What is going on with SGI?

We are hearing about SGI wins on HPCwire and other venues. These should be good, and reflective in the stock price.

sgi stock graph from yahoo

But they aren’t. SGI’s market cap is 90.6M as of this morning, with 1500+ employees. Trailing 12 month revenue is 415M. They have 85M of debt. About 33.2M in cash.
Something has got to give here.
As they stopped making their own stuff, COGS increased, as their suppliers made more margin off completed product. Which impacted profits. Suddenly SGI finds itself to be a large version of LNXI. Which is not a good thing.
Competing against Dell can be bad for your bottom line. Not to mention HP, IBM, and the hungry tier 1,2,3 vendors.
What differentiates SGI’s VXtech supplied units from other VXtech supplied units? Or SGI’s EMC supplied units from others EMC supplied units? Or SGI’s Intel supplied units from others Intel supplied units.
SGI doesn’t have much of a choice, they need to do innovation, fast and hard, and show value on the stack. This is hard when your stack and other’s stacks are the same for all intents and purposes, and, to quote a famous (within SGI on SGI.bad-attitude) posting “you can’t paint a box purple and charge 3x the price”.
The trend of the stock suggests being below 5 by the end of this quarter. Being close to zero within two quarters.