Silicon Graphics International Cuts Outlook, Shares Plunge

(RTTNews) - Silicon Graphics International Corp. (SGI) Thursday lowered its financial outlook for the first quarter and full year 2014, mainly attributed to the federal government shutdown. On the news, shares of the company plunged 14 percent in the extended trading hours.

SGI now expects first-quarter loss to be in a range of $0.21 to $0.18 per share, and adjusted loss of $0.02 to $0.04 per share.

Analysts polled by Thomson Reuters currently estimate earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude one-time items.

Previously, the company anticipated loss of $0.14 to $0.07 per share and adjusted profit of $0.07 to $0.14 per share.

The company now expects to generate total revenues of about $147 million, down from the prior estimate of $160 million to $170 million. The revenue shortfall was primarily due to the impending government shutdown at quarter-end, which led to the freezing of funds for a Federal project; and to delayed acceptance of a non-Federal project.

Analysts expect the company to generate revenues of $164.67 million for the first quarter.

For the fiscal year ending June 27, 2014, the company currently expects that the government shutdown and possible spillover effects could result in a reduction in revenue for the year of about 10 percent versus its prior revenue expectations of around $760 million.

Analysts currently expects revenues of about $763.67 million for the quarter.

Shares of SGI closed Thursday at $16.35, up $0.32 or 2.00%, on the Nasdaq. The stock further dropped to $2.35 or 14.37% in the after hours.