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Primeur weekly 2018-02-19

Exascale supercomputing

Ready for Exascale: researchers find algorithm for large-scale brain simulations on next-generation supercomputers ...

Quantum computing

Researchers demonstrate promising method for improving quantum information processing ...

Fingerprints of quantum entanglement ...

Focus on Europe

Karel Luyben appointed Dutch National Coordinator for Open Science ...

Middleware

An OLCF-developed visualization tool offers customization and faster rendering ...

Hardware

Dell EMC next generation converged infrastructure makes data centre modernization even simpler ...

Cray reports 2017 full year and fourth quarter financial results ...

Michael Levine and Ralph Roskies Day proclaimed in Pittsburgh and Allegheny County ...

MACH-2 put into operation at 77 trillion operations/second ...

Applications

CENIC recognizes technology projects to combat California wildfires ...

3D-e-Chem team develops building blocks and recipes for computer-aided drug discovery ...

Researchers find blood pressure drug holds promise for preventing onset of Type 1 diabetes ...

NCSA allocates over $2.4 million in new Blue Waters supercomputer awards to Illinois researchers ...

NCSA researchers create one of the most reliable tools for long-term crop prediction in the U.S. Corn Belt ...

Embracing complexity in biological systems ...

Particle interactions calculated on Titan support the search for new physics discoveries ...

GM revs up diesel combustion modeling on Titan supercomputer ...

NEC and Tohoku University succeed in AI-based new material development ...

Physics data processing at NERSC dramatically cuts reconstruction time ...

Advanced computing and water management at the AAAS Meeting 2018 ...

Neural networks everywhere ...

Supermassive black hole model predicts characteristic light signals at cusp of collision ...

New turbulent transport modelling shows multiscale fluctuations in heated plasma ...

TACC and DOD engage in four-year transformational design project ...

The Cloud

Atos signs key contract with the European Space Agency to enable new services with satellite data ...

Oracle buys Zenedge ...

NEC contributes to ecosystem for enhancing virtualized network orchestration ...

Cray reports 2017 full year and fourth quarter financial results

15 Feb 2018 Seattle - Cray Inc. has issued financial results for the year and fourth quarter ended December 31, 2017. All figures are based on U.S. GAAP unless otherwise noted. For 2017, Cray reported total revenue of $392.5 million, which compares with $629.8 million in 2016. Net loss for 2017 was $133.8 million, or $3.33 per diluted share, compared to net income of $10.6 million, or $0.26 per diluted share in 2016. Non-GAAP net loss, which adjusts for selected unusual and non-cash items, was $40.5 million, or $1.01 per diluted share for 2017, compared to non-GAAP net income of $19.9 million, or $0.49 per diluted share in 2016.

Revenue for the fourth quarter of 2017 was $166.6 million, compared to $346.6 million in the fourth quarter of 2016. Net loss for the fourth quarter of 2017 was $97.5 million, or $2.42 per diluted share, compared to net income of $51.8 million, or $1.27 per diluted share in the fourth quarter of 2016. Non-GAAP net income was $9.2 million, or $0.22 per diluted share for the fourth quarter of 2017, compared to non-GAAP net income of $56.3 million, or $1.38 per diluted share for the same period in 2016.

The company's GAAP Net Loss for the fourth quarter and year ended December 31, 2017 was significantly impacted by both the enactment of the Tax Cuts and Jobs Act of 2017 and by its decision to record a valuation allowance against all of its U.S. deferred tax assets. The combined GAAP impact totaled $103 million. These items have been excluded for non-GAAP purposes.

For 2017, overall gross profit margin on a GAAP and non-GAAP basis was 33% and 34%, respectively, compared to 35% on a GAAP and non-GAAP basis for 2016.

Operating expenses for 2017 were $196.4 million, compared to $211.1 million in 2016. Non-GAAP operating expenses for 2017 were $176.5 million, compared to $199.7 million in 2016. GAAP operating expenses in 2017 included $8.6 million in restructuring charges associated with our recent workforce reduction.

As of December 31, 2017, cash, investments and restricted cash totaled $147 million. Working capital at the end of the fourth quarter was $354 million, compared to $373 million at December 31, 2016.

"Despite difficult conditions in our core market we finished 2017 strong, highlighted by several large acceptances at multiple sites around the world, including completing the installation of what is now the largest supercomputing complex in India at the Ministry of Earth Sciences", stated Peter Ungaro, president and CEO of Cray. "As we shift to 2018, we're seeing signs of a rebound at the high-end of supercomputing as well as considerable growth opportunities in the coming years. Supercomputing continues to expand in importance to both government and commercial customers, driving growth and competitiveness across many different disciplines and industries. As the leader at the high-end of the market, we're poised to play a key role in this growth and I'm excited about where we're headed."

For 2018, while a wide range of results remains possible, Cray continues to expect revenue to grow in the range of 10-15% over 2017. Revenue is expected to be about $50 million for the first quarter of 2018. For 2018, GAAP and non-GAAP gross margins are expected to be in the low- to mid-30% range. Non-GAAP operating expenses for 2018 are expected to be in the range of $190 million. For 2018, non-GAAP adjustments are expected to total about $14 million, driven primarily by share-based compensation. For the year, GAAP operating expenses are anticipated to be about $12 million higher than non-GAAP operating expenses, and GAAP gross profit is expected to be about $2 million lower than non-GAAP gross profit.

Based on this outlook, Cray's effective GAAP and non-GAAP tax rates for 2018 are both expected to be in the low-single digit range, on a percentage basis.

Actual results for any future periods are subject to large fluctuations given the nature of Cray's business.

Recent highlights include the following:

  • In January, Cray has deployed two Cray XC40 supercomputers and two Cray ClusterStor storage systems as part of a $67 million contract with the Ministry of Earth Sciences in India. The combined systems are the largest supercomputing resource in India and were accepted in late 2017.
  • In December, Cray has joined the Big Data Center at the Department of Energy's National Energy Research Scientific Computing Center (NERSC). The collaboration is representative of Cray's commitment to leverage its supercomputing expertise, technologies, and best practices to advance the adoption of Artificial Intelligence (AI), deep learning, and data-intensive computing.
  • In November, Samsung Electronics Co. Ltd. has purchased a Cray CS-Storm accelerated cluster supercomputer. The Samsung Strategy & Innovation Center procured the system for use in its research into AI and deep learning workloads, including systems for connected cars and autonomous technologies.
  • In November, Cray announced new high performance computing storage solutions including Cray View for ClusterStor, providing customers with dramatically improved job productivity; Cray ClusterStor L300N, a flash-based acceleration solution; and Cray DataWarp for the Cray XC50 supercomputer, exponentially reducing data access time.
  • In November, Cray announced the company is creating an Arm-based supercomputer with the addition of Cavium ThunderX2 processors to the Cray XC50 supercomputer. Cray customers will have a complete Arm-based supercomputer that features a full software environment, including the Cray Linux Environment, the Cray Programming Environment, and Arm-optimized compilers, libraries, and tools for running today's supercomputing workloads.
  • In November, Cray announced a comprehensive set of AI products and programmes that will empower customers to learn, start, and scale their deep learning initiatives. These include the new Cray Accel AI lab, new Cray Accel AI offerings, a new Cray Urika-XC analytics software suite, and an AI collaboration agreement with Intel.
  • In December, Catriona Fallon was appointed to Cray's board of directors. Catriona Fallon is currently the Senior Vice President, Networks Segment at Itron Inc. and was Chief Financial Officer before Itron's acquisition of Silver Springs Networks in January 2018.
Source: Cray

Back to Table of contents

Primeur weekly 2018-02-19

Exascale supercomputing

Ready for Exascale: researchers find algorithm for large-scale brain simulations on next-generation supercomputers ...

Quantum computing

Researchers demonstrate promising method for improving quantum information processing ...

Fingerprints of quantum entanglement ...

Focus on Europe

Karel Luyben appointed Dutch National Coordinator for Open Science ...

Middleware

An OLCF-developed visualization tool offers customization and faster rendering ...

Hardware

Dell EMC next generation converged infrastructure makes data centre modernization even simpler ...

Cray reports 2017 full year and fourth quarter financial results ...

Michael Levine and Ralph Roskies Day proclaimed in Pittsburgh and Allegheny County ...

MACH-2 put into operation at 77 trillion operations/second ...

Applications

CENIC recognizes technology projects to combat California wildfires ...

3D-e-Chem team develops building blocks and recipes for computer-aided drug discovery ...

Researchers find blood pressure drug holds promise for preventing onset of Type 1 diabetes ...

NCSA allocates over $2.4 million in new Blue Waters supercomputer awards to Illinois researchers ...

NCSA researchers create one of the most reliable tools for long-term crop prediction in the U.S. Corn Belt ...

Embracing complexity in biological systems ...

Particle interactions calculated on Titan support the search for new physics discoveries ...

GM revs up diesel combustion modeling on Titan supercomputer ...

NEC and Tohoku University succeed in AI-based new material development ...

Physics data processing at NERSC dramatically cuts reconstruction time ...

Advanced computing and water management at the AAAS Meeting 2018 ...

Neural networks everywhere ...

Supermassive black hole model predicts characteristic light signals at cusp of collision ...

New turbulent transport modelling shows multiscale fluctuations in heated plasma ...

TACC and DOD engage in four-year transformational design project ...

The Cloud

Atos signs key contract with the European Space Agency to enable new services with satellite data ...

Oracle buys Zenedge ...

NEC contributes to ecosystem for enhancing virtualized network orchestration ...