Exhibit 99.1

	News Release

FOR IMMEDIATE RELEASE

SGI REPORTS THIRD QUARTER FISCAL YEAR 2008 RESULTS

Order Momentum Continues; Strong Q4 Start with Significant Wins

SUNNYVALE, Calif. (May 6, 2008)—SGI (NASDAQ: SGIC) today announced financial results for the third quarter of fiscal 2008, which ended March 28, 2008.

The Company’s Webcast and conference call to discuss results is Tuesday, May 6 at 2:00 p.m. PDT. The Webcast and presentation materials will be available on the SGI Investors Relations Web page at the time of the call, at www.sgi.com/company_info/investors/.   Third Quarter FY08 Highlights   Overall in its third quarter, SGI:   •   Grew orders 50 percent over orders received in the third quarter of the prior year   •   Grew backlog to $134 million as of March 28, 2008, an 80 percent increase over the beginning of the company’s fiscal year on a comparable basis   •   Accelerated its software strategy with acquisition of key IP assets formerly owned by Linux Networx   “We have made great strides in continuing to execute on our strategy this quarter,” said Bo Ewald, SGI Chief Executive Officer. “We saw a 50 percent increase in orders compared to the third quarter of last year, acquired significant software assets to strengthen our business and accelerate development of our Industrial Strength Linux Environment, announced a new support solutions program to reinforce our services offerings, and continued building on solid traction in our core markets. And with new significant customer wins in April, the fourth quarter is off to a strong start as well.”   In this press release, SGI uses certain pro forma financial measures that are not calculated in accordance with GAAP, or non-GAAP financial measures. These measures are referred to as “pro forma” in this press release. In addition, the company uses bookings and backlog to measure performance. Bookings, also referred to as orders, reflect authorized orders for SGI products and professional services accepted 1140 E. Arques Ave.   Sunnyvale, CA 94085   Telephone 650.960.1980   sgi.com   MEDIA CONTACT   Marla Robinson   marlar@sgi.com   256.773.2371   SGI PR HOTLINE   650.933.7777   SGI PR FACSIMILE   650.933.0714

—more—

SGI Reports Third Quarter Fiscal Year 2008 Results/2

in the period that are expected to ship in the next twelve months. Backlog is the cumulative bookings for which the company has not yet recognized revenue. Management believes that these non-GAAP financial measures, bookings and backlog are useful to investors because they facilitate period to period comparisons of SGI performance and because they help investors view the company’s results of operations through the eyes of management and the company’s lenders. SGI’s credit line covenants, management reporting and incentive plans are measured against certain of these non-GAAP financial measures.

GAAP Q3 Results

GAAP revenue for the third quarter was $79.1 million, compared to $90.1 million in the second quarter. The third quarter GAAP operating loss was $40.6 million, compared to $30.8 million in the second quarter of fiscal 2008. GAAP operating expenses were $59.2 million for the third quarter of 2008, as compared to $58.6 million for the second quarter of fiscal 2008.

Pro Forma Q3 Results

Pro forma revenue was $80.9 million in the third quarter of fiscal 2008, compared with $109.1 million in the second quarter of fiscal 2008. Backlog at the end of the third quarter of 2008 grew to $133.9 million compared to $95.8 million at the end of the second quarter of fiscal 2008, the highest backlog level in the past five quarters.

“We are on track with growth in bookings, with much of the growth being attributable to significant wins and large long-term installations,” said Kathy Lanterman, SGI Chief Financial Officer. “As we have said, our challenge is the revenue conversion cycle for these long-term orders, where revenue is not recognized for several months or quarters after we receive an order. We expect our operating results to improve as our growing backlog starts converting to revenue over the next two quarters.”

Pro forma revenue excludes the impact of fresh-start accounting and the deferral of the company’s recognition of revenues for certain of the company’s transactions where software is more than incidental to the overall solution pursuant to AICPA Statement of Position 97-2, Software Revenue Recognition (“SOP 97-2”). Pro forma gross margin for the third quarter, which is adjusted for similar items, was 26.9 percent compared with 35.7 percent in the second quarter of fiscal 2008. Pro forma operating expenses, which exclude restructuring and reorganization-related expenses, the non-cash impact of the acquisition of IP assets of Linux Networx, stock-based compensation expense and the impact of fresh start accounting, were $52.7 million in the third quarter of fiscal 2008 compared with $55.3 million in the second quarter of fiscal 2008. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of fiscal 2008, as defined in the company’s debt agreements, were a loss of $25.7 million, compared with an $11.0 million loss for the second quarter of fiscal 2008.

A reconciliation of the non-GAAP financial measures used in this press release to the company’s GAAP results of operations, including an illustration of the impact of the company’s fresh start accounting and the impact of the implementation of SOP 97-2, is attached to this press release and is also available at www.sgi.com/company_info/investors.

Strong Start to Fourth Quarter

SGI also reported that it has secured several major domestic and international wins during the fourth quarter to date. These included:

• NASA chose SGI to supply its next major supercomputer, a 20,480-core, 20TB SGI^® Altix^® ICE system, after a competitive evaluation the space agency launched last year. The new supercomputer will support NASA’s aeronautics, science, space operations and space exploration initiatives, including its plan to resume manned missions to the moon and eventually manned exploration of Mars.

SGI Reports Third Quarter Fiscal Year 2008 Results/3

• SGI entered into a multi-year agreement with total contract payments to SGI expected to be more than $25M with a major national European supercomputing center to equip the institution with high-performance SGI computing and storage solutions. The systems will be used to drive multiple applications and manage massive amounts of data.

• SGI also will provide a large European weather service with an extensive data warehouse solution, which will run Oracle 10g and Oracle Clusterware. The solution incorporates SGI Altix 4700 and SGI Altix 450 servers, and will enable the weather service to analyze more than 30 years of meteorological data – a challenge that represents 360 terabytes of user data.

“We believe this quarter’s wins show significant momentum for SGI across multiple geographies and product lines,” added Ewald. “Our ability to prevail in many exceptionally competitive sales situations shows that customers recognize the value of open-standards-based solutions that deliver superior price/performance and leading energy efficiency.”

Recent SGI Announcements

• Virtu VN200: A high density, highly scalable visualization system that can fully incorporate leading edge visualization capabilities into the full line of SGI Altix, SGI Altix XE and SGI Altix ICE servers.

• InfiniteStorage 4600: A new flagship RAID storage system that augments the InfiniteStorage product line and helps organizations meet the escalating bandwidth and I/O demands of today’s performance-driven applications.

• Virtualized Storage Migration Solution: The new solution allows enterprises to choose the storage device that best suits their needs – an advantage that can lead to better data utilization and significantly lower ownership costs. The new solution also allows enterprises to migrate data without disrupting operations.

• Climate Savers: SGI joined the Climate Savers Computing Initiative, a nonprofit group of consumers, businesses and conservation organizations dedicated to improving the power efficiency and reducing the energy consumption of computers.

• Support Solutions Plus: Through this new services support program, SGI provides a single, centralized contact for technical support, secured site management, and parts logistics requirements for many other vendors’ products as well as SGI products.

• SGI Altix ICE enhancements: This quarter Altix ICE boasts new blade enclosures and blade options that increase the performance density of the platform by including improvements to memory, bandwidth and interconnect performance, and an enhanced cluster management environment, as well as make use of the next-generation InfiniBand chip technology.

• The NBA and SGI announced a multi-year extension of their relationship to expand the league’s groundbreaking digital workflow and media management system, the NBA Digital Media Management System. The extended relationship will enable NBA to accelerate and double the historical digital archiving effort by ingesting 60,000 hours of video content each year.

SGI Reports Third Quarter Fiscal Year 2008 Results/4

Conference Call

SGI will conduct a conference call today at 2 p.m. PT to provide additional details. The webcast and presentation materials are available at www.sgi.com/company_info/investors/. The conference call can be accessed by dialing (877) 495-0297 or (706) 643-9931 for participants outside of North America, conference ID: 45113222. An audio replay of this call will be available after 5 p.m. PT today at (800) 642-1687 or (706) 645-9291 (passcode: 45113222) and will be available until May 13, 2008 midnight PT. After May 13, 2008, the call will be available as an archived webcast. All links to the archived webcast, presentation materials and audio replay are available through the SGI web site at www.sgi.com/company_info/investors/.

SGI - Innovation for Results™

SGI (NASDAQ: SGIC) is a leader in high-performance computing. SGI delivers a complete range of high-performance server, visualization and storage solutions along with industry-leading professional services and support that enable its customers to overcome the challenges of complex data-intensive workflows and accelerate breakthrough discoveries, innovation and information transformation. SGI helps customers solve significant challenges, whether it’s enhancing the quality of life through drug research, designing and manufacturing safer and more efficient cars and airplanes, studying global climate change, providing technologies for homeland security and defense, or helping enterprises manage large amounts of data. With offices worldwide, the company is headquartered in Sunnyvale, California, and can be found on the Web at sgi.com.

—end—

^© 2008 SGI. All rights reserved. SGI, the SGI cube, the SGI logo and Altix are registered trademarks of SGI in the United States and/or other countries worldwide. All other registered trademarks mentioned herein are the property of their respective owners.

This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth herein, including increased demands on our working capital due to growth in backlog, in particular for large deals; our ability to raise additional capital in the future on commercially attractive terms or at all, which would restrict our growth and impair our ability to operate; our historical losses and possible failure to attain profitability on a quarterly, annual or sustained basis and risks related to the impact on our business of cost reduction initiatives to be effected in the coming quarters to bring costs more in line with current revenues; our operating results continuing to fluctuate significantly and continuing to be difficult to predict; our stock continuing to have extremely low trading volume and price volatility; our failure to continue growth in bookings, delays in the conversion of backlog to revenue due to application of SOP 97-2, shipment delays and the other risks and uncertainties discussed under the caption “Risk Factors” and elsewhere in SGI’s Form 10-K or Form 10-Q most recently filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. SGI disclaims any intent or obligation to update these forward-looking statements.

SILICON GRAPHICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts, unaudited)

	Successor Company												Predecessor Company
	Three Months Ended						Nine Months Ended			Six Months Ended			Three Months Ended
	Mar. 28, 2008			Mar. 30, 2007			Mar. 28, 2008			Mar. 30, 2007			Sep. 28, 2006
Product and other revenue	$	29,592		$	56,117		$	110,194		$	114,797		$	45,229
Product revenue from related party (1)		6,340			2,454			14,747			7,456			15,377
Global services revenue		43,146			52,475			135,333			96,516			61,199
Total revenue		79,078			111,046			260,274			218,769			121,805
Costs and expenses:
Cost of product and other revenue		32,038			41,330			104,668			101,248			42,710
Cost of global services revenue		28,446			33,025			81,645			62,412			32,265
Research and development (2)		16,520			14,186			44,280			29,170			16,007
Selling, general and administrative		42,484			42,017			127,871			83,623			42,359
Other operating expense, net		230			358			425			3,243			3,926
Total costs and expenses		119,718			130,916			358,889			279,696			137,267
Operating loss		(40,640	)		(19,870	)		(98,615	)		(60,927	)		(15,462	)
Interest expense		(2,049	)		(1,430	)		(5,051	)		(3,432	)		(7,688	)
Interest expense from related parties		(1,921	)		(1,406	)		(4,861	)		(2,562	)		—
Interest and other income (expense), net (3)		4,996			174			(2,357	)		1,373			11,391
Loss before reorganization items and income taxes		(39,614	)		(22,532	)		(110,884	)		(65,548	)		(11,759	)
Reorganization items, net		—			—			—			—			340,397
Income (loss) before income taxes		(39,614	)		(22,532	)		(110,884	)		(65,548	)		328,638
Income tax provision		119			488			7,218			1,166			2,382
Net income (loss)	$	(39,733	)	$	(23,020	)	$	(118,102	)	$	(66,714	)	$	326,256
Net income (loss) per share:
Basic	$	(3.49	)	$	(2.07	)	$	(10.53	)	$	(6.00	)	$	1.20
Diluted	$	(3.49	)	$	(2.07	)	$	(10.53	)	$	(6.00	)	$	0.77
Weighted-average shares used to compute net income (loss) per share:
Basic		11,372			11,125			11,215			11,125			271,563
Diluted		11,372			11,125			11,215			11,125			423,875

(1) Represents product sales to SGI Japan, a related party of which we owned a 10% interest at March 28, 2008 and at September 29, 2006.

(2) The three-month period ended March 28, 2008 includes approximately $2 million of in-process research and development resulting from our acquisition of certain assets formerly owned by Linux Networx, Inc.

(3) The three-month period ended March 28, 2008 includes a gain of approximately $4 million on the sale of our investment in MicroUnity Systems Engineering, Inc. The nine-month period ended March 28, 2008 includes a write-down of approximately $6 million of our equity investment in SGI Japan to the estimated fair value of the investment, which was approximately $15 million at March 28, 2008. The three-month period ended September 29, 2006 includes a pre-tax gain of approximately $10 million on the sale of a portion of the Predecessor Company's investment in SGI Japan.

SILICON GRAPHICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

	March 28, 2008			June 29, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	42,731		$	69,887
Short-term marketable investments		22			223
Short-term restricted investments		9,460			6,763
Accounts receivable, net		46,939			47,643
Inventories		73,394			54,354
Prepaid expenses		8,923			6,153
Other current assets		52,486			49,576
Total current assets		233,955			234,599
Restricted investments		434			302
Property and equipment, net		43,085			43,392
Other intangibles, net		60,860			71,264
Other non-current assets, net		71,948			59,501
Total assets	$	410,282		$	409,058
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	22,070		$	14,387
Accrued compensation		36,886			35,382
Income taxes payable		3,915			2,209
Other current liabilities		43,897			44,420
Current portion of long-term debt		8,513			261
Current portion of deferred revenue		110,590			84,798
Current portion of restructuring liability		1,075			1,410
Total current liabilities		226,946			182,867
Long-term debt		124,000			85,000
Non-current portion of deferred revenue		57,882			32,362
Other non-current liabilities		25,997			24,370
Total liabilities		434,825			324,599
Total stockholders' equity (deficit)		(24,543	)		84,459
Total liabilities and stockholders' equity	$	410,282		$	409,058

Calculation of Non-GAAP Quarterly Results of Operations and Adjusted EBITDA

					Successor Company															Predecessor Company
	Three Months Ended:	28-Mar-08			28-Dec-07			28-Sep-07			29-Jun-07			30-Mar-07			29-Dec-06			29-Sep-06			30-Jun-06			31-Mar-06			30-Dec-05			30-Sep-05			FY2007			FY2006
					(in thousands)
Total revenue (GAAP)		$	79,078		$	90,111		$	91,085		$	122,295		$	111,046		$	107,723		$	121,805		$	115,708		$	105,562		$	136,796		$	160,739		$	462,869		$	518,805
Plus:	Fresh-start accounting adjustments		2,046			2,094			3,835			5,472			8,329			15,877			—			—			—			—			—			29,678			—
	SOP 97-2 revenue deferrals (1)		(253	)		16,935			25,813			13,726			10,392			10,544			5,154			13,476			2,112			7,597			8,938			39,816			32,123
	Non-GAAP total revenue		80,871			109,140			120,733			141,493			129,767			134,144			126,959			129,184			107,674			144,393			169,677			532,363			550,928
Cost of revenue (GAAP)			60,484			62,248			63,581			90,148			74,355			89,305			74,975			70,532			68,227			80,952			100,722			328,783			320,433
Plus:	Fresh-start accounting adjustments		(1,492	)		(3,834	)		(2,762	)		(6,644	)		(4,703	)		(12,549	)		—			—			—			—			—			(23,896	)		—
	SOP 97-2 revenue deferrals (1)		286			11,794			18,576			8,213			3,574			6,293			2,795			4,675			1,334			3,366			4,810			20,875			14,185
	Depreciation & amortization—Linux Networx		(45	)		—			—			—			—			—			—			—			—			—			—			—			—
	Stock-based compensation expense		(84	)		8			(87	)		(57	)		(45	)		(12	)		7			22			(53	)		(71	)		(228	)		(107	)		(330	)
	Non-GAAP cost of revenue		59,149			70,216			79,308			91,660			73,181			83,037			77,777			75,229			69,508			84,247			105,304			325,655			334,288
Research and development expense (GAAP)			16,520			14,464			13,296			14,870			14,186			14,984			16,007			18,220			20,838			21,254			23,365			60,047			83,677
Plus:	Fresh-start accounting adjustments		(108	)		(12	)		47			65			52			(348	)		—			—			—			—			—			(231	)		—
	Depreciation & amortization—Linux Networx		(60	)		—			—			—			—			—			—			—			—			—			—			—			—
	Write-off of in-process R&D—Linux Networx		(2,400	)		—			—			—			—			—			—			—			—			—			—			—			—
	Stock-based compensation expense		(320	)		(253	)		(309	)		(257	)		(200	)		(58	)		5			32			(112	)		(231	)		(300	)		(510	)		(611	)
	Non-GAAP research and development expense		13,632			14,199			13,034			14,678			14,038			14,578			16,012			18,252			20,726			21,023			23,065			59,306			83,066
Selling, general and administrative expenses (GAAP)			42,484			44,163			41,224			41,697			42,017			41,606			42,359			42,903			59,722			57,627			59,865			167,679			220,117
Plus:	Fresh-start accounting adjustments		(2,545	)		(2,525	)		(2,076	)		(2,580	)		(2,587	)		(2,635	)		—			—			—			—			—			(7,802	)		—
	Restructuring and bankruptcy related expenses		—			—			—			—			—			—			—			—			(3,452	)		(6,413	)		(2,082	)		—			(11,947	)
	Goodwill impairment		—			—			—			—			—			—			—			—			(8,386	)		—			—			—			(8,386	)
	Depreciation & amortization—Linux Networx		(118	)		—			—			—			—			—			—			—			—			—			—			—			—
	Stock-based compensation expense		(705	)		(530	)		(718	)		(581	)		(949	)		(54	)		(134	)		(64	)		(344	)		(381	)		(455	)		(1,718	)		(1,244	)
	Non-GAAP selling, general and administrative expenses		39,116			41,108			38,430			38,536			38,481			38,917			42,225			42,839			47,540			50,833			57,328			158,159			198,540
Other operating expenses (GAAP)			230			20			175			358			358			2,885			3,926			(7,694	)		11,550			10,114			7,185			7,527			21,155
Plus:	Restructuring and bankruptcy related expenses		(230	)		(20	)		(175	)		(358	)		(358	)		(2,885	)		(3,926	)		7,694			(11,550	)		(10,114	)		(7,185	)		(7,527	)		(21,155	)
	Non-GAAP other operating expenses		—			—			—			—			—			—			—			—			—			—			—			—			—
	Operating expenses (GAAP)		59,234			58,647			54,695			56,925			56,561			59,475			62,292			53,429			92,110			88,995			90,415			235,253			324,949
Plus:	Fresh-start accounting adjustments		(2,653	)		(2,537	)		(2,029	)		(2,515	)		(2,535	)		(2,983	)		—			—			—			—			—			(8,033	)		—
	Stock-based compensation expense		(1,025	)		(783	)		(1,027	)		(838	)		(1,149	)		(112	)		(129	)		(32	)		(456	)		(612	)		(755	)		(2,228	)		(1,855	)
	Goodwill impairment		—			—			—			—			—			—			—			—			(8,386	)		—			—			—			(8,386	)
	Depreciation & amortization—Linux Networx		(178	)		—			—			—			—			—			—			—			—			—			—			—			—
	Write-off of in-process R&D—Linux Networx		(2,400	)		—			—			—			—			—			—			—			—			—			—			—			—
	Restructuring and bankruptcy related expenses		(230	)		(20	)		(175	)		(358	)		(358	)		(2,885	)		(3,926	)		7,694			(15,002	)		(16,527	)		(9,267	)		(7,527	)		(33,102	)
	Non-GAAP operating expenses		52,748			55,307			51,464			53,214			52,519			53,495			58,237			61,091			68,266			71,856			80,393			217,465			281,606
Operating income (loss) (GAAP)			(40,640	)		(30,784	)		(27,191	)		(24,778	)		(19,870	)		(41,057	)		(15,462	)		(8,253	)		(54,775	)		(33,151	)		(30,398	)		(101,167	)		(126,577	)
Plus:	Fresh-start accounting adjustments		6,191			8,465			8,626			14,631			15,567			31,409			—			—			—			—			—			61,607			—
	SOP 97-2 revenue deferrals (1)		(539	)		5,141			7,237			5,513			6,818			4,251			2,359			8,801			778			4,231			4,128			18,941			17,938
	Stock-based compensation expense		1,109			775			1,114			895			1,194			124			122			10			509			683			983			2,335			2,185
	Goodwill impairment		—			—			—			—			—			—			—			—			8,386			—			—			—			8,386
	Depreciation & amortization—Linux Networx		223			—			—			—			—			—			—			—			—			—			—			—			—
	Write-off of in-process R&D—Linux Networx		2,400			—			—			—			—			—			—			—			—			—			—			—			—
	Restructuring and bankruptcy related expenses		230			20			175			358			358			2,885			3,926			(7,694	)		15,002			16,527			9,267			7,527			33,102
	Non-GAAP operating income (loss) (2):		(31,026	)		(16,383	)		(10,039	)		(3,381	)		4,067			(2,388	)		(9,055	)		(7,136	)		(30,100	)		(11,710	)		(16,020	)		(10,757	)		(64,966	)
Plus:	Depreciation		5,427			5,414			6,224			6,169			6,128			6,552			6,467			10,003			10,898			11,959			13,379			25,316			46,239
	Adjusted EBITDA		(25,599	)		(10,969	)		(3,815	)		2,788			10,195			4,164			(2,588	)		2,867			(19,202	)		249			(2,641	)		14,559			(18,727	)

Calculation of Non-GAAP Revenues by Reporting Segment(1)

					Successor Company											Predecessor Company
Three Months Ended:		28-Mar-08			28-Dec-07			28-Sep-07		29-Jun-07		30-Mar-07		29-Dec-06		29-Sep-06			30-Jun-06			31-Mar-06			30-Dec-05			30-Sep-05		FY2007		FY2006
					(in thousands)
Core systems:
	Server products (GAAP)	$	22,703		$	23,282		$	31,627	$	47,926	$	32,692	$	40,954	$	34,914		$	21,168		$	20,484		$	28,182		$	53,993	$	156,486	$	123,827
Plus:	Fresh-start accounting adjustments		306			196			22		332		1,100		1,109		—			—			—			—			—		2,541		—
	SOP 97-2 revenue deferrals (2)		(346	)		12,324			20,887		6,067		4,857		4,075		2,304			3,895			30			2,485			2,524		17,303		8,934
	Non-GAAP server products revenue		22,663			35,802			52,536		54,325		38,649		46,138		37,218			25,063			20,514			30,667			56,517		176,330		132,761
	Storage products revenue (GAAP)		8,374			13,505			8,233		14,486		12,063		10,920		12,750			13,134			11,798			11,185			13,816		50,219		49,933
Plus:	Fresh-start accounting adjustments		—			—			—		293		—		320		—			—			—			—			—		613		—
	SOP 97-2 revenue deferrals (2)		203			2,303			3,377		5,392		2,676		3,834		1,584			1,288			854			2,070			2,766		13,486		6,978
	Non-GAAP storage products revenue		8,577			15,808			11,610		20,171		14,739		15,074		14,334			14,422			12,652			13,255			16,582		64,318		56,911
	Non-GAAP core systems revenue		31,240			51,610			64,146		74,496		53,388		61,212		51,552			39,485			33,166			43,922			73,099		240,648		189,672
Legacy systems:
	Legacy systems (GAAP)		4,855			6,626			5,736		11,846		13,816		11,808		12,942			14,701			13,810			27,095			22,729		50,412		78,335
Plus:	Fresh-start accounting adjustments		—			—			—		—		37		1,952		—			—			—			—			—		1,989		—
	SOP 97-2 revenue deferrals (2)		(348	)		1,190			424		259		634		895		(580	)		7,169			1,338			2,933			2,940		1,208		14,380
	Non-GAAP legacy systems revenue		4,507			7,816			6,160		12,105		14,487		14,655		12,362			21,870			15,148			30,028			25,669		53,609		92,715
	Non-GAAP products revenue		35,747			59,426			70,306		86,601		67,875		75,867		63,914			61,355			48,314			73,950			98,768		294,257		282,387
Global services:
	Customer support (GAAP)		35,163			40,193			38,231		39,332		37,527		35,080		48,396			49,552			52,053			55,304			57,174		160,335		214,083
Plus:	Fresh-start accounting adjustments		1,345			1,898			3,813		4,789		6,545		12,228		—			—			—			—			—		23,562		—
	SOP 97-2 revenue deferrals (2)		(316	)		(2,215	)		77		677		159		231		144			1,299			(190	)		(317	)		97		1,211		889
	Non-GAAP customer support revenue		36,192			39,876			42,121		44,798		44,231		47,539		48,540			50,851			51,863			54,987			57,271		185,108		214,972
	Professional services (GAAP)		7,983			6,505			7,258		8,705		14,948		8,961		12,803			17,153			7,417			15,030			13,027		45,417		52,627
Plus:	Fresh-start accounting adjustments		395			—			—		58		647		268		—			—			—			—			—		973		—
	SOP 97-2 revenue deferrals (2)		554			3,333			1,048		1,331		2,066		1,509		1,702			(175	)		80			426			611		6,608		942
	Non-GAAP professional services revenue		8,932			9,838			8,306		10,094		17,661		10,738		14,505			16,978			7,497			15,456			13,638		52,998		53,569
	Non-GAAP global services revenue		45,124			49,714			50,427		54,892		61,892		58,277		63,045			67,829			59,360			70,443			70,909		238,106		268,541
	Non-GAAP revenue	$	80,871		$	109,140		$	120,733	$	141,493	$	129,767	$	134,144	$	126,959		$	129,184		$	107,674		$	144,393		$	169,677	$	532,363	$	550,928

(1) For each of the periods indicated, non-GAAP core systems revenue is obtained by adding non-GAAP server products revenue and non-GAAP storage products revenue, non-GAAP products revenue is obtained by adding non-GAAP core systems revenue and non-GAAP legacy systems revenue, non-GAAP global services revenue is obtained by adding non-GAAP customer support revenue and non-GAAP professional services revenue and non-GAAP revenue is obtained by adding non-GAAP products revenue and non-GAAP global services revenue. This table includes a reconciliation of each listed component to the comparable GAAP figures.

(2) The non-GAAP adjustments for SOP 97-2 are indicative of the revenue results the company would have recorded without the effect of SOP 97-2, although these are unaudited adjustments. We believe that this presentation more closely matches the results that would have been recorded had SAB 104 been applied, in which case the revenue for the hardware components of the arrangement would have been recorded when those deliverables were completed, and the primary remaining deliverable is customer support. Generally, this presentation matches the timing of billings to customers for the hardware deliverables, and therefore allows more transparency to cashflows.

					Successor Company															Predecessor Company
Three Months Ended:		28-Mar-08			28-Dec-07			28-Sep-07			29-Jun-07			30-Mar-07			29-Dec-06			29-Sep-06			30-Jun-06			31-Mar-06			30-Dec-05			30-Sep-05			FY2007			FY2006
					(in thousands)
Products revenue (GAAP)		$	35,932		$	43,413		$	45,596		$	74,258		$	58,571		$	63,682		$	60,606		$	49,003		$	46,092		$	66,462		$	90,538		$	257,117		$	252,095
Plus:	Fresh-start accounting adjustments		306			196			22			625			1,137			3,381			—			—			—			—			—			5,143			—
	SOP 97-2 revenue deferrals (1)		(491	)		15,817			24,688			11,718			8,167			8,804			3,308			12,352			2,222			7,488			8,230			31,997			30,292
	Non-GAAP products revenue		35,747			59,426			70,306			86,601			67,875			75,867			63,914			61,355			48,314			73,950			98,768			294,257			282,387
Global services revenue (GAAP)			43,146			46,698			45,489			48,037			52,475			44,041			61,199			66,705			59,470			70,334			70,201			205,752			266,710
Plus:	Fresh-start accounting adjustments		1,740			1,898			3,813			4,847			7,192			12,496			—			—			—			—			—			24,535			—
	SOP 97-2 revenue deferrals (1)		238			1,118			1,125			2,008			2,225			1,740			1,846			1,124			(110	)		109			708			7,819			1,831
	Non-GAAP global services revenue		45,124			49,714			50,427			54,892			61,892			58,277			63,045			67,829			59,360			70,443			70,909			238,106			268,541
Total revenue (GAAP)			79,078			90,111			91,085			122,295			111,046			107,723			121,805			115,708			105,562			136,796			160,739			462,869			518,805
Plus:	Fresh-start accounting adjustments		2,046			2,094			3,835			5,472			8,329			15,877			—			—			—			—			—			29,678			—
	SOP 97-2 revenue deferrals (1)		(253	)		16,935			25,813			13,726			10,392			10,544			5,154			13,476			2,112			7,597			8,938			39,816			32,123
	Non-GAAP total revenue		80,871			109,140			120,733			141,493			129,767			134,144			126,959			129,184			107,674			144,393			169,677			532,363			550,928
Products cost of revenue (GAAP)			32,038			34,938			37,692			61,114			41,330			59,918			42,710			36,218			35,042			43,517			62,550			205,072			177,327
Plus:	Fresh-start accounting adjustments		(1,588	)		(3,789	)		(2,718	)		(6,814	)		(5,329	)		(12,875	)		—			—			—			—			—			(25,018	)		—
	SOP 97-2 revenue deferrals (1)		(50	)		9,913			18,092			7,966			2,454			5,318			2,114			4,518			1,180			2,941			4,215			17,852			12,854
	Depreciation & amortization—Linux Networx		(24	)		—			—			—			—			—			—			—			—			—			—			—			—
	Stock-based compensation expense		(39	)		(34	)		(27	)		(24	)		(21	)		(6	)		—			4			(14	)		(24	)		(54	)		(51	)		(88	)
	Non-GAAP products cost of revenue		30,337			41,028			53,039			62,242			38,434			52,355			44,824			40,740			36,208			46,434			66,711			197,855			190,093
Global services cost of revenue (GAAP)			28,446			27,310			25,889			29,034			33,025			29,387			32,265			34,314			33,185			37,435			38,172			123,711			143,106
Plus:	Fresh-start accounting adjustments		96			(45	)		(44	)		170			626			326			—			—			—			—			—			1,122			—
	SOP 97-2 revenue deferrals (1)		336			1,881			484			247			1,120			975			681			157			154			425			595			3,023			1,331
	Depreciation & amortization—Linux Networx		(21	)		—			—			—			—			—			—			—			—			—			—			—			—
	Stock-based compensation expense		(45	)		42			(60	)		(33	)		(24	)		(6	)		7			18			(39	)		(47	)		(174	)		(56	)		(242	)
	Non-GAAP global services cost of revenue		28,812			29,188			26,269			29,418			34,747			30,682			32,953			34,489			33,300			37,813			38,593			127,800			144,195
Cost of revenue (GAAP)			60,484			62,248			63,581			90,148			74,355			89,305			74,975			70,532			68,227			80,952			100,722			328,783			320,433
Plus:	Fresh-start accounting adjustments		(1,492	)		(3,834	)		(2,762	)		(6,644	)		(4,703	)		(12,549	)		—			—			—			—			—			(23,896	)		—
	SOP 97-2 revenue deferrals (1)		286			11,794			18,576			8,213			3,574			6,293			2,795			4,675			1,334			3,366			4,810			20,875			14,185
	Depreciation & amortization—Linux Networx		(45	)		—			—			—			—			—			—			—			—			—			—			—			—
	Stock-based compensation expense		(84	)		8			(87	)		(57	)		(45	)		(12	)		7			22			(53	)		(71	)		(228	)		(107	)		(330	)
	Non-GAAP cost of revenue		59,149			70,216			79,308			91,660			73,181			83,037			77,777			75,229			69,508			84,247			105,304			325,655			334,288
Products gross profit (GAAP)			3,894			8,475			7,904			13,144			17,241			3,764			17,896			12,785			11,050			22,945			27,988			52,045			74,768
Plus:	Fresh-start accounting adjustments		1,894			3,985			2,740			7,439			6,466			16,256			—			—			—			—			—			30,161			—
	SOP 97-2 revenue deferrals (1)		(441	)		5,904			6,596			3,752			5,713			3,486			1,194			7,834			1,042			4,547			4,015			14,145			17,438
	Depreciation & amortization—Linux Networx		24			—			—			—			—			—			—			—			—			—			—			—			—
	Stock-based compensation expense		39			34			27			24			21			6			—			(4	)		14			24			54			51			88
	Non-GAAP products gross profit		5,410			18,398			17,267			24,359			29,441			23,512			19,090			20,615			12,106			27,516			32,057			96,402			92,294
	Non-GAAP products gross profit margin		15.1	%		31.0	%		24.6	%		28.1	%		43.4	%		31.0	%		29.9	%		33.6	%		25.1	%		37.2	%		32.5	%		32.8	%		32.7	%
Global services gross profit (GAAP)			14,700			19,388			19,600			19,003			19,450			14,654			28,934			32,391			26,285			32,899			32,029			82,041			123,604
Plus:	Fresh-start accounting adjustments		1,644			1,943			3,857			4,677			6,566			12,170			—			—			—			—			—			23,413			—
	SOP 97-2 revenue deferrals (1)		(98	)		(763	)		641			1,761			1,105			765			1,165			967			(264	)		(316	)		113			4,796			500
	Depreciation & amortization—Linux Networx		21			—			—			—			—			—			—			—			—			—			—			—			—
	Stock-based compensation expense		45			(42	)		60			33			24			6			(7	)		(18	)		39			47			174			56			242
	Non-GAAP global services gross profit		16,312			20,526			24,158			25,474			27,145			27,595			30,092			33,340			26,060			32,630			32,316			110,306			124,346
	Non-GAAP global services gross profit margin		36.1	%		41.3	%		47.9	%		46.4	%		43.9	%		47.4	%		47.7	%		49.2	%		43.9	%		46.3	%		45.6	%		46.3	%		46.3	%
Gross profit (GAAP)			18,594			27,863			27,504			32,147			36,691			18,418			46,830			45,176			37,335			55,844			60,017			134,086			198,372
Plus:	Fresh-start accounting adjustments		3,538			5,928			6,597			12,116			13,032			28,426			—			—			—			—			—			53,574			—
	SOP 97-2 revenue deferrals (1)		(539	)		5,141			7,237			5,513			6,818			4,251			2,359			8,801			778			4,231			4,128			18,941			17,938
	Depreciation & amortization—Linux Networx		45			—			—			—			—			—			—			—			—			—			—			—			—
	Stock-based compensation expense		84			(8	)		87			57			45			12			(7	)		(22	)		53			71			228			107			330
	Non-GAAP gross profit		21,722			38,924			41,425			49,833			56,586			51,107			49,182			53,955			38,166			60,146			64,373			206,708			216,640
	Non-GAAP gross profit margin		26.9	%		35.7	%		34.3	%		35.2	%		43.6	%		38.1	%		38.7	%		41.8	%		35.4	%		41.7	%		37.9	%		38.8	%		39.3	%

Calculation of Non-GAAP Quarterly Products Standard Profit Margin

		Successor Company
Three Months Ended:		28-Mar-08			28-Dec-07			28-Sep-07			29-Jun-07			30-Mar-07
		(in thousands)
Total products revenue (GAAP)		$	35,932		$	43,413		$	45,596		$	74,258		$	58,571
Less:	Other revenue		(1,015	)		(286	)		(395	)		(810	)		(248	)
Plus:	Fresh-start accounting adjustments		306			196			22			625			1,137
	SOP 97-2 revenue deferrals		(491	)		15,817			24,688			11,718			8,167
	Non-GAAP total products revenue		34,732			59,140			69,911			85,791			67,627
Products standard cost of revenue (GAAP)			20,549			24,919			28,163			48,084			32,497
Plus:	Fresh-start accounting adjustments		(441	)		(2,521	)		(1,555	)		(5,144	)		(3,736	)
	SOP 97-2 revenue deferrals		(50	)		9,913			18,092			7,966			2,454
	Non-GAAP products standard cost of revenue		20,058			32,311			44,700			50,906			31,215
Products standard margin (GAAP)			14,368			18,208			17,038			25,364			25,826
Plus:	Fresh-start accounting adjustments		747			2,717			1,577			5,769			4,873
	SOP 97-2 revenue deferrals		(441	)		5,904			6,596			3,752			5,713
	Non-GAAP products standard margin		14,674			26,829			25,211			34,885			36,412
	Non-GAAP products standard margin		42.2%			45.4%			36.1%			40.7%			53.8%

Calculation of Non-GAAP Revenue by Reporting Segment

		Successor Company															Predecessor Company
Three Months Ended:		28-Mar-08			28-Dec-07			28-Sep-07			29-Jun-07		30-Mar-07		29-Dec-06		29-Sep-06
		(in thousands)
Core systems:
	Shared memory products (GAAP)	$	15,031		$	19,312		$	21,318		$	43,526	$	30,328	$	39,237	$	34,331
Plus:	Fresh-start accounting adjustments		306			196			22			332		1,100		1,091		—
	SOP 97-2 revenue deferrals		(1,949	)		6,167			16,788			4,955		4,834		3,912		2,304
	Non-GAAP shared memory products revenue		13,388			25,675			38,128			48,813		36,262		44,240		36,635
	Cluster products (GAAP)	$	7,672		$	3,970		$	10,309		$	4,400	$	2,364	$	1,717	$	583
Plus:	Fresh-start accounting adjustments		—			—			—			—		—		18		—
	SOP 97-2 revenue deferrals		1,603			6,157			4,099			1,112		23		163		—
	Non-GAAP cluster products revenue		9,275			10,127			14,408			5,512		2,387		1,898		583
	Storage products revenue (GAAP)		8,374			13,505			8,233			14,486		12,063		10,920		12,750
Plus:	Fresh-start accounting adjustments		—			—			—			293		—		320		—
	SOP 97-2 revenue deferrals		203			2,303			3,377			5,392		2,676		3,834		1,584
	Non-GAAP storage products revenue		8,577			15,808			11,610			20,171		14,739		15,074		14,334
	Non-GAAP core systems revenue		31,240			51,610			64,146			74,496		53,388		61,212		51,552
Legacy systems:
	Server products (GAAP)		4,523			6,216			4,887			11,265		12,612		10,966		12,324
Plus:	Fresh-start accounting adjustments		—			—			—			—		37		1,588		—
	SOP 97-2 revenue deferrals		(296	)		1,223			516			176		600		703		(504	)
	Non-GAAP server products revenue		4,227			7,439			5,403			11,441		13,249		13,257		11,820
	Storage products (GAAP)		332			410			849			581		1,204		842		618
Plus:	Fresh-start accounting adjustments		—			—			—			—		—		364		—
	SOP 97-2 revenue deferrals		(52	)		(33	)		(92	)		83		34		192		(76	)
	Non-GAAP storage products revenue		280			377			757			664		1,238		1,398		542
	Non-GAAP legacy systems revenue		4,507			7,816			6,160			12,105		14,487		14,655		12,362
Global services:
	Customer support (GAAP)		35,163			40,193			38,231			39,332		37,527		35,080		48,396
Plus:	Fresh-start accounting adjustments		1,345			1,898			3,813			4,789		6,545		12,228		—
	SOP 97-2 revenue deferrals		(316	)		(2,215	)		77			677		159		231		144
	Non-GAAP customer support revenue		36,192			39,876			42,121			44,798		44,231		47,539		48,540
	Professional services (GAAP)		7,983			6,505			7,258			8,705		14,948		8,961		12,803
Plus:	Fresh-start accounting adjustments		395			—			—			58		647		268		—
	SOP 97-2 revenue deferrals		554			3,333			1,048			1,331		2,066		1,509		1,702
	Non-GAAP professional services revenue		8,932			9,838			8,306			10,094		17,661		10,738		14,505
	Non-GAAP global services revenue		45,124			49,714			50,427			54,892		61,892		58,277		63,045
	Non-GAAP revenue	$	80,871		$	109,140		$	120,733		$	141,493	$	129,767	$	134,144	$	126,959

Calculation of Non-GAAP Quarterly Backlog

		Successor Company
Three Months Ended:		28-Mar-08			28-Dec-07			28-Sep-07			29-Jun-07			30-Mar-07
		(in millions)
Total beginning backlog (GAAP)		$	163		$	113		$	89		$	118		$	136
Plus:	Bookings		83			100			77			54			55
	Products and professional services revenue (GAAP)		(44	)		(50	)		(53	)		(83	)		(73	)
	Total ending backlog (GAAP)	$	202		$	163		$	113		$	89		$	118
Total non-GAAP beginning backlog		$	96		$	65		$	66		$	109		$	139
Plus:	Bookings		83			100			77			54			55
	Non-GAAP products and professional services revenue		(45	)		(69	)		(79	)		(97	)		(85	)
	Total non-GAAP ending backlog	$	134		$	96		$	65		$	66		$	109