PC Industry Watch: Silicon Graphics

  • Posted: 26 May 2002 02:31 PM

    This thread is designed to feature news and foster discussion about Silicon Graphics and its activities in the graphics, imaging and research areas of the PC business.

    Silicon Graphics, once a high-flying, high-end technology company, now finds its stock trading at about five percent of its all-time high set back in the mid 90’s. Its recent closing price of $2.90 per share represents a dramatic move up from its 52-week low of $.31 per share.

    Over the years and again more recently when SGI was trading near its 52-week low, many Mac enthusiasts have mused about Apple acquiring Silicon Graphics for its high-end imaging products.

    Although Apple and Silicon Graphics serve markets that overlap in entertainment, for the most part the two companies are in vastly different areas of the PC market. At a current market value of about $580 million, an acquisition of SGI by Apple would be considered not only expensive, but would lead to few efficiencies to cover the costs of the acquisition.

    Silicon Graphics has revamped its business model after several difficult years of declining revenues and market share and increasing competition. The company now has niche positions in the medical, entertainment and the government and defense sectors of the PC/workstation business.

         
  • Posted: 26 May 2002 02:46 PM #1

    Silicon Graphics and its recent activities were covered in the 5/20 Apple Stock Watch Report .

         
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    Posted: 26 May 2002 05:09 PM #2

    I think SGI would make a great candidate for renewed Mac OS (X) licensing.  My opinion is that if Apple ever resumes cloning, it will be to (already existing) companies that can clearly create or broaden new markets for the Mac OS.  SGI still occupies spaces where Apple currently doesn’t compete, though surely the entertainment industry is one where Apple is moving all by itself.

    Alias|Wavefront would be another excellent acquisition, though for entirely different reasons.

    It’s too bad that SGI already sold off some of its patent portfolio to Microsoft.  :-(

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    Editor - The Mac Observer

    Favorite (but less relevant than it used to be) Quote: Microsoft’s tyranny lies not in its success, but in the way it achieved and maintains that success.

         
  • Posted: 11 July 2002 09:43 PM #3

    SHI has fallen to an 8-month low are issuing an earnings warning earlier the week. The shares lost more than 1/3 of their value following the warning. Despite new orders from defense and homeland security agencies, the company has been hit hard along with other computer makers by sluggish sales in the enterprise markets.

         
  • Posted: 12 August 2002 10:21 AM #4

    As of today 8/12, SGI has worked itself up from its 52-week low of $.31 to today’s midday price of $1.36 per share. The company, to its credit, continues to win defense industry and government contracts.

         
  • Posted: 28 September 2002 07:38 AM #5

    SGI’s share price has been trending down ovr the past several weeks. The stock closed on Friday at $.89, giving the company a market value of about $178 million.

         
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    Posted: 28 September 2002 09:29 AM #6

    [quote author=“DawnTreader”]SGI’s share price has been trending down ovr the past several weeks. The stock closed on Friday at $.89, giving the company a market value of about $178 million.

    At $178 million do you still think:
    [quote author=“DawnTreader”]an acquisition of SGI by Apple would be considered not only expensive, but would lead to few efficiencies to cover the costs of the acquisition

    I know its not all about products but my dad just got an older SGI that just flys at 3d rendering. They are proving the mhz myth is a myth with there 300mhz monster computers. I think SGI would be a great company for Apple to buy, most of there software already is for UNIX and I don’t think it would take much to revamp it for OS X. Plus they have made some very impressive motherboards that I would love to see incorporated into new Macs.

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    - Gavin (DrShakagee)

         
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    Posted: 28 September 2002 01:35 PM #7

    I am inclined to agree with you, Dr. Shakagee.

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    Editor - The Mac Observer

    Favorite (but less relevant than it used to be) Quote: Microsoft’s tyranny lies not in its success, but in the way it achieved and maintains that success.