All in all SGI almost certainly will continue to bleed out of its main arteries for two more quarters; at least imo till Montecito based revenue starts making up for current IRIX/Itanium(Madison) System Rev declines.
You might be surprised how competitive the new 4700 series Altix is even with the Madison I2. It starts shipping later this month although sales cross-over with the Bx2 isn't expected until mid year. You also should keep an eye on its storage and visualization business, SGI seems to have a significant technical lead on everyone else for high end niche apps, some of them outside the traditional HPC field.