Silicon Graphics is reported to be providing both software and hardware for the network.

But he added that the deal would hurt Silicon Graphics' stock in the short term.

Silicon Graphics has done more to take advantage of the rapidly growing multimedia industry than any competitor, he said.

Silicon Graphics also reported earnings for the fourth quarter that were stronger than expected.

Silicon Graphics had a net loss of $22 million in its first fiscal quarter last year.

In addition, Silicon Graphics' technology is expected to be part of the new standard.

Silicon Graphics, for one, has kept people wondering for more than a year.

Silicon Graphics also said it would soon disclose a strategy to renew growth.

Silicon Graphics has met estimates only once in the last 10 quarters.

Silicon Graphics is not the first company to achieve this technical capability.