Silicon Graphics (NASDAQ:SGI) is gapping up

Shares of Silicon Graphics International Corp (NASDAQ:SGI) are tearing it up today, up $1.01 or 12%. For those of you who don't remember, SGI was formerly a little company called Rackable Systems Inc.

After the merging of RACK with SGI, it seems that investors are liking the new company, especially after yesterday's earnings report:

SGI posted non-GAAP revenue for the quarter of $151.5 million, with non-GAAP EPS of 18 cents a share. (GAAP revenues were $94.1 million.) The company sees non-GAAP revenue for its June 2010 fiscal year of $500 million, with non-GAAP gross margin in the mid-to-high 20s, which compares to 28.7% in the second quarter, and 28.4% in the first quarter.

The company finished the quarter with $142.8 million in cash, a fair chunk of its $252 million market cap.

Masters, keep your eye on SGI, their fundamentals are looking good and if they continue to post earnings like they did yesterday, the stock should continue to climb.