It is ironic that "The sad saga of Silicon Graphics" (Cover Story, August 4) hit the stands the day after the company announced the best quarter in its history: well over $1 billion in revenue and strong profitability.

Most of the story missed the point of where Silicon Graphics is today. Yes, Silicon Graphics has had problems over the past couple of years. We recognized those problems, accepted responsibility, and our management team has been working hard to address them. Very strong actions have been taken, and we are beginning to see the results, as evidenced by our outstanding fourth quarter.

We are very optimistic about this coming year and beyond. This quarter was a reflection of the new Silicon Graphics' ability to execute. Our product transition is complete. We are shipping our entire product line without significant constraints--and most importantly, the new products are finding strong acceptance with our customers. Our entire organization is aligned to build on this success as we enter the new fiscal year.

Never underestimate the creativity and determination of the employees and loyal customers of Silicon Graphics. There is nothing more satisfying to us than to prove the remaining skeptics wrong.

Gary L. Lauer

Executive Vice-President

Silicon Graphics Inc.

Mountain View, Calif.

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