Silicon Graphics, Inc.

By Mary B. Barth, Justin I. McEntee
2000 | Case No. E84
An equity research analyst is trying to decide how to analyze Silicon Graphics’ financial performance. The company reports net income but discloses that it would have had a net loss if its employee stock option-based compensation had been recognized as an expense in the income statement. This case deals with whether and how to measure stock-based employee compensation and its effects on financial performance and investor perceptions of firm value.
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