FREMONT — Silicon Graphics, a maker of high-performance computers and data storage systems, said Thursday the government shutdown is expected to erode its revenue and trigger a larger-than-expected loss.
SGI now expects first-quarter revenue to total about $147 million, which compares to the company’s guidance of early August for a range of $160 million to $170 million.
Fremont-based SGI said it had expected a slowdown in spending akin to what happened in connection with previous federal sequester and budget flaps.
But the slump in government spending with the current partial shutdown went well beyond expectations.
“We could not have anticipated the unprecedented halt in all transaction activity that occurred in late September due to the looming government shutdown,” SGI CEO Jorge Titinger said.
Per-share losses are now expected to range from 18 cents to 21 cents, compared with prior guidance of a loss of 7 cents to 14 cents. SGI’s first fiscal quarter ended in late September.
SGI’s shares fell 16 percent in after-hours trading.
Contact George Avalos at 408-859-5167 or 408-373-3556. twitter.com/georgeavalos
