SGI On The Ropes

Reuters reports that nothing lasts forever, especially high flying Silicon Valley hardware makers.

Silicon Graphics Inc., a struggling maker of high-performance business computers, Monday filed for Chapter 11 bankruptcy protection after a round of restructuring measures failed, sending its shares plunging.
SGI is best known for its high-powered computers that are used in creating Hollywood movie special-effects. The machines are also used for pharmaceutical research, petroleum exploration and in the financial industry.
The company was started by Jim Clark, who went on to found Netscape Communications Corp., the Web-browser developer that’s credited with helping to promote the mainstream use of the Internet. SGI’s old offices now serve as the headquarters of Internet powerhouse Google Inc.

For more on this story, see Om Malik’s take.

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