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Primeur weekly 2012-03-05

The Cloud

Australian National University selects SGI to help harness explosion in data ...

Big science teams up with big business to kick‐start European Cloud computing ...

AMD to acquire SeaMicro: accelerates disruptive server strategy ...

HP launches Enterprise Security Cloud Connections partner programme ...

Dell advances public Cloud security with Trend Micro SecureCloud solutions ...

EuroFlash

Stories from the Grid launched at International Symposium on Grids and Clouds ...

IBM selected to build new supercomputer of the Max Planck Society ...

A supercomputer for research: University of Oldenburg to upgrade technical infrastructure ...

Workshop Call for Abstracts: Collaborative research using eScience infrastructure and high speed networks ...

USFlash

Cray's YarcData Division launches new Big Data graph appliance ...

Cray reports 2011 full year and fourth quarter financial results ...

National Institute of Genetics adopts SGI HPC solution for new supercomputer system ...

NASA scales SGI Pleiades InfiniBand Cluster to 25,000 Intel Xeon processor cores ...

SGI announces new President and CEO Jorge Luis Titinger ...

IBM Research advances device performance for quantum computing ...

ORNL completes first phase of Titan supercomputer transition ...

Researchers harness Kraken supercomputer to model explosions via transport ...

Climate scientists compute in concert ...

High-Performance Computing customers gain greater capabilities to address Big Data requirements through NetApp's collaboration with OpenSFS and EOFS communities ...

New supercomputer to accelerate Taiwan's Render Farm ...

On the path to 1 terabit-per-second networks ...

XSEDE's Extended Collaborative Support programme shares insights via symposium series ...

IBM captures leadership position in worldwide server market in fourth quarter of 2011 ...

Illinois supercomputers' expertise to help determine winner of genomics prize ...

SDSC and UC Santa Cruz to host summer school on astroinformatics ...

Cray reports 2011 full year and fourth quarter financial results

27 Feb 2012 Seattle - Cray Inc. has issued financial results for the year and fourth quarter ended December 31, 2011. For 2011, Cray reported revenue of $236.0 million and net income of $14.3 million, or $0.40 per share. Cray reported an operating profit for the year of $1.2 million. Net income results benefited from a partial release of $14.7 million of the valuation allowance held against Cray's deferred tax assets. This release was determined after considering both past financial results and future expectations.

Revenue for the fourth quarter of 2011 was $91.6 million compared to $219.4 million in the prior year period. The company reported net income for the fourth quarter of $31.0 million or $0.85 per share compared to $52.1 million or $1.46 per share in the fourth quarter of 2010.

Overall gross profit margin for 2011 was 40 percent compared to 34 percent in 2010. Product margin for 2011 was 35 percent, consistent with 2010 results; service margin for 2011 was 49 percent compared to 32 percent for 2010. For the fourth quarter of 2011, overall gross profit margin was 38 percent compared to 37 percent in the fourth quarter of 2010.

Operating expenses for 2011 were $93.2 million compared to $92.5 million in 2010. Included in the 2011 results was $1.8 million for restructuring, $8.6 million for depreciation and amortization and $3.6 million related to stock compensation.

Operating expenses for the fourth quarter of 2011 were $17.9 million compared to $27.4 million in the prior year period. Fourth quarter 2011 operating expenses benefited from a $12 million R&D co-funding credit related to the company's DARPA contract. Included in the fourth quarter 2011 results were non-cash items of $2.2 million for depreciation and amortization and $0.9 million related to stock compensation.

As of December 31, 2011, cash balances totaled $54.2 million and accounts receivable totaled $72.4 million.

"Led by strong margins, we were able to deliver operating profits in 2011 despite delays related to a key component that caused a large acceptance to slip out beyond year-end, but which we have since completed", stated Peter Ungaro, president and CEO of Cray. "We continue to see strength in our high-end supercomputer business with a number of big wins over the past few months, both domestically and abroad. We are making good progress on our three growth initiatives with new offerings in each planned for 2012. These initiatives leverage our core strengths in supercomputing while dramatically expanding our addressable market and growth potential. I expect 2012 to be an outstanding year for the company, breaking the $400 million revenue threshold and refreshing our entire product line top to bottom."

While a wide range of results remains possible for 2012, the company expects 2012 revenue to be in the range of $400-$420 million. Revenue for the first quarter of 2012 is expected to be about $100 million with the balance of the revenue for the year heavily weighted to the fourth quarter. Overall gross margins for 2012 are anticipated to be in the 35 percent range. Total operating expenses for the year are expected to increase to about $120 million, driven primarily by higher investments in our growth initiatives and incentive based compensation. Based on this outlook, Cray expects to be solidly profitable for 2012.

As a result of the partial release of the deferred tax valuation allowance in the fourth quarter of 2011, while volatile and dependent on a number of variables, the company currently projects its 2012 effective income tax rate to be about 40 percent. Due to the company's substantial net operating loss carryforwards the quarterly and annual income tax provision is expected to be largely non-cash.

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

Recent highlights incude:

  • In February 2012, Cray created YarcData, a new division focused exclusively on delivering solutions to the "Big Data" market and hired Arvind Parthasarathi as General Manager.
  • In February 2012, Cray announced the expansion of the Cray XE6m and Cray XK6m midrange supercomputer line, with systems now starting at $200,000.
  • In February 2012, Cray formed a new wholly-owned subsidiary in China aimed at establishing Cray's presence in China's fast growing High Performance Computing market.
  • In November 2011, Cray entered the integrated storage market with the launch of the Cray Sonexion 1300 storage system, a high-performance, cost-effective solution scaling from approximately 50 terabytes to more than 50 petabytes.
  • In November 2011, Cray was awarded a $188 million multi-year contract to provide the supercomputer for the National Science Foundation's Blue Waters project at the National Center for Supercomputing Applications (NCSA).
  • In November 2011, Cray was selected to provide a new supercomputer to the Academic Center for Computing and Media Studies at Kyoto University in Kyoto, Japan. The contract for this system has subsequently been finalized.
- In November 2011, in a broad partnership, Cray announced a new parallel-programming standard, known as OpenACC, designed to enable the millions of scientific and technical programmers to easily take advantage of hybrid CPU/GPU computing systems, such as the Cray XK6 supercomputer.
Source: Cray

Back to Table of contents

Primeur weekly 2012-03-05

The Cloud

Australian National University selects SGI to help harness explosion in data ...

Big science teams up with big business to kick‐start European Cloud computing ...

AMD to acquire SeaMicro: accelerates disruptive server strategy ...

HP launches Enterprise Security Cloud Connections partner programme ...

Dell advances public Cloud security with Trend Micro SecureCloud solutions ...

EuroFlash

Stories from the Grid launched at International Symposium on Grids and Clouds ...

IBM selected to build new supercomputer of the Max Planck Society ...

A supercomputer for research: University of Oldenburg to upgrade technical infrastructure ...

Workshop Call for Abstracts: Collaborative research using eScience infrastructure and high speed networks ...

USFlash

Cray's YarcData Division launches new Big Data graph appliance ...

Cray reports 2011 full year and fourth quarter financial results ...

National Institute of Genetics adopts SGI HPC solution for new supercomputer system ...

NASA scales SGI Pleiades InfiniBand Cluster to 25,000 Intel Xeon processor cores ...

SGI announces new President and CEO Jorge Luis Titinger ...

IBM Research advances device performance for quantum computing ...

ORNL completes first phase of Titan supercomputer transition ...

Researchers harness Kraken supercomputer to model explosions via transport ...

Climate scientists compute in concert ...

High-Performance Computing customers gain greater capabilities to address Big Data requirements through NetApp's collaboration with OpenSFS and EOFS communities ...

New supercomputer to accelerate Taiwan's Render Farm ...

On the path to 1 terabit-per-second networks ...

XSEDE's Extended Collaborative Support programme shares insights via symposium series ...

IBM captures leadership position in worldwide server market in fourth quarter of 2011 ...

Illinois supercomputers' expertise to help determine winner of genomics prize ...

SDSC and UC Santa Cruz to host summer school on astroinformatics ...