SGI Files For Bankruptcy

[Tami]

Graphics pioneer SGI has filed for Chapter 11 Bankruptcy in the US, and is in the hunt for a new CEO while it attempts to ensure survival by cutting operating costs and reducing debt by $US250 million.
Chapter 11 is a means of continuing operations under the supervision of the US Courts while the company attempt to get back on track.
"We want to assure our customers, our employees and our communities that SGI is operating-business as usual," Dennis P. McKenna, the recently appointed, Chairman and CEO of SGI.
"We expect to proceed quickly and will emerge from these proceedings with a significantly improved balance sheet and, as a result, greater operating flexibility. I am confident in SGI's future.”
Once a familiar sight in digital post-production and visual FX facilities, SGI has failed to maintain relevance on the modern desktop in the face of an onslaught of low cost workstations powered by NVIDIA and ATI graphics. While SGI technology powers some of the largest render farms and scientific and military visualization applications across the globe, the company has failed to ignite the imagination of the broader computing market.