Excluding charges for restructuring and impairment of investments, earnings before interest, taxes, depreciation, and amortization (EBITDA) for the second quarter was a loss of $17.3 million, compared to a loss of $13.2 million for the previous quarter and a loss of $22.1 million in the second quarter of the prior year.
Pro forma revenue, a non-GAAP measure, for the second quarter was $89.3 million, compared to $117.5 million in the previous quarter and $109.1 million in the second quarter of the prior year. Pro forma revenue excludes the effect of Statement of Accounting Position 97-2, which requires the deferral of revenue in certain circumstances under software revenue recognition rules and is useful when considered in connection with revenue as calculated under GAAP.
Bookings for the second quarter were $68 million, compared to $58 million in the first quarter and $100 million in the second quarter of the prior year. Bookings are calculated as the sum of all committed purchase orders for products and professional services deliverable within 12 months.
The company achieved key milestones and furthered its product and operational strategy during the quarter:
NASA Ames Research Center in Mountain View, California launched the world’s third fastest supercomputer, a SGI Altix ICE 8200EX system featuring 51,200-core Intel processors. This system was placed into operation much more quickly than other comparable systems.
Bookings increased about 17 percent compared to the first quarter and were strongest in the company’s government business, particularly defense applications.
The company unveiled Silicon Graphics® VUE, a suite of software solutions that combine visual information from any source application or platform, fuse it into an intuitive 3D viewing experience, and securely deliver that experience anywhere in the world using any device.
Silicon Graphics won multiple awards at the major industry conference Supercomputing 2008, and at GEOINT, the company held the first public demonstrations of its new visualization software family.
With our strong foundation of government customers and our long-term strategy, our leading products and services continue to gain traction in a difficult economic situation, said Silicon Graphics CEO Robert Bo Ewald. We’ll remain focused on our core strengths and strategy of helping customers solve large data, compute and visually intensive problems, while we work inside the company to improve our operations and financial footing.
Given the economic environment, we are very focused on managing our expenses and working capital. We continue to implement the cost reduction measures we announced in December, said Silicon Graphics CFO Greg Wood. The benefit of these measures should begin to be seen in the second half of our fiscal year as we take aggressive action to return to profitability.
As we move into 2009, we have received very positive feedback from customers about our current and upcoming products, which include the recently announced VUE visualization tools and our ISLE software family, added Ewald. Meanwhile, governments around the world are beginning to take actions that should increase investments in IT spending in core government R&D programs. Many of our existing customers should see additional budgets and we are hopeful that we can serve their increasing needs.
