FREMONT, Calif., Aug 31, 2010 (BUSINESS WIRE) -- SGI (NASDAQ:SGI), a trusted leader in technical computing, today
announced that it is resuming the stock repurchase program authorized by
the Board of Directors and originally announced in February of 2009,
providing for the repurchase of up to $40 million of the Company's stock.
"Our resumption of the previously announced repurchase program today
reflects the Board of Directors' continued confidence in the Company's
near and long-term financial and operating performance and commitment to
enhancing shareholder value," said SGI CEO Mark J. Barrenechea. "With
over $140 million in cash and equivalents, and no debt, we have the
strategic flexibility to resume the repurchase program, maintain
sufficient capital for operations, and continue to pursue acquisition
opportunities. At current price levels, we believe SGI's common stock
represents an attractive investment opportunity for the Company."
The duration of the repurchase program will continue to be open ended.
Under the resumed program, the company is able to purchase shares of
common stock through open market transactions and privately negotiated
purchases at prices deemed appropriate by management. The timing and
amount of repurchase transactions under this program will continue to
depend on market conditions, corporate and regulatory considerations,
alternative investment opportunities, and other relevant considerations.
The program may be discontinued at any time by the Board of Directors.
As of August 31, 2010, SGI has $39 million in remaining authorization
for the stock repurchase program and 30.7 million common shares
SGI, a trusted leader in technical computing, is focused on helping
customers solve their most demanding business and technology challenges.
for more information.
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements; including
statements regarding SGI's stock repurchase program. Any statements
contained herein that are not statements of historical fact may be
deemed forward-looking statements. Actual results may differ materially
from forward-looking statements due to a number of risks and
uncertainties including those associated with: the risk that SGI's stock
repurchase program may not have its desired or intended effect or many
not be implemented; SGI's more extensive international operations
following the acquisition of Silicon Graphics, Inc.; economic conditions
impacting the purchasing decisions of SGI's customers; SGI operates in a
very competitive market, and increased competition and competitors' new
products, have in the past, and may continue, to cause pricing pressure
on SGI's products, which would negatively affect SGI's gross and
operating margins, as well as other financial measures; a significant
portion of the Company's revenues has come from a limited number of
customers, and so the delay in placing an order, or the failure of a
significant customer to place additional orders, could have a
significant negative effect on SGI's financial performance; SGI relies
on sales to U.S. government entities and has limited experience dealing
with the U.S. government as a customer; SGI is unable to control
component pricing, such as what our suppliers charge for central
processing units, and, as has happened in the past, component pricing
can rise unexpectedly, negatively impacting SGI's gross margins as well
as other financial measures; and SGI may be required to write-off
additional significant amounts of excess and obsolete inventory.
Detailed information about these and other potential factors that could
affect SGI's business, financial condition and results of operations is
included in SGI's annual report on Form 10-K under the caption "Risk
Factors," in Part I, Item 1A of that report, filed with the Securities
and Exchange Commission ("SEC") on March 19, 2009, as updated by SGI's
subsequent filings with the SEC, all of which are available at the SEC's
Web site at http://www.sec.gov.
You are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date of this report. SGI
undertakes no responsibility to update the information in this report.
SGI is a registered trademark of Silicon Graphics International Corp. or
its subsidiaries in the US and other countries. All other trademarks are
property of their respective holders.
Erik Bylin, 510-933-8088
Copyright Business Wire 2010