company reported a first-quarter loss of $56 million, or 31 cents a share.

Considering the magnitude of Monday's market meltdown, SGI's stock could have done worse. It closed down $2.13 per share to $15.50 before the earnings were announced.