Silicon Graphics consolidates, farewells executives

Silicon Graphics Inc. has reshuffled its corporate structure and also announced the departures of several executives. The moves follow an earnings report in which SGI said its earnings had dropped from US$53 million in the third quarter of 1996 to $11 million for the most recent quarter ended March 31.

Silicon Graphics Inc. has reshuffled its corporate structure and also announced the departures of several executives.

Stanley J. Meresman yesterday quit as SGI's chief financial officer, while Michael Ramsey, senior vice president of the company's desktop group, also resigned. Both left to pursue other interests, the company said.

The company's new computer systems organisation will include all of SGI's computer products - desktop graphics workstations, high-performance servers, supercomputing systems from Cray, and visualisation supercomputers. Manufacturing has been brought into the computer systems group - it was previously a separate unit.

This unit will be headed by executive vice president Robert Ewald, previously president of SGI's Cray Research subsidiary. SGI bought Cray last year.

Another unit will consolidate administrative support functions into a corporate operations group, which will be headed by senior vice president William Kelly, who previously was general counsel for the Silicon Interactive group.

A third group will combine SGI's service and support operations into a single customer and professional services group.

The moves follow an earnings report in which SGI said its earnings had dropped from US$53 million in the third quarter of 1996 to $11 million for the most recent quarter ended March 31.

SGI had a strong presence and focus in multimedia graphics and entertainment, before it expanded into the commercial marketplace with the Origin family, says Jerry Sheridan, an analyst with Dataquest Inc. That effort has yet to bear fruit, he says.

"Bringing all of their products under one head, I see as a more consistent, more unified and more focused approach to satisfying their legacy environment," especially as SGI expands into the commercial marketplace, Sheridan says.

SGI, based in Mountain View, California, can be reached on the Web at http://www.sgi.com/.

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