* Expects 1st-qtr revenue about $147 mln vs est $164.7 mln
* Sees 1st-qtr adj earnings $0.02-$0.04/shr vs est $0.09/shr
* Sees full-year revenue of $684 mln vs est $763.7 mln
* Shares down 15 pct after market
(Adds details from conference call, analyst comment; updates
Oct 10 Silicon Graphics International Corp
, a supplier of servers based on the Linux operating
system, estimated first-quarter results below expectations,
citing uncertainty related to the completion of IT projects
funded by the U.S. government.
Silicon Graphics shares fell about 15 percent in extended
The company, which counts Facebook Inc, AOL Inc
and Yahoo Inc among its customers, expects
first-quarter adjusted earnings of 2-4 cents per share, on
revenue of $147 million.
Analysts on average had expected earnings of 9 cents per
share on revenue of $164.7 million, according to Thomson Reuters
Silicon Graphics, which generated about half of its
first-quarter revenue from the U.S. government, said it was
affected by the "halt in all transaction activity that occurred
in late September due to the looming government shutdown".
In a conference call with analysts, Chief Executive Jorge
Titinger said Silicon Graphics was unable to communicate with
most of its federal customers to assess whether current deals
would be delayed.
The shutdown was triggered on Oct. 1 after Congress failed
to reach an agreement on funding for the new fiscal year due to
a standoff over healthcare reforms.
Silicon Graphics provides computer servers to large-scale
data centers. Its products are used to quickly access, analyze
and store large amounts of data.
For the full-year, the company said it expects the
government shutdown and possible spillover effects could reduce
revenue by about 10 percent from its forecast of about $760
The effects of the shutdown combined with Silicon Graphics'
plan to move away from its low-margin legacy cloud business,
which includes low-end servers, could be hurting results for the
full year, FBN Securities analyst Shebly Seyrafi said.
Silicon Graphics expects its legacy cloud business to
decline to $14 million in the first quarter ended Sept. 27, from
$45 million in the fourth quarter.
(Reporting by Neha Alawadhi in Bangalore; Editing by Supantha