http://www.businesswire.com/news/home/20091104006348/en
Strong Revenue and Gross Margin Performance
FREMONT, Calif.--(Business Wire)--
SGI (NASDAQ:SGI), a global leader in HPC and data center solutions, today
announced financial results for its first quarter of fiscal 2010, which ended
September 25, 2009.
Q1 GAAP revenue was $100.1 million, compared to $58.4 million in the prior
quarter and $65.1 million in the comparable year ago quarter. Non-GAAP revenue
was $122.7 million, compared to $60.5 million in the prior quarter. The company
did not report non-GAAP revenue in the comparable year ago quarter. On a
sequential basis, GAAP revenue grew by 71% and non-GAAP revenue grew by 103%.
Q1 GAAP gross margin was 22.3%, compared to 8.7% in the prior quarter and 17.0%
in the comparable year ago quarter. Non-GAAP gross margin was 28.4%, compared to
15.2% in the prior quarter and 17.4% in the comparable year ago quarter. On a
sequential basis, GAAP gross margin percentage grew by 156% and non-GAAP gross
margin percentage grew by 87%.
"SGI delivered a solid quarter in terms of revenue, gross margin and operations.
We increased revenue by 103% and expanded gross margin up to a record 28.4%,
both on a non-GAAP basis," stated Mark J. Barrenechea, president and CEO of SGI.
"Operationally, our integration is ahead of schedule in most key areas. We also
introduced new products that could expand our addressable market by over $1.7
billion while investing for long-term growth."
Q1 GAAP net loss from continuing operations was $0.60 per share, compared to
GAAP net loss of $0.17 per share for the comparable year ago quarter. Q1
Non-GAAP net loss was $0.09 per share, compared to a non-GAAP net loss of $0.04
per share for the comparable year ago quarter. (Please see the financial tables
accompanying this release for details on all non-GAAP metrics and their
reconciliation to GAAP measures.)
SGI ended Q1 with $123.5 million in cash, cash equivalents, long-term and
short-term investments and restricted cash, compared to $139.5 million at the
end of the prior quarter.
Business and Financial Highlights
SGI maintains the 2010 fiscal year internal planning objectives discussed in the
prior quarter, and further highlights the following:
* Revenue increased by 103% from the prior quarter and 88% from the comparable
year ago quarter on a non-GAAP basis, in part due to the acquisition of the
assets of Silicon Graphics, Inc.
* Gross margin of 28.4% on a non-GAAP basis.
* Services 33% of revenue and International 31% of revenue, both on a non-GAAP
basis.
* Storage 16% of revenue on a non-GAAP basis.
* Strong industry performance and diversification: Cloud, Defense, Intelligence,
Financial Services, and Manufacturing.
* Strong customer performance including: British Telecom, ONERA, Naval Research
Laboratories, Audi, Skoda, Amazon, Spotify and Microsoft.
* Expanded addressable market by $1.7 billion with the introduction of Octane
III and CloudRack X2, targeting personal supercomputing and workgroup markets.
* Completed headquarters consolidation to Fremont, CA.
* Completed manufacturing consolidation to Chippewa Falls, WI.
* Set a world record in benchmark testing while also beating IBM, HP and Sun by
a more than a factor of two in every test. The Altix 4700 claimed three Standard
Performance Evaluation Corporation (SPEC) benchmark world records at the Leibniz
Supercomputing Centre (LRZ).
Conference Call Information
SGI will discuss these financial results in a conference call at 2:00 p.m. PT
today. The public is invited to listen to a live web cast of the call on the
Investor Relations section of the Company`s website at investors.sgi.com. A
replay of the web cast will be available approximately two hours after the
conclusion of the call and remain available until the next earnings call. An
audio replay of the conference call will also be made available approximately
two hours after the conclusion of the call. The audio replay will remain
available for five days and can be accessed by dialing 719-457-0820 or
888-203-1112 and entering the confirmation code: 9725418.
About SGI
SGI is a global leader in cloud computing and high-performance computing and is
dedicated to solving our customers` most demanding technology and business
challenges. Visit www.sgi.com for more information.
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements; including statements
regarding SGI`s internal plan for 2010, anticipated product performance, general
business outlook and integration of the businesses and assets acquired from
Silicon Graphics, Inc. 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 businesses and assets
acquired from Silicon Graphics, Inc., which may not be successfully integrated
and SGI`s more extensive international operations following this acquisition;
economic conditions impacting the purchasing decisions of SGI`s customers; SGI
operates in a very competitive market, and increased competition has 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 come from a small
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; orders for SGI`s products can be received at the end of the
quarter, and so a delay in placing an order in the fourth quarter could have a
significant negative effect on SGI`s financial performance for the year; SGI is
unable to control component pricing, such as DDR memory pricing as has happened
in the past, and as a result component pricing can rise unexpectedly, negatively
impacting SGI`s gross margins as well as other financial measures; SGI may be
required to write-off additional significant amounts of excess and obsolete
inventory; and new products by competitors may come on the market, which would
decrease the demand for SGI`s products. 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.
Use of Non-GAAP Financial Measures
The non-GAAP financial measures discussed in the text of this press release and
accompanying non-GAAP supplemental information are financial measures used by
SGI`s management to evaluate the operating performance of the Company and to
conduct its business operations. All non-GAAP financial measures discussed and
presented in this press release excludes the revenue and associated costs of
revenue deferred in accordance with Financial Accounting Standards Board,
Accounting Standards Codification, ASC985-605 "Software Revenue Recognition" for
certain of the Company's transactions where software is more than incidental to
the overall product solution sold. Non-GAAP gross profit and gross margin also
excludes stock-based compensation expense, amortization of intangibles and
inventory step up arising from acquisition of substantially all the assets of
Silicon Graphics, Inc. Non-GAAP net loss per share excludes the same items as
discussed above, restructuring expenses, tradename impairments, gain on
settlement agreement, gain on acquisition, and, as well, the related tax effects
of the applicable items. Management presents non-GAAP financial measures because
it considers them to be important supplemental measures of performance.
Management believes that the excluded charges are not central to the Company's
core operating performance and uses the non-GAAP financial measures for planning
purposes, including analysis of the Company's core operating performance against
prior periods, the preparation of operating budgets and to determine appropriate
levels of operating and capital investments. Management excludes from its
non-GAAP revenue and non-GAAP gross margin the items cited above, whether or not
recurring, to facilitate its review of the comparability of the Company's core
operating performance on a period to period basis as well as to better
understand the fundamental economics of a specific period's operational and
financial performance. Management uses this view of the Company's operating
performance for purposes of comparison with its business plan and individual
operating budgets and allocations of resources. Management also believes that
the non-GAAP financial measures provide additional insight for analysts and
investors in evaluating the Company's financial and operational performance in
the same way that management evaluates SGI`s financial performance. However,
these non-GAAP financial measures have limitations as an analytical tool, as
they exclude the financial impact of transactions necessary or advisable for the
conduct of the Company's business, such as the granting of equity compensation
awards and are not intended to be an alternative to financial measures prepared
in accordance with GAAP. Hence, to compensate for these limitations, management
does not review these non-GAAP financial metrics in isolation from its GAAP
results, nor should investors. Pursuant to the requirements of SEC Regulation G,
a detailed reconciliation between the Company's GAAP and non-GAAP financial
results is provided at the end of this press release. Investors are advised to
carefully review and consider this information as well as the GAAP financial
results that are disclosed in the Company's SEC filings.
SGI, CloudRack and Octane are trademarks or registered trademarks of Silicon
Graphics International Corp. All other trademarks are property of their
respective holders
Silicon Graphics International Corp.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
September 25, June 26,
2009 2009
ASSETS
Current assets:
Cash and cash equivalents $ 112,697 $ 128,714
Current portion of restricted cash and cash equivalents 540 1,119
Accounts receivable, net 85,487 64,810
Inventories 126,426 117,790
Deferred cost of revenue 11,190 5,505
Prepaid expenses and other current assets 21,885 25,757
Total current assets 358,225 343,695
Non-current portion of restricted cash and cash equivalents 2,827 2,294
Long-term investments 7,453 7,416
Property and equipment, net 32,295 33,124
Intangible assets, net 20,079 21,521
Other assets 40,736 33,586
Total assets $ 461,615 $ 441,636
LIABILITIES AND STOCKHOLDERS` EQUITY
Current liabilities:
Accounts payable $ 54,162 $ 52,618
Accrued compensation 19,326 20,855
Other current liabilities 29,986 31,880
Current portion of deferred revenue 93,982 69,655
Total current liabilities 197,456 175,008
Non-current portion of deferred revenue 26,123 14,635
Long-term income taxes payable 20,592 18,948
Other non-current liabilities 15,798 14,946
Total liabilities 259,969 223,537
Stockholders` equity 201,646 218,099
Total liabilities and stockholders` equity $ 461,615 $ 441,636
Silicon Graphics International Corp.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share amounts)
Three Months Ended
September 25, June 26, September 27,
2009 2009 2008
Revenue $ 100,123 $ 58,419 $ 65,097
Cost of revenue 77,755 53,341 54,059
Gross profit 22,368 5,078 11,038
Operating expenses:
Research and development 10,059 7,575 4,410
Sales and marketing 16,053 14,003 6,124
General and administrative 13,811 8,002 5,697
Acquisition-related 411 3,108 -
Restructuring 503 1,270 -
Gain from settlement agreement - (5,000 ) -
Gain on acquisition - (19,831 ) -
Total operating expenses 40,837 9,127 16,231
Loss from operations (18,469 ) (4,049 ) (5,193 )
Interest and other income, net:
Interest income, net 124 58 884
Other income (expense), net 605 1,117 (194 )
Total interest and other income, net 729 1,175 d="t6091972_2_21_4132"> 35,445 32,365 34,937 30,565
Weighted average shares outstanding-diluted EPS
Effect of dilutive Series C preferred shares - 1,919 - 1,914
Adjusted weighted average shares outstanding - diluted 35,445 34,284 34,937 32,479
Other financial information:
Straight-lined rental revenue $ 642 $ 1,016 $ 1,787 $ 2,909
Dividends per common share $ 0.65 $ 0.84 $ 1.95 $ 2.52
(A) The National Association of Real Estate Investment Trusts (NAREIT) developed
FFO as a relative non-GAAP financial measure of performance of an equity REIT in
order to recognize that income-producing real estate historically has not
depreciated on the basis determined under Generally Accepted Accounting
Principles (GAAP). FFO is a widely used measure of the operating performance of
real estate companies and is provided here as a supplemental measure to GAAP net
income available to common shareholders and earnings per share. FFO, as defined
under the NAREIT definition and presented by us, is net income available to
common shareholders, computed in accordance with GAAP, excluding gains and
losses from sales of depreciable operating properties, plus real estate related
depreciation and amortization, and after adjustments for unconsolidated
partnerships, joint ventures and other affiliates. Adjustments for
unconsolidated partnerships, joint ventures and other affiliates are calculated
to reflect FFO on the same basis. FFO is a non-GAAP financial measure. FFO does
not represent cash flows from operations as defined by GAAP and is not
indicative that cash flows are adequate to fund all cash needs and is not to be
considered an alternative to net income or any other GAAP measure as a
measurement of the results of the Company`s operations, cash flows or liquidity
as defined by GAAP. It should also be noted that not all REITs calculate FFO the
same way so comparisons with other REITs may not be meaningful.
The dilutive effect of potential common shares from the exercise of share
options is included in diluted earnings per share except in those periods with a
loss from continuing operations.
The additional 1.9 million common shares that would result from the conversion
of the Company`s 5.75% Series C cumulative convertible preferred shares and the
additional 1.6 million common shares that would result from the conversion of
the Company`s 9.00% Series E cumulative convertible preferred shares (issued on
April 2, 2008) and the corresponding add-back of the preferred dividends
declared on those shares are not included in the calculation of diluted earnings
per share for the three and nine months ended September 30, 2009 because the
effect is anti-dilutive. However, because a conversion of the 5.75% Series C
cumulative convertible preferred shares would be dilutive to FFO per share for
the three and nine months ended September 30, 2008, these adjustments have been
made in the calculation of diluted FFO per share for these periods.
The Company`s nonvested share awards are considered participating securities and
are included in the calculation of earnings per share under the two-class method
as required by the Earnings Per Share Topic of the Financial Accounting
Standards Board Accounting Standards Codification. Prior-period earnings per
share data was computed using the treasury stock method and has been adjusted
retrospectively, which lowered basic and diluted FFO per share by $0.01 for the
three months ended September 30, 2008 and lowered basic FFO per share by $0.03
and diluted FFO per share by $0.02 for the nine months ended September 30,
2008.
ENTERTAINMENT PROPERTIES TRUST
Condensed Consolidated Balance Sheets
(Dollars in thousands)
As of As of
September 30, 2009 December 31, 2008
(unaudited)
Assets
Rental properties, net $ 1,726,136 $ 1,735,026
Property under development 20,575 30,835
Mortgage notes and related accrued interest receivable, net 518,069 508,506
Investment in a direct financing lease, net 168,884 166,089
Investment in joint ventures 2,435 2,493
Cash and cash equivalents 11,196 50,082
Restricted cash 15,902 11,004
Intangible assets, net 6,908 12,400
Deferred financing costs, net 13,159 10,741
Accounts receivable, net 31,714 33,405
Notes and related accrued interest receivable, net 12,395 40,338
Other assets 26,164 33,006
Total assets $ 2,553,537 $ 2,633,925
Liabilities and Shareholders` Equity
Accounts payable and accrued liabilities $ 28,608 $ 35,665
Dividends payable 31,300 34,929
Unearned rents and interest 12,277 8,312
Long-term debt 1,184,139 1,262,368
Total liabilities 1,256,324 1,341,274
Entertainment Properties Trust shareholders' equity 1,301,206 1,277,434
Noncontrolling interests (3,993 ) 15,217
Total liabilities and shareholders' equity $ 2,553,537 $ 2,633,925
About Entertainment Properties Trust
Entertainment Properties Trust (NYSE:EPR) is a real estate investment trust
(REIT) that develops, owns, leases, and finances properties for
consumer-preferred, high-quality businesses. EPR's investments are guided by a
focus on inflection opportunities that are associated with or support enduring
uses, excellent executions, attractive economics, and an advantageous market
position. The Company`s total assets exceed $2.5 billion and include megaplex
movie theatres and entertainment retail centers, as well as other destination
recreational and specialty investments. Further information is available at
www.eprkc.com or from Jon Weis at 888-EPR-REIT or info@eprkc.com.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
With the exception of historical information, certain statements contained or
incorporated by reference herein constitute forward-looking statements as such
term is defined in Section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act").The forward-looking statements may refer to our
financial condition, results of operations, plans, objectives, acquisition or
disposition of properties, future expenditures for development projects, capital
resources, future financial performance and business.Forward-looking statements
are not guarantees of performance. They involve numerous risks, uncertainties
and assumptions. Our future results, financial condition and business may differ
materially from those expressed in these forward-looking statements. You can
find many of these statements by looking for words such as "will be,"
"continue," "hope," "goal," "forecast," "approximates," "believes," "expects,"
"anticipates," "estimates," "intends," "plans" "would," "may" or other similar
expressions contained or incorporated by reference herein. In addition,
references to our budgeted amounts are forward-looking statements. These
forward-looking statements represent our intentions, plans, expectations and
beliefs and are subject to numerous assumptions, risks and uncertainties. Many
of the factors that will determine these items are beyond our ability to control
or predict. For further discussion of these factors see "Item 1A. Risk Factors"
in our most recent Annual Report on Form 10-K and, to the extent applicable, our
Quarterly Reports on Form 10-Q.
For these statements, we claim the protection of the safe harbor for
forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995. You are cautioned not to place undue reliance on our
forward-looking statements, which speak only as of the date hereof or the date
of any document incorporated by reference herein. All subsequent written and
oral forward-looking statements attributable to us or any person acting on our
behalf are expressly qualified in their entirety by the cautionary statements
contained or referred to in this section. We do not undertake any obligation to
release publicly any revisions to our forward-looking statements to reflect
events or circumstances after the date hereof.
SGI
Erik Bylin, 510-933-8088
Investor Relations
investorrelations@sgi.com
Copyright Business Wire 2009
