Silicon Graphics suffers delisting

Brief: SGI will be delisted from the New York Stock Exchange on Monday after languishing in the sub-$1 range for over six months now. It's a long way from the heady days of $50 stock

Silicon Graphics, doyenne of the supercomputer world, is to de-list from the New York Stock Exchange (NYSE) next Monday, after its share price fell below the minimum standard for continued listing earlier this year.

The move comes as little surprise. The company received a warning from the NYSE back in May when its share price dropped through the $1 barrier. Although it had dipped into sub-$1 territory in late 2001 and again in late 2002, on both occasions the price recovered within a month or two. This time around it has now been trading at below $1 for over six months and is currently trading at under 70 cents — way below the heady heights of $50 which the stock briefly reached in 1995.

The NYSE's standard requires that a company's common stock trade at a minimum average closing share price of $1.00 during a consecutive 30-day trading period. In a press release whose words were as terse as they were brief, SGI noted that "common stock has not returned to compliance with this standard."

SGI said it now expects its stock to be traded on the small-cap OTC Bulletin Board.

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