Silicon Graphics International (Silicon Graphics International) Net Investment Income

Silicon Graphics International Corp was formed on October 20, 1999 as a California limited liability company and then it was incorporated in the state of Delaware as a corporation on December 10, 2002. The Company develops markets and sells servers, enterprise-class storage, differentiating software and designed-to-order solutions for data center deployments, with support and professional services. It is designed to deliver high impact results with lower total cost of ownership and to achieve industry speed, scale and efficiency. The Company's two reportable segments are Product and Services. The Product segment is comprised of its compute and storage solutions. Compute solutions include its scale-out computing, scale-up computing, software and cloud/web solutions. Compute solutions also include integrated third-party hardware and software products that it sells to provide a single source solution for its customers. Its compute solutions are designed to minimize the number and complexity of interconnects for power and data transfer to improve reliability, speed of implementation and serviceability. Storage solutions include both hardware and software offerings to address virtually every type of data storage and management requirement. Products range from entry-level disk arrays to complex storage systems, with technology and hardware. Its storage solutions ar e designed to provide extreme scale, broad flexibility and to minimize the cost to store data. The Service segment is comprised of customer service support and professional services. Its customer support organization provides ongoing maintenance and technical support for its products and some third-party products, as well as contracted maintenance services, hardware deployment services (install and de-install), time and materials-based services and spare parts. Its professional services organization provides value added services associated with technology consulting, project management and customer education, all of which help its customers realize the full value of their information technology investments. Its geographic region includes America, Europe and Asia-Pacific. The Company competes with United States such as Dell Inc. (Dell), Hewlett-Packard Company (HP), International Business Machines Corporation (IBM), Oracle Corporation (Oracle), Cray, Inc. (Cray) and Supermicro Computing, Inc. (Supermicro). In the data analytics or HPDA market, it competes with IBM, Lenovo, HP, Fujitsu, Hitachi and Oracle. It has approximately 600 granted patents and pending applications in the United States and abroad. Its solutions are utilized by scientific, business and government communities to fulfill compute intensive application needs in petascale and exascale environments.