Google Moves to New Headquarters
Posted on: Monday, 14 July 2003, 06:00 CDT
Jul. 12--Fast-growing Internet search firm Google is moving its Mountain View headquarters about a half mile away to a four-building complex being vacated by struggling Silicon Graphics.
The moves are part of a subleasing deal between the two companies.
Google spokesman David Krane said the company now occupies four much smaller buildings, scattered around its so-called "Googleplex" at 2400 Bayshore Parkway. Moving to Silicon Graphics' 500,000-square-foot Amphitheatre Technology Center at 1600 Amphitheatre Parkway, also in Mountain View, will enable the firm's 800 employees to work more closely together, Krane said.
Founded in 1998 by two Stanford University graduate students, Google has become Silicon Valley's hottest private company. The company says it handles 200 million online searches a day and about three-fourths of all search-engine-generated traffic to Web sites.
Although Krane said Google would gradually phase out of its current location and into the new headquarters complex, he declined to be more specific about the timing.
Silicon Graphics spokeswoman Lisa Pistacchio said Silicon Graphics will begin moving from at least one building this month and that the transition is expected to be completed by August 2004. She said terms of the sublease are confidential.
Unlike Google, Silicon Graphics has been struggling. The company, which makes graphics supercomputers, announced in May that it was laying off 400 employees -- or 10 percent of its workforce. By subleasing to Google and shifting its headquarters to its newer but smaller three-building Crittenden Technology Center campus about a block away, the company expects to save up to $17 million a year, beginning next year.
Once the move is complete, Silicon Graphics expects to have reduced the total amount of building space it occupies locally from 717,000 square feet to 425,000 square feet, Pistacchio said.
Silicon Graphics has been leasing the Amphitheatre complex since selling it in December 2000 to an affiliate of the Goldman Sachs Group.
On Thursday, Silicon Graphics narrowed its fourth-quarter revenue estimate to $238 million to $242 million for the fiscal fourth quarter ended June 27. In April, the company had forecast fourth-quarter revenue of $225 million to $245 million.
The Mountain View company posted revenue of $284.5 million in the same period a year earlier.
Silicon Graphics also projected a fourth-quarter operating loss of $38 million to $42 million, including restructuring and other charges. Without these charges, the operating loss is expected to be about $28 million to $32 million, within the range of the company's expectations, Silicon Graphics said.
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(c) 2003, San Jose Mercury News, Calif. Distributed by Knight Ridder/Tribune Business News.
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