MILPITAS, CA--(Marketwired - Aug 11, 2016) - SGI (
Total revenue for the fiscal fourth quarter was $123 million compared to $153 million in the fourth quarter of fiscal 2015. GAAP net income for the fiscal fourth quarter was $0.1 million, or breakeven per share compared with a net loss of $10 million, or $(0.28) per share in the fourth quarter of fiscal year 2015. Non-GAAP net income for the fiscal fourth quarter was $3 million, or $0.08 per share compared with a net loss of $4 million, or $(0.12) per share in the same quarter a year ago.
Total revenue for fiscal 2016 was $533 million compared with $521 million in fiscal 2015. GAAP net loss for fiscal 2016 was $11 million, or $(0.31) per share compared with a net loss of $39 million, or $(1.13) per share in fiscal 2015. Non-GAAP net income was $4 million, or $0.11 per share for fiscal 2016, compared with a net loss of $13 million, or $(0.36) per share for fiscal 2015.
Conference Call and Webcast Information
Due to the earlier announcement of Hewlett Packard Enterprise's acquisition of SGI, the previously scheduled conference call has been cancelled.
About SGI
SGI is a global leader in high-performance solutions for compute, data analytics and data management that enable customers to accelerate time to discovery, innovation, and profitability. Visit sgi.com (sgi.com/) for more information.
Connect with SGI on Twitter (@sgi_corp), YouTube (youtube.com/sgicorp), Facebook (facebook.com/sgiglobal) and LinkedIn (linkedin.com/company/sgi).
© 2016 Silicon Graphics International Corp. All rights reserved. SGI and the SGI logo are trademarks or registered trademarks of Silicon Graphics International Corp. or its subsidiaries in the United States and/or other countries. All other trademarks are property of their respective holders.
Use of Non-GAAP Financial Measures
This press release and the related earnings conference call include financial measures that are not determined in accordance with U.S. generally accepted accounting principles ("GAAP"), including non-GAAP gross margin, non-GAAP net income (loss) and non-GAAP basic and diluted net income (loss) per share. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and management exercises judgment in determining which items should be excluded in the calculation of non-GAAP measures. In addition, these non-GAAP measures may be different from non-GAAP measures used by other companies. While we believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP, we believe that non-GAAP measures are valuable in evaluating the company's operating performance and analyzing our business operations. Management may exclude the following items from one or more of non-GAAP measures: (1) share-based compensation; (2) amortization and impairment of intangible assets; (3) restructuring and severance charges; (4) gains or losses on sale of assets; and (5) other non-recurring costs. Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between GAAP and non-GAAP financial results is provided in this press release. The adjustments made should not be construed as an inference that all such adjustments or costs are unusual, infrequent or non-recurring. Investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in this release and SGI's SEC filings.
For a full reconciliation of historical non-GAAP measures referenced in this press release to the comparable measures under GAAP, please refer to the company's press releases on its website at www.sgi.com.
Silicon Graphics International Corp. | ||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||
June 24, | June 26, | June 24, | June 26, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||
Revenue | $ | 122,714 | $ | 152,904 | $ | 532,930 | $ | 521,259 | ||||||||||
Cost of revenue | 85,226 | 121,106 | 388,385 | 386,621 | ||||||||||||||
Gross profit | 37,488 | 31,798 | 144,545 | 134,638 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Research and development | 11,786 | 12,211 | 50,697 | 53,206 | ||||||||||||||
Sales and marketing | 12,823 | 14,655 | 51,525 | 61,544 | ||||||||||||||
General and administrative | 11,123 | 12,462 | 43,435 | 53,861 | ||||||||||||||
Restructuring | - | - | - | 116 | ||||||||||||||
Total operating expenses | 35,732 | 39,328 | 145,657 | 168,727 | ||||||||||||||
Income (loss) from operations | 1,756 | (7,530 | ) | (1,112 | ) | (34,089 | ) | |||||||||||
Interest expense, net | (1,888 | ) | (2,030 | ) | (7,932 | ) | (3,744 | ) | ||||||||||
Other expense, net | (1,385 | ) | (193 | ) | (2,760 | ) | (872 | ) | ||||||||||
Total other expense, net | (3,273 | ) | (2,223 | ) | (10,692 | ) | (4,616 | ) | ||||||||||
Loss before income taxes | (1,517 | ) | (9,753 | ) | (11,804 | ) | (38,705 | ) | ||||||||||
Income tax (benefit) provision | (1,651 | ) | (141 | ) | (626 | ) | 440 | |||||||||||
Net income (loss) | $ | 134 | $ | (9,612 | ) | $ | (11,178 | ) | $ | (39,145 | ) | |||||||
Basic net income (loss) per share | $ | 0.00 | $ | (0.28 | ) | $ | (0.31 | ) | $ | (1.13 | ) | |||||||
Diluted net income (loss) per share | $ | 0.00 | $ | (0.28 | ) | $ | (0.31 | ) | $ | (1.13 | ) | |||||||
Shares used in computing basic net income (loss) per share | 36,319 | 34,839 | 35,745 | 34,559 | ||||||||||||||
Shares used in computing diluted net income (loss) per share | 37,379 | 34,839 | 35,745 | 34,559 | ||||||||||||||
Share-based compensation by category is as follows: | ||||||||||||||||||
Cost of revenue - product | $ | 67 | $ | 78 | $ | 384 | $ | 452 | ||||||||||
Cost of revenue - service | 213 | 293 | 1,238 | 1,510 | ||||||||||||||
Research and development | 364 | 437 | 2,132 | 2,318 | ||||||||||||||
Sales and marketing | 299 | 489 | 1,675 | 2,771 | ||||||||||||||
General and administrative | 1,072 | 1,686 | 6,608 | 7,498 | ||||||||||||||
Total | $ | 2,015 | $ | 2,983 | $ | 12,037 | $ | 14,549 |
Silicon Graphics International Corp. | |||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(In thousands) | |||||||||
June 24, | June 26, | ||||||||
2016 | 2015 | ||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 92,946 | $ | 67,191 | |||||
Current portion of restricted cash | 2,109 | 2,109 | |||||||
Accounts receivable, net | 85,834 | 118,219 | |||||||
Inventories | 55,911 | 82,832 | |||||||
Current portion of deferred cost of revenue | 15,453 | 12,108 | |||||||
Prepaid expenses and other current assets | 11,698 | 17,547 | |||||||
Total current assets | 263,951 | 300,006 | |||||||
Non-current portion of restricted cash | 1,360 | 2,251 | |||||||
Property and equipment, net | 40,526 | 38,480 | |||||||
Goodwill and Intangible assets, net | 10,610 | 11,303 | |||||||
Non-current portion of deferred cost of revenue | 11,459 | 9,648 | |||||||
Other non-current assets | 28,223 | 25,896 | |||||||
Total assets | $ | 356,129 | $ | 387,584 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 55,761 | $ | 48,677 | |||||
Accrued compensation | 15,849 | 17,797 | |||||||
Short-term debt, net of unamortized debt issuance costs | 3,776 | 3,096 | |||||||
Current portion of deferred revenue | 64,392 | 96,473 | |||||||
Other current liabilities | 27,605 | 33,180 | |||||||
Total current liabilities | 167,383 | 199,223 | |||||||
Long-tem debt, net of unamortized debt issuance costs | 60,722 | 65,581 | |||||||
Non-current portion of deferred revenue | 46,619 | 43,781 | |||||||
Long-term income taxes payable | 7,529 | 8,420 | |||||||
Retirement benefit obligations | 10,868 | 9,330 | |||||||
Other non-current liabilities | 7,818 | 7,871 | |||||||
Total liabilities | 300,939 | 334,206 | |||||||
Stockholders' equity | 55,190 | 53,378 | |||||||
Total liabilities and stockholders' equity | $ | 356,129 | $ | 387,584 | |||||
Silicon Graphics International Corp. | |||||||||||||||||||||||||
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES | |||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
June 24, 2016 | |||||||||||||||||||||||||
Net | Gross Profit | Operating | |||||||||||||||||||||||
Income | EPS | Product | Service | Total | Expenses | ||||||||||||||||||||
GAAP | $ | 134 | $ | 0.00 | $ | 23,626 | $ | 13,862 | $ | 37,488 | $ | 35,732 | |||||||||||||
Share-based compensation | (1) | 2,015 | 0.05 | 67 | 213 | 280 | (1,735 | ) | |||||||||||||||||
Amortization of acquired intangibles | (1) | 187 | 0.01 | 175 | - | 175 | (12 | ) | |||||||||||||||||
Severance | (2) | 163 | - | - | 123 | 123 | (40 | ) | |||||||||||||||||
Other non-recurring items | (2) | 589 | 0.02 | - | 9 | 9 | (580 | ) | |||||||||||||||||
Non-GAAP | $ | 3,088 | $ | 0.08 | $ | 23,868 | $ | 14,207 | $ | 38,075 | $ | 33,365 | |||||||||||||
Gross Margin | |||||||||||||||||||||||||
Gross margin on a GAAP basis | 26.4 | % | 41.5 | % | 30.5 | % | |||||||||||||||||||
Gross margin on a Non-GAAP basis | 26.7 | % | 42.6 | % | 31.0 | % | |||||||||||||||||||
Weighted average shares used in computing: | |||||||||||||||||||||||||
Basic net income per share | 36,319 | ||||||||||||||||||||||||
Diluted net income per share | 37,379 | ||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
June 26, 2015 | |||||||||||||||||||||||||
Net | Gross Profit | Operating | |||||||||||||||||||||||
Loss | EPS | Product | Service | Total | Expenses | ||||||||||||||||||||
GAAP | $ | (9,612 | ) | $ | (0.28 | ) | $ | 16,262 | $ | 15,536 | $ | 31,798 | $ | 39,328 | |||||||||||
Share-based compensation | (1) | 2,983 | 0.09 | 78 | 293 | 371 | (2,612 | ) | |||||||||||||||||
Amortization of acquired intangibles | (1) | 223 | 0.01 | 205 | - | 205 | (18 | ) | |||||||||||||||||
Severance | (2) | 722 | 0.02 | - | 4 | 4 | (718 | ) | |||||||||||||||||
Other non-recurring items | (2) | 1,372 | 0.04 | - | 121 | 121 | (1,251 | ) | |||||||||||||||||
Non-GAAP | $ | (4,312 | ) | $ | (0.12 | ) | $ | 16,545 | $ | 15,954 | $ | 32,499 | $ | 34,729 | |||||||||||
Gross Margin | |||||||||||||||||||||||||
Gross margin on a GAAP basis | 13.7 | % | 45.3 | % | 20.8 | % | |||||||||||||||||||
Gross margin on a Non-GAAP basis | 13.9 | % | 46.5 | % | 21.3 | % | |||||||||||||||||||
Weighted average shares used in computing: | |||||||||||||||||||||||||
Basic and diluted net loss per share | 34,839 | ||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 25, 2016 | |||||||||||||||||||||||||
Net | Gross Profit | Operating | |||||||||||||||||||||||
Income | EPS | Product | Service | Total | Expenses | ||||||||||||||||||||
GAAP | $ | 739 | $ | 0.02 | $ | 22,137 | $ | 15,631 | $ | 37,768 | $ | 32,853 | |||||||||||||
Share-based compensation | (1) | 2,948 | 0.08 | 110 | 295 | 405 | (2,543 | ) | |||||||||||||||||
Amortization of acquired intangibles | (1) | 191 | - | 175 | - | 175 | (16 | ) | |||||||||||||||||
Severance | (2) | 723 | 0.02 | 5 | - | 5 | (718 | ) | |||||||||||||||||
Other non-recurring items | (2) | (3,485 | ) | (0.09 | ) | - | (21 | ) | (21 | ) | 3,442 | ||||||||||||||
Non-GAAP | $ | 1,116 | $ | 0.03 | $ | 22,427 | $ | 15,905 | $ | 38,332 | $ | 33,018 | |||||||||||||
Gross Margin | |||||||||||||||||||||||||
Gross margin on a GAAP basis | 23.0 | % | 43.8 | % | 28.6 | % | |||||||||||||||||||
Gross margin on a Non-GAAP basis | 23.3 | % | 44.6 | % | 29.0 | % | |||||||||||||||||||
Weighted average shares used in computing: | |||||||||||||||||||||||||
Basic net income per share | 35,954 | ||||||||||||||||||||||||
Diluted net income per share | 37,028 |
Silicon Graphics International Corp. | |||||||||||||||||||||||||
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES | |||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
June 24, 2016 | |||||||||||||||||||||||||
Net | Gross Profit | Operating | |||||||||||||||||||||||
(Loss) / Income | EPS | Product | Service | Total | Expenses | ||||||||||||||||||||
GAAP | $ | (11,178 | ) | $ | (0.31 | ) | $ | 85,577 | $ | 58,968 | $ | 144,545 | $ | 145,657 | |||||||||||
Share-based compensation | (1) | 12,037 | 0.34 | 384 | 1,238 | 1,622 | (10,415 | ) | |||||||||||||||||
Amortization of acquired intangibles | (1) | 662 | 0.02 | 600 | - | 600 | (62 | ) | |||||||||||||||||
Severance | (2) | 2,560 | 0.07 | 5 | 246 | 251 | (2,309 | ) | |||||||||||||||||
Other non-recurring items | (2) | (217 | ) | (0.01 | ) | - | (1 | ) | (1 | ) | 194 | ||||||||||||||
Non-GAAP | $ | 3,864 | $ | 0.11 | $ | 86,566 | $ | 60,451 | $ | 147,017 | $ | 133,065 | |||||||||||||
Gross Margin | |||||||||||||||||||||||||
Gross margin on a GAAP basis | 21.7 | % | 42.7 | % | 27.1 | % | |||||||||||||||||||
Gross margin on a Non-GAAP basis | 21.9 | % | 43.8 | % | 27.6 | % | |||||||||||||||||||
Weighted average shares used in computing: | |||||||||||||||||||||||||
Basic net loss per share | 35,745 | ||||||||||||||||||||||||
Diluted net income per share | 36,445 | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
June 26, 2015 | |||||||||||||||||||||||||
Net | Gross Profit | Operating | |||||||||||||||||||||||
Loss | EPS | Product | Service | Total | Expenses | ||||||||||||||||||||
GAAP | $ | (39,145 | ) | $ | (1.13 | ) | $ | 72,522 | $ | 62,116 | $ | 134,638 | $ | 168,727 | |||||||||||
Share-based compensation | (1) | 14,549 | 0.42 | 453 | 1,509 | 1,962 | (12,587 | ) | |||||||||||||||||
Amortization and impairment of acquired intangibles | (1) | 1,854 | 0.06 | 1,324 | - | 1,324 | (530 | ) | |||||||||||||||||
Restructuring and severance | (2) | 6,314 | 0.18 | 160 | 1,456 | 1,616 | (4,698 | ) | |||||||||||||||||
Other non-recurring items | (2) | 3,878 | 0.11 | - | 199 | 199 | (3,449 | ) | |||||||||||||||||
Non-GAAP | $ | (12,550 | ) | $ | (0.36 | ) | $ | 74,459 | $ | 65,280 | $ | 139,739 | $ | 147,463 | |||||||||||
Gross Margin | |||||||||||||||||||||||||
Gross margin on a GAAP basis | 19.3 | % | 42.8 | % | 25.8 | % | |||||||||||||||||||
Gross margin on a Non-GAAP basis | 19.8 | % | 45.0 | % | 26.8 | % | |||||||||||||||||||
Weighted average shares used in computing: | |||||||||||||||||||||||||
Basic and diluted net loss per share | 34,559 |
NOTE: This presentation includes certain financial measures not in conformity with Generally Accepted Accounting Principles in the United States (non-GAAP measures). Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. |
(1) Adjustments to exclude certain non-cash expenses such as share-based compensation and amortization and impairment of intangible assets. |
(2) Adjustments to exclude the items discussed below because such items are either operating expenses which would not otherwise have been incurred by the company in the normal course of the company's business operations or are not reflective of the company's core results over time. These items may include recurring as well as non-recurring items. |
(a) Restructuring charges and severance - Restructuring charges consist primarily of severance expense, facility closure and relocation costs. |
(b) Other non-recurring items include settlements, asset impairments, sale of assets, and other non-recurring items. |
Silicon Graphics International Corp. | ||||||||||||||
TRENDED FINANCIAL DATA | ||||||||||||||
(In thousands) | ||||||||||||||
(Unaudited) | ||||||||||||||
Q4 FY16 | Q4 FY15 | FY16 | FY15 | |||||||||||
Revenue | ||||||||||||||
Americas | $ | 78,391 | $ | 95,915 | $ | 295,518 | $ | 323,785 | ||||||
APJ | 25,138 | 31,919 | 129,973 | 124,163 | ||||||||||
EMEA | 19,185 | 25,070 | 107,439 | 73,311 | ||||||||||
Total revenue | $ | 122,714 | $ | 152,904 | $ | 532,930 | $ | 521,259 | ||||||
Revenue | ||||||||||||||
Federal (*) | $ | 53,134 | $ | 89,803 | $ | 231,657 | $ | 279,906 | ||||||
International / Commercial | 69,580 | 63,101 | 301,273 | 241,353 | ||||||||||
Total revenue | $ | 122,714 | $ | 152,904 | $ | 532,930 | $ | 521,259 | ||||||
Revenue | ||||||||||||||
Product | $ | 89,326 | $ | 118,606 | $ | 394,844 | $ | 376,294 | ||||||
Service | 33,388 | 34,298 | 138,086 | 144,965 | ||||||||||
Total revenue | $ | 122,714 | $ | 152,904 | $ | 532,930 | $ | 521,259 | ||||||
Cost of revenue | ||||||||||||||
Product | $ | 65,700 | $ | 102,344 | $ | 309,267 | $ | 303,772 | ||||||
Service | 19,526 | 18,762 | 79,118 | 82,849 | ||||||||||
Total cost of revenue | $ | 85,226 | $ | 121,106 | $ | 388,385 | $ | 386,621 | ||||||
Gross margin by Product and Service | ||||||||||||||
Product Gross Margin | 26.4 | % | 13.7 | % | 21.7 | % | 19.3 | % | ||||||
Service Gross Margin | 41.5 | % | 45.3 | % | 42.7 | % | 42.8 | % | ||||||
Total gross margin | 30.5 | % | 20.8 | % | 27.1 | % | 25.8 | % | ||||||
(*) Federal revenue includes U.S. government customers, system integrators, and higher education and research institutions | ||||||||||||||