Silicon Graphics has filed for Chapter 11 bankruptcy
after continuing to lose money.
The high-performance computer company is attempting to
re-structure its operations to enable it to survive, but it has
reported yet another loss-making quarter.
The company, though, says it has reached an agreement with some
major lenders to reduce its debt by around $250m (£147m) as part of
the restructuring.
Preliminary third-quarter financial results show sales of $108m
for the three months ended 31 March, down from the $159m in the
same quarter last year.
Silicon Graphics’ net loss for the quarter was $43m, compared
with the $45m lost in the corresponding quarter last year.
The company’s operations outside the US, including those in
Europe, are not covered by the Chapter 11 bankruptcy.
Silicon said it was hoping to come out of bankruptcy within six
months.
Chapter 11 bankruptcy protects a US company from being
immediately closed down by its creditors.
Silicon Graphics chief executive officer Dennis McKenna said,
“We want to assure our customers that Silicon Graphics is
operating, business as usual.”