Silicon Graphics International Corp (SGI, Financial) filed Quarterly Report for the period ended 2011-12-30.
Silicon Graphics International Corp has a market cap of $453.9 million; its shares were traded at around $14.37 with a P/E ratio of 34.2 and P/S ratio of 0.7.
Revenue increased $35.2 million or 162% to $56.9 million in the three months ended December 30, 2011 from $21.7 million in the three months ended December 24, 2010. Our higher revenue in APJ is primarily due to the acquisition of SGI Japan in March 2011, which contributed $41.9 million of revenue in the three months ended December 30, 2011. Our revenue for the three months ended December 30, 2011 is comprised of $34.1 million from product sales and $22.8 million from services compared to product and service revenue of $18.8 million and $2.9 million, respectively, for the three months ended December 24, 2010. The APJ segment represented 29% and 12% of the total revenue in the three months ended December 30, 2011 and December 24, 2010, respectively.
Revenue increased $66.7 million or 220% to $97.0 million in the six months ended December 30, 2011 from $30.3 million in the six months ended December 24, 2010. Our higher revenue in APJ is primarily due to the acquisition of SGI Japan in March 2011, which contributed $75.2 million of revenue in the six months ended December 30, 2011. Our revenue for the six months ended December 30, 2011 is comprised of $55.9 million from product sales and $41.1 million from services compared to product and service revenue of $24.9 million and $5.4 million, respectively, for the six months ended December 24, 2010. The APJ segment represented 26% and 10% of the total revenue in the six months ended December 30, 2011 and December 24, 2010, respectively.
Revenue decreased $7.4 million or 12% to $55.0 million in the six months ended December 30, 2011 from $62.4 million in the six months ended December 24, 2010. The decrease in revenue is primarily attributable to a decrease in product revenue of $7.9 million as a result of lower server and storage sales, as well as lower pricing due to competitive pressures in the region. This decrease was partially offset by an increase in service revenue of $0.6 million due to one additional week in the six months ended December 30, 2011 compared to the six months ended December 24, 2010. The EMEA segment represented 15% and 22% of the total revenue in the six months ended December 30, 2011 and December 24, 2010, respectively.
Sales and marketing expense increased $5.1 million or 28% to $23.1 million in the three months ended December 30, 2011 from $18.0 million in the three months ended December 24, 2010. This increase was primarily due to an increase in our compensation and related expenses of $5.3 million during the three months ended December 30, 2011. Compensation and related expenses increased due to increase in headcount, as well as increase in commissions expense as a result of achievement of sales commission targets. Our headcount in sales and marketing increased by 110 employees from 247 employees as of December 24, 2010 to 357 employees as of December 30, 2011, primarily due to the acquisition of SGI Japan in March 2011. Other expenses increased as a result of an increase in travel and marketing related expenses of $0.6 million, facility related expenses of $0.5 million, and share-based compensation expense of $0.2 million. The increase in these expenses is partially offset by a decrease in intangible amortization expense of $1.3 million.
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Silicon Graphics International Corp has a market cap of $453.9 million; its shares were traded at around $14.37 with a P/E ratio of 34.2 and P/S ratio of 0.7.
Highlight of Business Operations:
Revenue increased $24.4 million or 12% to $222.1 million in the six months ended December 30, 2011 from $197.7 million in the six months ended December 24, 2010. The increase in Americas revenue was driven by higher product revenue partially offset by a decline in service revenue. Product revenue increased by $32.0 million driven by the strength in sales of our scale out servers. Service revenue decreased $7.6 million despite having one additional week in the six months ended December 30, 2011 compared to the six months ended December 24, 2010. The decline in our service revenue is due in part to replacement of our installed base of older generation product with our current products. The Americas segment represented 59% and 68% of the total revenue in the six months ended December 30, 2011 and December 24, 2010, respectively.Revenue increased $35.2 million or 162% to $56.9 million in the three months ended December 30, 2011 from $21.7 million in the three months ended December 24, 2010. Our higher revenue in APJ is primarily due to the acquisition of SGI Japan in March 2011, which contributed $41.9 million of revenue in the three months ended December 30, 2011. Our revenue for the three months ended December 30, 2011 is comprised of $34.1 million from product sales and $22.8 million from services compared to product and service revenue of $18.8 million and $2.9 million, respectively, for the three months ended December 24, 2010. The APJ segment represented 29% and 12% of the total revenue in the three months ended December 30, 2011 and December 24, 2010, respectively.
Revenue increased $66.7 million or 220% to $97.0 million in the six months ended December 30, 2011 from $30.3 million in the six months ended December 24, 2010. Our higher revenue in APJ is primarily due to the acquisition of SGI Japan in March 2011, which contributed $75.2 million of revenue in the six months ended December 30, 2011. Our revenue for the six months ended December 30, 2011 is comprised of $55.9 million from product sales and $41.1 million from services compared to product and service revenue of $24.9 million and $5.4 million, respectively, for the six months ended December 24, 2010. The APJ segment represented 26% and 10% of the total revenue in the six months ended December 30, 2011 and December 24, 2010, respectively.
Revenue decreased $7.4 million or 12% to $55.0 million in the six months ended December 30, 2011 from $62.4 million in the six months ended December 24, 2010. The decrease in revenue is primarily attributable to a decrease in product revenue of $7.9 million as a result of lower server and storage sales, as well as lower pricing due to competitive pressures in the region. This decrease was partially offset by an increase in service revenue of $0.6 million due to one additional week in the six months ended December 30, 2011 compared to the six months ended December 24, 2010. The EMEA segment represented 15% and 22% of the total revenue in the six months ended December 30, 2011 and December 24, 2010, respectively.
Sales and marketing expense increased $5.1 million or 28% to $23.1 million in the three months ended December 30, 2011 from $18.0 million in the three months ended December 24, 2010. This increase was primarily due to an increase in our compensation and related expenses of $5.3 million during the three months ended December 30, 2011. Compensation and related expenses increased due to increase in headcount, as well as increase in commissions expense as a result of achievement of sales commission targets. Our headcount in sales and marketing increased by 110 employees from 247 employees as of December 24, 2010 to 357 employees as of December 30, 2011, primarily due to the acquisition of SGI Japan in March 2011. Other expenses increased as a result of an increase in travel and marketing related expenses of $0.6 million, facility related expenses of $0.5 million, and share-based compensation expense of $0.2 million. The increase in these expenses is partially offset by a decrease in intangible amortization expense of $1.3 million.
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