SGI stocks plunged this morning based on the results of yesterday’s analyst meeting.
SGI, which is based in Fremont, Calif., lost $2.3 million, or 7 cents per share, in its fiscal second quarter, which spans October through December. If not for certain accounting items, the company said it would have earned 4 cents per share, Even on that basis, the results were far below the average earnings estimate of 25 cents per share among analysts polled by FactSet.
I’ve had a chance to glance over the transcript of the call, and it’s a bit odd. Analysts are a bit peeved that after Barrenechea left they were assured they would maintain their financial guidance, and then again shortly thereafter. Then they drop the bombshell of their failing European division, along with other “certain accounting items”. Unfortunately, no one from SGI was really able (or willing?) to elaborate on what that meant.
With SGI currently under leadership of an interim CEO and now dropping 25% of their stock price, and planning for a reorganization of their European division and probably some product realignments, could SGI be about to change hands again?
via SGI shares plunge 23 pct as profit margins fall – CBS News.
