Silicon Graphics Inc, a struggling maker of high-performance business computers, on Monday filed for Chapter 11 bankruptcy protection after a round of restructuring measures failed, sending its shares plunging 75 percent.
In court papers, SGI said it had been challenged by delays in introducing new technology, a focus on more specialised markets and more intense competition from larger rivals.
In January, the Mountain View, California-based company named board member Dennis McKenna as chairman and chief executive, replacing 20-year SGI veteran Robert Bishop.
McKenna has cut spending, but also struggled to cope with disappointing sales. Last month SGI warned that quarterly revenue would miss its own forecasts, saying the shortfall was partly due to uncertainty in the wake of McKenna's arrival.
Silicon Graphics shares were down 24 cents at 8 cents in morning trading. At Friday's close, the stock had fallen 24 percent over the past month. 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 Silicon Graphics filed for the bankruptcy protection in the US Bankruptcy Court for the Southern District of New York.
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