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Primeur weekly 2011-05-16

EuroFlash

Jülich makes a crutial step towards Exascale computer with the introduction of hybrid clusters using Tesla 20-series GPU's ...

Cray signs contract to upgrade and expand the Cray XE6 supercomputer at the University of Edinburgh ...

Cray reports first quarter 2011 financial results ...

Electromechanics also operates at the nanoscale ...

ICM selects IBM to fuel national science ...

USFlash

Carbon, carbon, everywhere; But not from the Big Bang ...

Cisco Networking Solutions increase security and mobility with Cloud services for branch offices ...

Xerox and Cisco to form alliance to deliver Cloud services; Combine network intelligence and print management ...

Cray and Sandia establish a Supercomputing Institute for Learning and Knowledge Systems ...

EMC Isilon delivers world's largest single file system for big data ...

EMC and Box deliver enterprise content management mobility through the Cloud ...

EMC enables service providers to accelerate customers' journey to Cloud computing ...

EMC delivers "Cloud to Ground" root-cause analysis for data centres ...

EMC delivers Hadoop 'big data' analytics to the enterprise ...

New EMC Ionix UIM software simplifies Cloud infrastructure management ...

EMC connects VNX to the Cloud with new Cloud Tiering Appliance ...

Graphene optical modulators could lead to ultrafast communications ...

HP puts data storage on a diet and guarantees capacity reduction ...

HP launches high-performance FlexNetwork solutions for video and mobile computing ...

HP readies enterprises for the future with FlexNetwork architecture ...

IBM delivers technology to help clients protect and retain "Big Data" ...

Primerica selects new IBM zEnterprise mainframe server for smarter infrastructure ...

Proton dripping tests a fundamental force in nature ...

Raritan's data centre energy management software gets a new dashboard with forecasting tools and gauges to track and visualize key energy metrics ...

Red Hat revolutionizes the private and hybrid Cloud market ...

Rice doubles supercomputing capacity ...

Student, 16, invents new drug cocktail to fight cystic fibrosis, wins Canadian biotech challenge ...

Cray reports first quarter 2011 financial results

9 May 2011 Seattle - Cray Inc. has issued financial results for the first quarter ended March 31, 2011. Revenue for the quarter was $39.9 million compared to $28.4 million in the prior year period. The company reported a net loss for the quarter of ($1.5 million) or ($0.04) per share compared to a net loss of ($11.6 million) or ($0.34) per share in the first quarter of 2010.

Total gross profit margin for the first quarter 2011 was 43% compared to 23% for the first quarter of 2010. For the first quarter 2011, product margin was 32% and service margin was 51%. First quarter 2011 service margin benefited as new, large systems went into production and also benefited from revenue on a custom engineering contract on which costs were recognized in a prior period.

Operating expenses for the first quarter 2011 were $18.1 million, flat with the prior year period. First quarter 2011 operating expenses included $1.1 million for restructuring costs associated with the company's workforce rebalancing announced in March 2011. The first quarter 2011 results also included non-cash items of $2.2 million for depreciation and amortization and $1.1 million related to stock compensation expense.

As of March 31, 2011, cash balances totaled $125.9 million compared to $61.3 million as of December 31, 2010.

"We had a solid first quarter highlighted by strong gross margin and cash of over $3 per share at quarter-end", stated Peter Ungaro, president and CEO of Cray. "We continue to make good progress on our internal development plans with two upgrades planned for the Cray XE6 supercomputer later this year. Due to lengthening sales cycles, mainly driven by federal budgeting delays in the U.S. and abroad, we have adjusted the low end of our revenue range downward for 2011 - at the same time we reduced our cost profile and improved our operating leverage. Our focus is on winning new opportunities needed to achieve our outlook while continuing to execute on our longer-term growth drivers."

A wide range of results remains possible for 2011 and the company's quarterly and annual results are highly dependent on completing a handful of large transactions already contracted as well as securing additional opportunities. One of these opportunities not yet contracted is anticipated to be more than $50 million in revenue for 2011. Assuming all necessary acceptances are achieved within the year, total revenue for 2011 is anticipated to be $300-$340 million. Quarterly revenue is expected to fluctuate for 2011 with second quarter revenue in the range of $65-$70 million and fourth quarter revenue representing more than 50% of the annual total. Custom Engineering revenue is expected to be approximately $40-$50 million for 2011.

For the year, total gross margins are expected to be in the mid-30% range and with a second Defense Advanced Research Projects Agency (DARPA) milestone anticipated for the fourth quarter, core operating expenses are expected to be about $100 million. Based on this outlook, we expect to be profitable for 2011.

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

Recent highlights include the following:

  • Today, Cray is announcing plans to upgrade and expand the Cray XE6 system located at the University of Edinburgh in Scotland as part of the High-End Computing Terascale Resource (HECToR) project. Cray will add 10 cabinets to the existing 20-cabinet Cray XE6 supercomputer and will upgrade all of the systems processors to the new AMD Opteron 6200 Series processor (code-named "Interlagos"). The expansion and upgrade is expected to be completed later this year and will provide the HECToR users with an 827-teraflops supercomputer for tackling complex scientific challenges.
  • In February, Cray had signed a contract to provide the Swiss National Supercomputing Centre (CSCS) in Manno, Switzerland with a next generation Cray XMT supercomputer. A key offering of Cray's Custom Engineering group, the Cray XMT system features a massive, multithreaded processing architecture designed for large data-driven problems. CSCS is the first customer to order the new system, and will use its unique capabilities to focus on scientific applications such as material sciences, medicine genomics, high-energy physics, climate research and astrophysics. The system is expected to be delivered and put into production in 2011.
  • In April, the Partnership for Advanced Computing in Europe (PRACE) announced that the Cray XE6 system being delivered in 2011 to the University of Stuttgart's High Performance Computing Center (HLRS) will officially be a PRACE resource. The Cray XE6 system at HLRS, nicknamed "Hermit", will be the first Cray supercomputer at more than a petaflops performance level outside of the United States and joins exclusive company as only the third "Tier-0" PRACE supercomputing resource in Europe.
  • In April, Cray announced that the new Intel Xeon processor E7 family is now available in the Cray CX1000 supercomputer, providing new levels of performance and advance reliability to customers with data-demanding workloads.
  • In March, Cray completed a development milestone related to its "DARPA" contract. The $12.0 million milestone represented an offset to gross research and development expense.
Source: Cray

Back to Table of contents

Primeur weekly 2011-05-16

EuroFlash

Jülich makes a crutial step towards Exascale computer with the introduction of hybrid clusters using Tesla 20-series GPU's ...

Cray signs contract to upgrade and expand the Cray XE6 supercomputer at the University of Edinburgh ...

Cray reports first quarter 2011 financial results ...

Electromechanics also operates at the nanoscale ...

ICM selects IBM to fuel national science ...

USFlash

Carbon, carbon, everywhere; But not from the Big Bang ...

Cisco Networking Solutions increase security and mobility with Cloud services for branch offices ...

Xerox and Cisco to form alliance to deliver Cloud services; Combine network intelligence and print management ...

Cray and Sandia establish a Supercomputing Institute for Learning and Knowledge Systems ...

EMC Isilon delivers world's largest single file system for big data ...

EMC and Box deliver enterprise content management mobility through the Cloud ...

EMC enables service providers to accelerate customers' journey to Cloud computing ...

EMC delivers "Cloud to Ground" root-cause analysis for data centres ...

EMC delivers Hadoop 'big data' analytics to the enterprise ...

New EMC Ionix UIM software simplifies Cloud infrastructure management ...

EMC connects VNX to the Cloud with new Cloud Tiering Appliance ...

Graphene optical modulators could lead to ultrafast communications ...

HP puts data storage on a diet and guarantees capacity reduction ...

HP launches high-performance FlexNetwork solutions for video and mobile computing ...

HP readies enterprises for the future with FlexNetwork architecture ...

IBM delivers technology to help clients protect and retain "Big Data" ...

Primerica selects new IBM zEnterprise mainframe server for smarter infrastructure ...

Proton dripping tests a fundamental force in nature ...

Raritan's data centre energy management software gets a new dashboard with forecasting tools and gauges to track and visualize key energy metrics ...

Red Hat revolutionizes the private and hybrid Cloud market ...

Rice doubles supercomputing capacity ...

Student, 16, invents new drug cocktail to fight cystic fibrosis, wins Canadian biotech challenge ...