Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Silicon Graphics (NASDAQ: SGI ) have popped today by greater than 17% after the company reported solid earnings along with rosy guidance.
So what: Revenue in the quarter came in at $171 million, which resulted in non-GAAP earnings per share of $0.10. The company had already released preliminary figures in early January, so there were no real surprises. While those figures were better than expected, guidance was particularly strong.
Now what: For the current quarter, Silicon Graphics expects revenue to be in the range of $200 million to $230 million. Revenue guidance includes $50 million of low-margin deals that the company already disclosed. That should turn into non-GAAP earnings per share of $0.12 to $0.18 after everything is said and done, which is significantly better than the penny per share profit that analysts were modeling for.
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