Silicon Graphics Surges On Manufacturing Agreement With Hewlett Packard Enterprise

Shares of Silicon Graphics International Corp (NASDAQ: SGI) surged higher by more than 10 percent on Tuesday after the company announced an agreement with Hewlett Packard Enterprise Co (NYSE: HPE).

HPE said in a blog post that it is "extending our leading portfolio of mission-critical solutions with a new 8-socket scale-up platform – the HPE Integrity MC990 X Server. This new server is designed for large business processing and decision support Linux workloads."

HPE added that it will OEM Silicon Graphics' UV technology as the foundation for its solution.

"SGI is pleased to embark on this strategic partnership with HPE. This agreement highlights the value of SGI solutions to the enterprise market and the benefits of an 8-socket solution. The reach of the SGI technology will be greatly extended with HPE's extensive presence in the enterprise for mission critical solutions," said Jorge Titinger, president and CEO of SGI.

"HPE's selection of SGI technology is a testament to the performance and reliability of the UV platform."