On January 20, 1994, Silicon Graphics, Inc. reported net revenues totaling $370 million for the quarter ending December 31, 1993. This represents an increase of 37% over net revenues of $270 million for the same quarter a year earlier. Net income for the quarter increased 65% to $36 million, or $.24 per share, compared with net income of $22 million or $.15 per share in the same period for the prior fiscal year.
For the first six months of this fiscal year, the Company reported net revenues of $672 million, an increase of 34% over the same period for the prior fiscal year. Net income was $62 million for the six month period ended December 31, 1993 or $.41 per share, compared with net income of $35 million or $.25 per share in the same period for the prior fiscal year.
Edward R. McCracken, Silicon Graphics' president and chief executive officer, said, "We're extremely pleased with 37% revenue growth and a 65% increase in net income for the quarter. IRIS Indigo2TM and the newly introduced IndyTM products which are offered at low-end competitive price points are excellent examples of value-added product offerings which are being rapidly embraced in the marketplace. The success of our Company, which has been built on a differentiated product strategy, is evident in our substantial increase in market share."
The Company added $209 million in cash and investments during the quarter, resulting in a cash, investments and financial instruments balance of $400 million at December 31, 1993. The substantial increase in the Company's cash balances was primarily a result of the $195 million proceeds from a zero coupon convertible subordinated debenture completed in November 1993. The Company also noted that it had completed a two-for-one stock split during the December 1993 quarter.
Silicon Graphics, Inc. is the leading manufacturer of high-performance visual computing systems. The Company delivers interactive three-dimensional graphics, digital media and multiprocessing supercomputing technologies to technical, scientific and creative professionals. Its subsidiary, MIPS Technologies, Inc., designs and licenses the industry's leading RISC processor technology for the computer systems and embedded control markets. Silicon Graphics has offices worldwide and headquarters in Mountain View, California.
