SGI Reports Q1

SUNNYVALE, Calif. -- SGI (NASDAQ:SGIC) today announced financial results for the first quarter of its fiscal year 2008, which ended September 28, 2007.

First Quarter FY08 Highlights

Overall in its first quarter, SGI:

"The first step in our growth strategy is to increase our bookings, so I'm very pleased with our order rate this quarter," said Bo Ewald, SGI Chief Executive Officer. "We saw very good momentum in our bookings, with an increase of 43% over Q4. I'm particularly encouraged by the composition and mix of the Q1 orders, which came from across our target markets with the largest single order being under $5M. That is a good step in our plan to build our base of customers without having to rely on very large single system orders.""Our pro forma revenue is stable and our expenses were under control, with operating results in line with our goals. A growing portion of our business is focused on the sale of high value-add software and services, resulting in a greater number of our transactions being impacted by software revenue recognition accounting. Our GAAP results reflect this business and financial transition," said Kathy Lanterman, SGI Chief Financial Officer. "We anticipate that the long term result of this transition will be more stable GAAP results."

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