SGI has reported it’s Q2 results for 2010, and there’s some interesting figures that show they are poised to really make the most of their technology in the next few quarters.

Revenue is up to over $90m but SGI still posted a loss of $23m. The last few quarters have been spent consolidating operations and reducing costs, so the loss isn’t as bad as it has been.

A quick aside on one of the quirks of the HPC market. Rules mean that SGI can’t book revenue from HPC installations until they’ve been qualified, and if it’s a multi-year deal they have to book those revenues across the year. This always makes the business look a lot more shaky than it is, which is why they also report non-GAAP figures, which get around this.

According to this, revenues were up at just over $150m with a profit of just over $2m. According to details on the call, SGI are gunning for over $500m in sales this year.

The new Altix UV systems have a lot of promise. Now that Oracle have completed their Sun merger, looking at Sun’s future roadmap their involvement in HPC – both at the hardware and software level – looks doubtful.

This leaves a nice gap for SGI to exploit, and at the lower end HP and Dell don’t have much to offer apart from clusters. With new products and a server market that’s starting to pick up, SGI are well positioned to do well this year.

You can read the full details here.

I can highly recommend you head on over to HPCWire and read their article, Mind the GAAP, which features an in-depth deconstruction of SGI’s financial results, and an interview with Silicon Graphics CFO Greg Wood.

Revenue for the second quarter was $82.8 million, compared to $92.8 million in the previous quarter and $90.1 million in the second quarter of the prior year. The company’s net loss for the quarter was $49.2 million, or $4.24 per share, versus a net loss of $33.7 million or $2.91 per share last quarter and $42.2 million or $3.78 per share in the second quarter of the prior year.

Three interesting things came out of the call:

1. SGI have reached an agreement with existing creditors, who’s debts were supposed to start being repaid in December, to postpone this for 2 years. Obviously this will have a positive effect on cash flow.
2. There was another round of layoffs (restructuring, external promotions, reduction in force – call it what you will) at the end of December, so the financial hit for that comes in this quarter
3. Despite receiving another NASDAQ delisting notice (see Deja Vu – Silicon Graphics to be delisted from NASDAQ), given the tough times all business is facing, the NASDAQ has relaxed it’s rules and SGI are no longer in danger of being delisted (again)

Read the full Silicon Graphics financial results release at http://www.sgi.com/company_info/newsroom/press_releases/2009/february/results.html