SGI reports record results for fiscal fourth quarter and full year 2011
18 Aug 2011 Fremont -
SGI has issued financial results for its fiscal fourth quarter and full year 2011 ending June 24, 2011.
Financial highlights Q4 FY11 include:
- Record Q4 Revenue. GAAP Revenue $195.5 million, up 92% Y/Y; Non-GAAP Revenue $189.8 million, up 55% Y/Y
- Strong Q4 Gross Margin. GAAP Gross Margin 23.5%, up 422 bps Y/Y; Non-GAAP Gross Margin 28.4%, up 440 bps Y/Y
- GAAP EPS of ($0.39) compared to ($0.91) last year; Non-GAAP EPS of $0.12 compared to ($0.55) last year
Financial highlights fiscal 2011 include:
- Record FY11 Revenue. GAAP Revenue $629.6 million, up 56% Y/Y; Non-GAAP Revenue $641.8 million, up 22% Y/Y
- Strong FY11 Gross Margin. GAAP Gross Margin 27.0%, up 478 bps Y/Y; Non-GAAP Gross Margin 29.2%, up 192 bps Y/Y
- GAAP EPS of ($0.69) compared to ($2.95) last year; Non-GAAP EPS of $0.57 compared to ($0.82) last year
- Cash of $143.2M million, up 7% Q/Q and debt-free
"Fiscal 2011 was a pivotal year for SGI achieving record revenues, a revenue growth rate of near three times the industry and operating with bright-line non-GAAP profitability. In the last 12 months, SGI has introduced world-class products, significantly expanded our global capability, delivered mission-critical solutions to marquee customers and established a new baseline and created a customer-oriented culture for the company", stated SGI CEO Mark J. Barrenechea.
Mark J. Barrenechea added: "We continue to plan on an annual basis. As we look towards fiscal 2012 based on current business trends, we expect to grow revenues between 18 - 24%."
Business highlights for Q4 FY11 include:
- Customer successes within the quarter include: UK Atomic Weapons, International Fusion Energy Research Center, Semiconductor Energy Laboratory, DTU, Leibniz Supercomputing Centre, NOAA, NTNU, Amazon, Tohoku University and ANU
- Strong business momentum within Public Sector, Manufacturing and Cloud
- Acquired OpenCFD Ltd. on August 8, 2011, the open source expert in Computational Fluid Dynamics (CFD) software. This move changes the shape of the CFD market by offering an open CFD platform and a complete solution - hardware and software designed to work together.
- Announced the introduction of the SGI InfiniteStorage (IS) 5500, a next generation storage platform with an innovative modular design for extreme density and scalability.
- Announced the latest generation of SGI Altix ICE, based on the next generation Intel Xeon processor series.
- Achieved a performance gain of up to 35% with SGI Altix UV server line, resulting in four new world record benchmarks.
- Continued to expand Altix UV market opportunity - SGI has shipped more than 500 Altix UV systems to various life sciences, scientific research and industrial customers since beginning commercial delivery in June 2010.
- Strengthened our leadership team with the additions of Franz Aman as CMO and Praveen Mandal as SVP, Engineering.
In the quarter, the company's international business contributed 47% and services contributed 27% of non-GAAP revenue. Public sector, manufacturing and cloud were the strongest vertical markets this quarter.
"We executed above and beyond my expectations in each of our key focus areas for the year", stated SGI CFO James Wheat. "We have met or exceeded our fiscal 2011 guidance on all metrics and expanded sales opportunities by acquiring SGI Japan, Ltd. and by investing intelligently in our sales and marketing teams. Further, we have expanded our market opportunity in technical computing by introducing new products and expanding our market share, all while being very disciplined with costs, which is reflected in our earnings. We are positioned to further expand our sales opportunities through the acquisition of OpenCFD Ltd. in fiscal 2012."
James Wheat added: "In fiscal 2012, our two largest investment areas will be products and sales force expansion while we expect to grow earnings."