SGI to Divest Cosmo Subsidiary
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In a briefing for press and analysts in New York on Tuesday, SGI executives said they were considering a number of options for Cosmo, a maker of VRML software comprised in part of SGI's acquisition last year of Paragraph International.
Cosmo had recently added Java to the list of technologies it was developing and had come out with a version of its software that ran on Windows machines. But applications software in general isn't in the new business strategy the company described on Tuesday. That plan includes a broad streamlining of SGI's product lines and a new commitment to Intel technology.
William M. Kelly, senior vice president for corporate operations at SGI, said one of the options for Cosmo would be to spin it off as an independent company with several owners, of which SGI might be one. Another option would be to sell the technology Cosmo has been developing to an outside company. He did not say who that outside company might be.
SGI, which has seen its market share and profits erode in the last few years, is under pressure to get its costs under control and revitalize growth.