SGI's largest customers may be government-related. For instance, the National Aeronautics and Space Administration is using an SGI Altix supercluster supercomputer named Columbia -- so named to honor the space shuttle astronauts -- made up of 10,240 Itanium 2 processors.

The SGI Worldwide User Group is scheduled to meet in Las Vegas beginning June 5.

The bankruptcy filing is a key part of the strategy to make SGI healthy again, McKenna said.

"This is a necessary and responsible step that will strengthen the company and foster a sustained turnaround at SGI," he said. "We expect to proceed quickly and will emerge from these proceedings with a significantly improved balance sheet and, as a result, greater operating flexibility. I am confident in SGI's future. The new direction I have set is comprehensive, the product portfolio we will unveil is expansive, and our dedication to customer satisfaction is unwavering."

The bankruptcy filings were made Monday in the U.S. Bankruptcy Court for the Southern District of New York.