2CPU.com » News » July 2006 » SGI sees end to Chapter 11

The company once known for their MIPS based computer systems are trying to mark a comeback. SGI, faced hard times during the end of the 1990's with competing x86 hardware from Intel & AMD. You may have remembered the company last year was delisted from the NYSE as reported in November '05. Today News.com has word that the Empire plans to strike back.

Computer maker Silicon Graphics Inc. said on Wednesday that it has amended a reorganization plan filed last month and that it expects to emerge from Chapter 11 bankruptcy protection in September. The amended plan calls for SGI to emerge as a public company with a new credit facility. Total debt would be reduced to $70 million from $345 million, the company said. Notes and debentures would be extinguished in exchange for the new common stock and cash, and rights to invest $50 million in additional shares of the reorganized company.

This company once gambled with Intel's iTanium processor line as their flagship product. They've also decided to skip AMD's Opteron after rumors of a highly spec NUMA based system featuring AMD's product. They've decided to go with Intel's Woodcrest products.

With so many decisions being made by company who were delisted from NYSE and slumped so many quarters. One has to wonder how they continue to stay a float to proclaim a future?

Vuke69 Bitpimp Posts: 341 Joined: 2001-03-16

#39097 Posted on: 07/06/2006 06:00 PM Watching SGI these days, is like having a dog that is starting to get really old. You remember with fondness, happier days. And you wish they were still doing better. But you know that the time is comming when they must be put down for their own good.

opus13 misanthrope. Posts: 1574 Joined: 2002-04-05

#39098 Posted on: 07/07/2006 06:08 AM Originally posted by vuke69: Watching SGI these days, is like having a dog that is starting to get really old. You remember with fondness, happier days. And you wish they were still doing better. But you know that the time is comming when they must be put down for their own good. whats sad is that upon first glance your post seems like another off-the-cuff dismissal. what's really sad is that you are quite right.

georg Registered User Posts: 28 Joined: 2002-12-06

#39099 Posted on: 07/10/2006 11:14 AM Once great SGI, known for innovation in both hardware and software, saw itself being effectively sold to the likes of Microsoft and Intel. If that is not a disgrace I don't know what it is. Whoever in charge took the lame decision of jumping on the Itanium "bandwagon" should be shot, no matter what financial position SGI were in at that time.

i_wolf labhair dom as gaelige Posts: 2034 Joined: 2002-11-19

#39100 Posted on: 07/10/2006 01:44 PM I don't think the Itanium is/was the reason for SGI's decline. It was more mismanagement than anything else coupled with an incapability to adapt to the modern IT market where comoditized hardware has caught up in leaps and bounds in terms of performance with niche hardware. SGI was always a niche company (in terms of average joe on the street). It never played to the masses, it had a steady cash cow as it thought in the niche scientific, video and multimedia industry's. I just don't think that SGI ever thought that Joe Bloggs would be capable of rendering a scene for the latest big budget hollywood film on relatively cheap hardware/software combo's. Hung like a donkey. Go like a horse!

AniMill Render Gardener Posts: 53 Joined: 2001-06-09

#39105 Posted on: 07/12/2006 02:43 AM I vividly remember the day SGI rolled out their Intel workstations with the on-board/non-upgradeable video accell. (BlueSomething?). I ran home and purchased some SGI stock... What WAS I thinking?! I quickly righted that mistake just as their stock took a dive. I've usually built my own machines with considerably greater value/performance, but I really wanted SGI to succeed - I even thought what a great combo an Apple/SGI merger might make. Today SGI is irrelivent (to my industry, film animation/FX), just look at the end-credits of CARS and see who Pixar identifies for their rendering CPU power: Intel. RIP Curtis Sponsler Creative Director | President - AniMill Offices in Ocoee,FL & Burbank, CA

2CPU.com » News » July 2006 » SGI sees end to Chapter 11