Silicon Graphics reports its first BILLION DOLLAR year.

The Company delivers on post-merger objective

Silicon Graphics Inc., today reported that for its fiscal year ended June 30, 1993, the Company's consolidated revenues were $1.1 billion, a 26% increase over the comparable period. Net income for fiscal 1993 was $95 million, or $1.30 per common shares after extraordinary item. A year ago the Company reported a net loss of $118 million, or ($2.19) per common share for the prior fiscal year due primarily to charges related to the merger with MIPS Computer Systems which was effective June 29, 1992.

For the fourth quarter ended June 30, 1993 net revenues were $319 million, compared to $240 million in the year ago quarter, a 33% increase. Net income for the quarter was $35 million, or $.47 per common share.

Edward R. McCracken, Silicon Graphics' president and CEO commented,

"I would characterize Fiscal 1993 as one of the most challenging in the history of the Company. We emerged as a significant computer systems supplier, absorbed and integrated the MIPS operation, delivered a new CPU architecture, and introduced several new products that span the entire spectrum of our offerings, all without the often associated transition disruption. To be able to do all of these things in any year is rewarding, but to accomplish them while reporting the kind of financial results we have is especially gratifying.

"Our productivity per employee improved dramatically, and was at an all time high of $341,000 per employee during the fourth quarter. With solid momentum, a strong position in the marketplace and healthy financials, we look forward to fiscal 1994. "

The Company also noted that IndyTM, its new low cost personal workstation introduced in mid-July, has met with an ethusiastic response from current and potential customers. Indy, along with the new thrust in the digital media marketplace will open new doors for the Company for the rest of the decade.