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FREMONT, Calif.--([ BUSINESS WIRE ])--[ SGIas ] (NASDAQ:SGI) Board of Directors today announced that Mark J. Barrenechea has tendered his resignation as president, chief executive officer and member of the Board of Directors, effective January 1, 2012. Ronald D. Verdoorn, chairman of the Board of Directors, will serve as interim CEO while the board conducts a search for a new CEO. Mr. Barrenechea will join a global enterprise software company as President and CEO.

"On December 7th, we reaffirmed our fiscal year 2012 guidance, and Markas departure does not change that guidance."

aWe are thankful for Markas leadership over the past five years as the company has undergone a successful transformation and achieved profitability,a said Mr. Verdoorn. aWe wish Mark the best in the next phase of his career.a

aSGI will continue its strategic focus on growing revenues and maintaining profitability,a Mr. Verdoorn added. aOn December 7th, we reaffirmed our fiscal year 2012 guidance, and Markas departure does not change that guidance.a

aI am proud of our accomplishments over the past five years as we have transformed SGI and taken the lead in Technical Computing,a said Mr. Barrenechea. aI am sincerely grateful for the support Iave received from the Board of Directors, our customers and our employees. SGI is well positioned and on a clear path to $1B in revenue. While I am transitioning as CEO, I will remain a fan and shareholder of SGI.a

Gary A. Griffiths, the chair of the Nominating and Governance board committee, is leading the search for Mr. Barrenecheaas replacement and has engaged the executive search firm Spencer Stuart to assist.

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Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements; including statements regarding SGI's guidance for 2012 financial performance, general business outlook and anticipated product performance and offerings. Any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Actual results may differ materially from forward-looking statements due to a number of risks and uncertainties including those associated with: SGI's more extensive international operations; economic conditions impacting the purchasing decisions of SGI's customers; SGI operates in a very competitive market, and increased competition and competitors' new products, have in the past, and may continue, to cause pricing pressure on SGI's products, which would negatively affect SGI's gross and operating margins, as well as other financial measures; a significant portion of the Company's revenues has come from a limited number of customers and such customer concentration increases the risk of quarterly fluctuations in our revenues and operating results and the loss or reduction of business from one or a combination of our significant customers could materially affect our revenues, financial condition and results of operations; SGI relies on sales to U.S. government entities and has limited experience dealing with the U.S. government as a customer; SGI is unable to control the supply of components, and, as a result, is experiencing and may experience in the future component shortages and delivery delays that can cause components to not be available at all and the price of components to increase and can result in component quality issues; SGI is unable to control component pricing, such as what our suppliers charge for central processing units, and, as has happened in the past, component pricing can rise unexpectedly, negatively impacting SGI's gross margins as well as other financial measures; SGI's operations in Japan, which may be negatively affected by earthquakes and other natural disasters, as well as potential power supply disruptions following the March 2011 earthquake and tsunami; and SGI may be required to write-off additional significant amounts of excess and obsolete inventory. Detailed information about these and other potential factors that could affect SGI's business, financial condition and results of operations is included in SGI's annual report on Form 10-K under the caption "Risk Factors," in Part I, Item 1A of that report, filed with the Securities and Exchange Commission ("SEC") on August 29, 2011, as updated by SGI's subsequent filings with the SEC, all of which are available at the SEC's Web site at [ http://www.sec.gov ]. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this announcement. SGI undertakes no responsibility to update the information in this announcement, except as may be required by law