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Unread postPosted: Sun May 20, 2012 9:03 am 
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Here we go again... what low-margin business could they possibly have now that they sell friggin' supercomputers!!! If they can't find margins even at this high end, then perhaps it's the management and corp strategy that is the issue.

Silicon Graphics stock falls

Silicon Graphics International, a maker of computer servers and storage, dropped for a third day after cutting its forecast for the year last week, as it shifts out of low-margin businesses and customers delayed orders as they wait for new products.

Silicon Graphics fell 58 cents, or 9.6 percent, to close at $5.48, its biggest decline since Thursday. That was the day after the Fremont company cut its forecast for the year, driving shares down 32 percent, the biggest one-day drop since the company was acquired by Rackable Systems in May 2009.

In the past six months, Silicon Graphics' chief executive officer and chief financial officer both resigned, and the company announced plans to restructure its European operations, including cutting about 25 percent of its European workforce.

Read more: http://www.sfgate.com/cgi-bin/article.c ... z1vQjU6iIi

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Unread postPosted: Sun May 20, 2012 10:52 am 
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It's not the margin, it's the total net income, which is margin x sales (very roughly). Same issue that has bitten them in the past

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Unread postPosted: Sun May 20, 2012 11:15 am 
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SAQ wrote:
It's not the margin, it's the total net income, which is margin x sales (very roughly). Same issue that has bitten them in the past


I understand. Their point is that they feel they have a margin issue and must get out of these low-margin deals in order to improve net-income. The assumption is that volume on these low-margin products/deals will not increase, therefore they are not worth pursuing for their overall net contribution. Their assumption about not being able to expect rapid volume ramp at that high end of the market may not be off. However, contribution margin is impacted by COGS, MDF disbursements, commissions, freight and other overhead. So, maybe that's where the problem is, not to mention OPEX. Trying to point to gross margins and accusing the market of not supporting perhaps an unrealistic target margin is just a very tired excuse they keep bringing out and parading every so often.

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Unread postPosted: Sat May 26, 2012 2:41 am 
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sgifanatic wrote:
Here we go again... what low-margin business could they possibly have now that they sell friggin' supercomputers!!!

They don't do any of the Rackable stuff anymore ? So what was the point of Rackable buying them ? Rackable just wanted to be the new bankrupt SGI ?

That's one strange group of people ....

(Do you think Barrenechea saw this coming ? heh heh heh :P )


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Unread postPosted: Sat May 26, 2012 8:39 pm 
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I don't understand why you, or anyone really, care. It's SGI in name only.

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Unread postPosted: Sun May 27, 2012 8:13 am 
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It's like watching a drunk trying to walk.

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Unread postPosted: Sun May 27, 2012 6:06 pm 
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skywriter wrote:
It's like watching a drunk trying to walk.

Which, watching SGI flail around or Matt post ? :P

To be honest, all American businesses are stupid now. We get called in sometimes when some jerkoff company has totally blown up an order with a Chinese company. I guess they are too incompetent to make the parts themselves, but that's another subject. So the last time I kind of jokingly asked, "How's your Chinese?" to this highly trained college-educated purchasing dork and his response ? "That's no problem, we get the waitress at the local restaurant to talk to them when we need help."

Seriously. I couldn't make this up. My fevered imagination is not as insane as the people you have running your country. And you guys swallow this shit hook, line, and sinker. It's effing nuts.


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Unread postPosted: Mon May 28, 2012 9:13 am 
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hamei wrote:
"That's no problem, we get the waitress at the local restaurant to talk to them when we need help."


That seems to show an incredible amount of contempt for the people he's working with - though I suspect that in many cases it's probably returned in an equal measure.

On SGI - there's still a bit of original thinking going on there, better than the usual "grab a bog-standard motherboard, throw it in a bog-standard case, slap a logo on the front and call it special" thinking that so many computers are nowadays. Not much original thinking, but still more than Dell. Although it's a big stretch to claim that a system that runs two distributions of Linux is "certified on multiple operating systems." SGI has obviously learned from their past experiences here, though - they're not wasting any resources getting Windows to run on it so MS can take their money and blow them off again. Twice bitten (MIPS NT, Visual Workstations) and they're finally getting it. Looks like they dropped Itanium - can't say I couldn't see it coming, but another vendor switching makes me wonder about the future of OVMS - hopefully it will transition somewhere else if IA64 is cancelled.

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Unread postPosted: Mon May 28, 2012 12:08 pm 
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SAQ wrote:
SGI has obviously learned from their past experiences here, though - they're not wasting any resources getting Windows to run on it so MS can take their money and blow them off again.

Ehm, the only 'different' SGI design right now, the Altix UV 1000, is certified to run Windows 2008 R2 server :roll:

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Unread postPosted: Mon May 28, 2012 1:32 pm 
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jan-jaap wrote:
Ehm, the only 'different' SGI design right now, the Altix UV 1000, is certified to run Windows 2008 R2 server :roll:
Furthermore part of the "briefing" I was invited to last year, a joint operation from SGI and Intel in Santa Clara, had the VP Engineering connecting to a recently installed Altix system and firing up a Windows VM and showing off 1 terabyte of RAM. It stuck with me because I wondered how many of my employer's analysts doing unholy things with 64-bit Excel would sell their wives and children for access to it...

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Unread postPosted: Mon May 28, 2012 2:09 pm 
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Ah, seems I was giving them too much credit. After MS bites them twice they still come back.

Their marketing department hasn't gotten any better than the old days, it seems, since the fantastic news of Windows support isn't listed in their "features and benefits" page. It does seem probable that they've started listing all available processor speeds - so I guess that's a step up from the Fuel/Tezro days.

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Unread postPosted: Wed May 30, 2012 5:41 am 
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hamei wrote:
skywriter wrote:
It's like watching a drunk trying to walk.

Which, watching SGI flail around or Matt post ? :P

To be honest, all American businesses are stupid now. We get called in sometimes when some jerkoff company has totally blown up an order with a Chinese company. I guess they are too incompetent to make the parts themselves, but that's another subject. So the last time I kind of jokingly asked, "How's your Chinese?" to this highly trained college-educated purchasing dork and his response ? "That's no problem, we get the waitress at the local restaurant to talk to them when we need help."

Seriously. I couldn't make this up. My fevered imagination is not as insane as the people you have running your country. And you guys swallow this shit hook, line, and sinker. It's effing nuts.


Perhaps you have forgotten than the only reasons we are dealing with China is because the cost of goods is much cheaper than we can produce them. Specifically the general unregulated environment causes enormous environmental impact, which costs lots of money to avoid. While I find this practice deplorable, I'm glad it's not in my backyard. As for the imagined behavior of your canonical American businessman in China, what do you expect from a purchasing agent anyway? They're not the brightest bulbs in the bunch wherever they come from. Besides, why isnt the supplier speaking English anyway, they're the supplier! Oh, yes I forgot, that would cost money to train these Chinese people. Can't have that, a peasant saved is a peasant earned!

I'm just waiting for Brazil to finally to come to the table and undercut China. Dont forget there's always Africa someday. By that time we'll be drowning in pollution from low cost manufacturing anyway, so who cares.


BTW it was SGI.

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Unread postPosted: Wed May 30, 2012 1:03 pm 
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skywriter wrote:
Perhaps you have forgotten than the only reasons we are dealing with China is because the cost of goods is much cheaper than we can produce them. Specifically the general unregulated environment causes enormous environmental impact, which costs lots of money to avoid. While I find this practice deplorable, I'm glad it's not in my backyard.


http://articles.latimes.com/2007/mar/06 ... iapollute6
http://03116aa.netsolhost.com/WordPress/?p=1373

Sometimes its good to be south of the equator too far away from anything and everything.. ;)

R.

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Unread postPosted: Wed May 30, 2012 1:05 pm 
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East coast FTW.

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Unread postPosted: Wed May 30, 2012 2:39 pm 
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skywriter wrote:
East coast FTW.

Absolutely! All our stuff out here is buried under six inches or more of sediment...and our lifespans are the longest they've ever been! (I used to do environmental chemistry in a former life.)


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