SGI announces narrower loss

Silicon Graphics Inc., a maker of high-end computers and storage systems, said Thursday that its loss for the quarter ended Dec. 26 will be less than earlier anticipated.

Mountain View, Calif.-based SGI said it expects a loss between $5 million and $10 million, including a $13 million charge for restructuring. Previously, the company said to expect break-even results to a loss of $10 million, not including the restructuring charge.

SGI reported the projection, as well as results from a December debt restructuring, ahead of its expected quarterly earnings release on Jan. 21.

SGI failed on a first attempt to restructure its debt in 2003, not convincing enough bond holders that the offer was lucrative enough, but a second try succeeded. Notes due September 2004 now are due in 2009, SGI said Thursday.

SGI also said revenue is expected to be $235 million, within the range of $220 million to $240 million earlier projected.

Investors on Thursday cheered the news, sending SGI's stock up 28 cents, or 15 percent, to $2.09.