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Published on 12/22/1997 All articles from this issue

Troubled Silicon Graphics reaches out with big gifts to two local charities

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By Bruce Barton / Town Crier Staff Writer

After corporate soul-searching, Mountain View-based Silicon Graphics has scrapped its annual employee Christmas party in favor of major donations to two charities.

The maker of high-end graphics workstations gave a used three-quarter-ton truck to the nearby Community Services Agency headquarters last Friday, among other contributions. The company that same day also donated a used mini-van to Sacred Heart Community Service of San Jose.

In addition, Silicon Graphics employees donated two utility carts to Community Services Agency plus some clothing.

"We're playing Santa Claus," said Yvette del Prado, vice president of external affairs for Silicon Graphics. "We know (these charities) are very organized and efficient, and they reach out to many people. We've been working with CSA for at least seven or eight years. And we've always believed in giving back."

This gush of giving comes at a difficult time for the company, which, up until this year had enjoyed tremendous success as one of the more prominent Silicon Valley companies. In its first quarter of 1997, which ended Sept. 30, the company reported a net loss of $56 million. Silicon Graphics profits have fallen from a peak of $224.9 million in 1995 to $78.6 million in its last fiscal year. The losses forced the company to lay off 850 workers last month and prompted the resignation of chief executive officer Ed McCracken.

del Prado said a "Winter Fest" celebration normally planned among the employees this time of year has been canceled.

"We were heavy of heart," she said. "When you go through these major changes, you suffer."

But del Prado indicated the setbacks have helped the employees and the company rethink their priorities about giving.

"Instead of spending money on ourselves, we're going to get joy by giving," she said. "The more you mature, the more your realize there are different ways of being joyful."

Tom Pamilla, executive director of Community Services Agency serving Mountain View, Los Altos and Los Altos Hills, said Silicon Graphics employees donated the truck after querying the charity about its wish list. "(The truck) was No. 2 on the list behind the million dollar check," Pamilla quipped.

Pamilla said the agency currently uses one van to transport everything from clothing and food donations to needy senior citizens.

"They're conscious of what the agency is doing in the community and they want to be good corporate neighbors," Pamilla said. "They care."

The truck, he said, will come in handy in collecting, for example clothing from the Operation: One Warm Coat drive undertaken by Coldwell Banker. "Hundreds of coats, some of them brand new, have been donated to the agency," Pamilla said. "Then we get the call - 'Can you come pick it up?' "

In addition to the donations, Silicon Graphics employees showed up in person at both charities last Friday, performing Christmas carols and handing out hot chocolate.

del Prado, a Los Altos resident and former Cupertino Union School District superintendent, said Silicon Graphics personnel still contributed nearly $1 million to this year's United Way campaign, despite their troubles. Approximately $750,000 of that came from Silicon Graphics employees here, she said.

"We're not going to change who we are because we've struggled," she said. "We're in it for the long haul."

Silicon Graphics currently has approximately 10,400 employees worldwide.