Silicon Graphics


Silicon Graphics, Inc. was an American high-performance computing manufacturer, producing computer hardware and software. Founded in Mountain View, California, in November 1981 by James H. Clark, the computer scientist and entrepreneur perhaps best known for founding Netscape. Its initial market was 3D graphics computer workstations, but its products, strategies and market positions developed significantly over time.
Early systems were based on the Geometry Engine that Clark and Marc Hannah had developed at Stanford University, and were derived from Clark's broader background in computer graphics. The Geometry Engine was the first very-large-scale integration implementation of a geometry pipeline, specialized hardware that accelerated the "inner-loop" geometric computations needed to display three-dimensional images. For much of its history, the company focused on 3D imaging and was a major supplier of both hardware and software in this market.
Silicon Graphics reincorporated as a Delaware corporation in January 1990. Through the mid to late-1990s, the rapidly improving performance of commodity Wintel machines began to erode SGI's stronghold in the 3D market. The porting of Maya to other platforms was a major event in this process. SGI made several attempts to address this, including a disastrous move from their existing MIPS platforms to the Intel Itanium, as well as introducing their own Linux-based Intel IA-32 based workstations and servers that failed in the market. In the mid-2000s the company repositioned itself as a supercomputer vendor, a move that also failed.
On April 1, 2009, SGI filed for Chapter 11 bankruptcy protection and announced that it would sell substantially all of its assets to Rackable Systems, a deal finalized on May 11, 2009, with Rackable assuming the name Silicon Graphics International. The remnants of Silicon Graphics, Inc. became Graphics Properties Holdings, Inc.

History

Early years

left his position as an electrical engineering associate professor at Stanford University to found SGI in 1982 along with a group of seven graduate students and research staff from Stanford University: Kurt Akeley, David J. Brown, Tom Davis, Rocky Rhodes, Marc Hannah, Herb Kuta, and Mark Grossman; along with Abbey Silverstone and a few others.

Growth

Ed McCracken was CEO of Silicon Graphics from 1984 to 1997. During those years, SGI grew from annual revenues of $5.4 million to $3.7 billion. Silicon Graphics systems dominated the market for high-speed rendering of three-dimensional graphics, an area rivals like IBM and Sun Microsystems avoided.

Decline

The addition of 3D graphic capabilities to PCs, and the ability of clusters of Linux- and BSD-based PCs to take on many of the tasks of larger SGI servers, ate into SGI's core markets. The porting of Maya to Linux, Mac OS and Microsoft Windows further eroded the low end of SGI's product line.
In response to challenges faced in the marketplace and a falling share price, Ed McCracken was fired and SGI brought in Richard Belluzzo to replace him. Under Belluzzo's leadership a number of initiatives were taken which are considered to have accelerated the corporate decline.
One such initiative was trying to sell workstations running Windows NT called Visual Workstations in addition to workstations running IRIX, the company's version of UNIX. This put the company in even more direct competition with the likes of Dell, making it more difficult to justify a price premium. The product line was unsuccessful and abandoned a few years later.
SGI's premature announcement of its migration from MIPS to Itanium and its abortive ventures into IA-32 architecture systems damaged SGI's credibility in the market.
In 1999, in an attempt to clarify their current market position as more than a graphics company, Silicon Graphics Inc. changed its corporate identity to "SGI", although its legal name was unchanged.
At the same time, SGI announced a new logo consisting of only the letters "sgi" in a proprietary font called "SGI", created by branding and design consulting firm Landor Associates, in collaboration with designer Joe Stitzlein. SGI continued to use the "Silicon Graphics" name for its workstation product line, and later re-adopted the cube logo for some workstation models.
In November 2005, SGI announced that it had been delisted from the New York Stock Exchange because its common stock had fallen below the minimum share price for listing on the exchange. SGI's market capitalization dwindled from a peak of over seven billion dollars in 1995 to just $120 million at the time of delisting. In February 2006, SGI noted that it could run out of cash by the end of the year.

Re-emergence

In mid-2005, SGI hired Alix Partners to advise it on returning to profitability and received a new line of credit. SGI announced it was postponing its scheduled annual December stockholders meeting until March 2006. It proposed a reverse stock split to deal with the de-listing from the New York Stock Exchange.
In January 2006, SGI hired Dennis McKenna as its new CEO and chairman of the board of directors. Mr. McKenna succeeded Robert Bishop, who remained vice chairman of the board of directors.
On May 8, 2006, SGI announced that it had filed for Chapter 11 bankruptcy protection for itself and U.S. subsidiaries as part of a plan to reduce debt by $250 million. Two days later, the U.S. Bankruptcy Court approved its first day motions and its use of a $70 million financing facility provided by a group of its bondholders. Foreign subsidiaries were unaffected.
On September 6, 2006, SGI announced the end of development for the MIPS/IRIX line and the IRIX operating system. Production would end on December 29 and the last orders would be fulfilled by March 2007. Support for these products would end after December 2013.
SGI emerged from bankruptcy protection on October 17, 2006. Its stock symbol on Pink Sheets at that point, SGID, was canceled, and new stock was issued on the NASDAQ exchange under the symbol SGIC. This new stock was distributed to the company's creditors, and the SGID common stockholders were left with worthless shares. At the end of that year, the company moved its headquarters from Mountain View to Sunnyvale. Its earlier North Shoreline headquarters is now occupied by the Computer History Museum; the newer Amphitheatre Parkway headquarters was sold to Google. Both of these locations were award-winning designs by Studios Architecture.
In February of 2008 SGI acquired Linux Networx, a small Linux based HPC company specializing in x86 based HPC servers.
In April 2008, SGI re-entered the visualization market with the SGI Virtu range of visualization servers and workstations, which were re-badged systems from BOXX Technologies based on Intel Xeon or AMD Opteron processors and Nvidia Quadro graphics chipsets, running Red Hat Enterprise Linux, SUSE Linux Enterprise Server or Windows Compute Cluster Server.

Final bankruptcy and acquisition by Rackable Systems

In December 2008, SGI received a delisting notification from NASDAQ, as its market value had been below the minimum $35 million requirement for 10 consecutive trading days, and also did not meet NASDAQ's alternative requirements of a minimum stockholders' equity of $2.5 million or annual net income from continuing operations of $500,000 or more.
On April 1, 2009, SGI filed for Chapter 11 again, and announced that it would sell substantially all of its assets to Rackable Systems for $25 million. The sale, ultimately for $42.5 million, was finalized on May 11, 2009; at the same time, Rackable announced their adoption of "Silicon Graphics International" as their global name and brand. The Bankruptcy Court scheduled continuing proceedings and hearings for June 3 and 24, 2009, and July 22, 2009.
After the Rackable acquisition, Vizworld magazine published
Hewlett Packard Enterprise acquired Silicon Graphics International in November 2016, which allowed HPE to place the SGI Pleiades, a TOP500 supercomputer at NASA Ames Research Center, in its portfolio.

Graphics Properties Holdings, Inc. era

During Silicon Graphics Inc.'s second bankruptcy phase, it was renamed to Graphics Properties Holdings, Inc. in June 2009.
In 2010, GPHI announced it had won a significant favorable ruling in its litigation with ATI Technologies and AMD in June 2010, following the patent lawsuit originally filed during the Silicon Graphics, Inc. era. Following the 2008 appeal by ATI over the validity of and Silicon Graphics Inc's voluntary dismissal of the patent from the lawsuit, the Federal Circuit upheld the jury verdict on the validity of GPHI's U.S. Patent No. 6,650,327, and furthermore found that AMD had lost its right to challenge patent validity in future proceedings. On January 31, 2011, the District Court entered an order that permits AMD to pursue its invalidity affirmative defense at trial and does not permit SGI to accuse AMD's Radeon R700 series of graphics products of infringement in this case. On April 18, 2011, GPHI and AMD had entered into a confidential Settlement and License Agreement that resolved this litigation matter for an immaterial amount and that provides immunity under all GPHI patents for alleged infringement by AMD products, including components, software and designs. On April 26, 2011, the Court entered an order granting the parties' agreed motion for dismissal and final judgment.
In November 2011, GPHI filed another patent infringement lawsuit against Apple Inc. in Delaware involving more patents than their original patent infringement case against Apple last November, for alleged violation of U.S. patents 6,650,327, and .
In 2012, GPHI filed lawsuit against Apple, Sony, HTC Corp, LG Electronics Inc. and Samsung Electronics Co., Research in Motion Ltd. for allegedly violating patent relating to a computer graphics process that turns text and images into pixels to be displayed on screens. Affected devices include Apple iPhone, HTC EVO4G, LG Thrill, Research in Motion Torch, Samsung Galaxy S and Galaxy S II, and Sony Xperia Play smartphones.