SGI in talks to sell Alias graphics business

mainman · Feb 12, 2004, 07:38 AM

"NEW YORK, Feb 11 (Reuters) - Specialized-computer maker Silicon Graphics Inc. (NYSE:SGI - News) said on Wednesday it was in talks to sell its Alias graphics technology and services business in a move to focus more closely on its core computing and storage business. Silicon Graphics, which makes high-end computers used by defense contractors and Hollywood studios, said it was in exclusive talks to sell Alias to an unnamed private equity investment firm. The terms of a possible deal were not disclosed.

Alias, which provides 3D graphics technology and services for industries such as film, video, games, and industrial design, would operate as an independent company if the transaction was completed as expected, Silicon Graphics said.

Shedding Alias would continue the company's strategy of narrowing its focus to products such as a computer based on the Intel Corp. (NasdaqNM:INTC - News) Itanium 2 microprocessor and running the increasingly popular Linux operating system.

Sales of Alias' entire product line would continue and there would be no changes to the management team, service and support or product availability due to the negotiations or sale of the business, Silicon Graphics said.

For the second fiscal quarter ended Dec. 26, Alias had revenues of $18.4 million, compared with Silicon Graphic's total revenues of $237.9 million.

Shares of Mountain View, California-based Silicon Graphics gained 40 cents, or 11.8 percent, to close at $3.80 on the New York Stock Exchange (News - Websites) on Wednesday."

Source: biz.yahoo.com

Feb 12, 2004, 07:38 AM	#1
mainman Mr. Nobody Join Date: Jul 2003 Location: OmniPresent Nightwatcher Posts: 5,961 Rep Power: 71	SGI in talks to sell Alias graphics business "NEW YORK, Feb 11 (Reuters) - Specialized-computer maker Silicon Graphics Inc. (NYSE:SGI - News) said on Wednesday it was in talks to sell its Alias graphics technology and services business in a move to focus more closely on its core computing and storage business. Silicon Graphics, which makes high-end computers used by defense contractors and Hollywood studios, said it was in exclusive talks to sell Alias to an unnamed private equity investment firm. The terms of a possible deal were not disclosed. Alias, which provides 3D graphics technology and services for industries such as film, video, games, and industrial design, would operate as an independent company if the transaction was completed as expected, Silicon Graphics said. Shedding Alias would continue the company's strategy of narrowing its focus to products such as a computer based on the Intel Corp. (NasdaqNM:INTC - News) Itanium 2 microprocessor and running the increasingly popular Linux operating system. Sales of Alias' entire product line would continue and there would be no changes to the management team, service and support or product availability due to the negotiations or sale of the business, Silicon Graphics said. For the second fiscal quarter ended Dec. 26, Alias had revenues of $18.4 million, compared with Silicon Graphic's total revenues of $237.9 million. Shares of Mountain View, California-based Silicon Graphics gained 40 cents, or 11.8 percent, to close at $3.80 on the New York Stock Exchange (News - Websites) on Wednesday." Source: biz.yahoo.com