the corner office

a blog, by Colin Pretorius

Spin and Portent

In an article on SGI (via Linux Today):

Server, storage, and visualization vendor Silicon Graphics Inc's chairman and CEO, Dennis McKenna, said in an interview with Computer Business Review that its filing of Chapter 11 bankruptcy protection in early May should be seen as a "positive event".

"Before the Chapter 11 there was a high level of uncertainty around SGI," said McKenna.

No, the next line was not "... but now everybody knows we're stuffed.".

Instead, he continues with "Customers were saying that we could have the best strategy but how were we going to deal with all of this debt?" Personally, I'd be more worried about the state of the business models that led them to that debt. The man has a point kinda sorta, but the spin rather detracts from it.

Another line which may be portentous:

McKenna said the company is looking to raise additional money either from enforcing some of its numerous patents, or from divestitures.

That patent thing sounds rather casual, but you have to wonder. Deciding that cashing in on some IP was the best way to 'restore profitability' didn't turn out too well for these dudes.

{2006.06.22 20:53}

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