While a wide range of results remains possible for 2018 and based on the company's preliminary 2017 results, Cray expects revenue to grow by 10-15% for 2018. Revenue is expected to be about $50 million for the first quarter of 2018.
"With a strong effort across the company and in partnership with our customers, we completed all our large acceptances during the fourth quarter", stated Peter Ungaro, president and CEO of Cray. "A couple of smaller acceptances that we did not finish are now expected to be completed early in 2018. While 2017 was challenging, we're beginning to see early signs of a rebound in our core market and I'm proud of the progress we made during the year to position the company for long-term growth."
Based on currently available information, Cray estimates that the impact of the Tax Cuts and Jobs Act (Tax Legislation) passed in December 2017 will result in a reduction to the company's GAAP earnings for the fourth quarter and year ended December 31, 2017 in the range of $30-35 million. The large majority of this charge is due to the remeasurement of the company's U.S. deferred tax assets at lower enacted corporate tax rates. The charge may differ from this estimate, possibly materially, due to, among other things, changes in interpretations and assumptions the company has made, and guidance that may be issued. This charge has no impact on the company's previously provided non-GAAP guidance. Going forward, the company does not expect an increase in its non-GAAP tax rates as a result of the Tax Legislation.