The company is evaluating the potential release of all or a portion of the reserve held against its remaining U.S. Federal deferred tax assets, which if made would likely result in a significant tax benefit for 2014 for GAAP accounting purposes.
"We had a solid year and expect record revenue again in 2014 as we continue to deliver year over year growth", stated Peter Ungaro, president and CEO of Cray. "While we did not complete all of the system acceptances necessary to achieve our 2014 guidance, we now expect a strong 2015 to be even stronger, as that revenue will carry over and add to 2015. With an incredible year of new contracts signed in 2014, we are building momentum in the market today across all of our product lines and we anticipate significant growth in revenue and profitability in 2015. As we look further out, we are in excellent shape to continue to capitalize on the ongoing convergence of supercomputing and Big Data."
For 2015, while a wide range of results remains possible, based on the current expectations for 2014, Cray anticipates revenue for the year to be in the range of $715 million. Revenue is expected to ramp quarterly during 2015, with about $80 million in the first quarter and roughly 40-45% of the total year in the fourth quarter. Non-GAAP gross margin for 2015 is expected to be about 35%. Total non-GAAP operating expenses for the year are anticipated to be about $195 million. Based on this outlook, Cray expects to improve its GAAP and non-GAAP operating profit margin significantly for 2015.
The company's 2015 effective non-GAAP tax rate is expected to be about 10%.
Actual results for any future period are subject to large fluctuations given the nature of Cray's business.