Back to Table of contents

Primeur weekly 2013-08-05

Special

There is room for two major supercomputer conferences each year ...

Historic Heidelberg setting for new Big Data Conference ...

Exascale supercomputing

Largest neuronal network simulation to date achieved using Japanese supercomputer ...

Designing a new operating system for exascale architectures ...

The Cloud

Over a hundred vulnerabilities were found in browsers in the course of The University of Oulu's effective data security testing programme ...

IBM unveils new PowerLinux system for analytics and Cloud computing ...

ESDS selects IBM PureSystems over HP and Dell for Cloud and Big Data offerings ...

EuroFlash

Walking on Water: projectiondesign powers interactive portable 360-degree Igloo experience at La Biennale di Venezia 2013 ...

SUSE predicts supercomputer capabilities to become part of mainstream IT for enterprise customers ...

GEANT's terabit upgrade gives European science the data network of the future ...

ADVA FSP 150 delivers sub-microsecond timing for high-frequency trading ...

Scientists realize quantum bit with a bent nanotube ...

USFlash

Stanford engineers receive award to improve supercomputing and solar efficiency ...

Fujitsu PRIMERGY computational power at Australian National University takes high capability Australian research to the world stage ...

NOAA's National Weather Service more than doubles computing capacity ...

Cray Inc. reports second quarter 2013 results ...

UCSC acquires powerful new astrophysics supercomputer system ...

20 years of TOP500 data show Linux's role in supercomputing breakthroughs ...

Secretary Moniz dedicates new supercomputer at the National Energy Technology Laboratory ...

Online tools accelerating earthquake-engineering progress ...

CSIR to launch new supercomputer ...

NIH commits $24 million annually for Big Data Centres of Excellence ...

NASA relies on RTI Connext DDS for Human Exploration Telerobotics Project ...

Omni Circuit Boards produces working aluminum trace circuit board for quantum computing applications ...

Computer scientists develop mathematical jigsaw puzzles to encrypt software ...

Cray Inc. reports second quarter 2013 results

31 Jul 2013 Seattle - Cray Inc. has issued financial results for the second quarter ended June 30, 2013. Revenue for the quarter was $84.5 million compared to $84.2 million in the prior year period. Cray reported a net loss for the quarter of $0.2 million or $0.00 per share compared to net income of $147.4 million or $3.91 diluted income per share in the second quarter of 2012.

Net loss results for the second quarter of 2013 were positively impacted by a $9.3 million tax benefit which resulted from the partial release of the valuation allowance held against Cray's deferred tax assets. The second quarter of 2012 operating results included a $139.1 million pre-tax gain, which resulted from the sale of the Company's interconnect hardware development programme to Intel Corporation.

All figures are based on U.S. GAAP unless otherwise noted. A reconciliation of GAAP measures to non-GAAP measures is included with the financial tables. Non-GAAP net loss, which adjusts for selected unusual and non-cash items, was $7.0 million or $0.19 per share for the second quarter of 2013, compared to non-GAAP net income of $12.8 million or $0.34 per share for the second quarter of 2012.

Revenue for the six-month period ended June 30, 2013 was $164.0 million compared with $196.5 million in the prior year period. Non-GAAP net loss for the first six months of 2013 was $15.4 million, compared to non-GAAP net income of $21.8 million for the prior year period.

Total gross profit margin for the second quarter of 2013 was 32% compared to 41% for the second quarter of 2012. Non-GAAP total gross profit margin for the second quarter of 2013 was 33% compared to 41% for the second quarter of 2012. For the second quarter of 2013, product margin was 24% and service margin was 54%. Product margin for the second quarter of 2013 was negatively impacted in part by higher than anticipated costs on a single, large installation. Without the additional costs associated with this installation, product margin for the quarter would have been 8 percentage points higher, at 32%, and total gross profit margin would have been 6 percentage points higher, at 38%.

Operating expenses for the second quarter of 2013 were $36.6 million, compared to $22.1 million in the prior year period. Second quarter of 2012 operating expenses benefited from $15 million in R&D co-funding credits related to the company's DARPA contract, which was completed in 2012. Non-GAAP operating expenses for the second quarter of 2013 were $35.0 million compared to $20.9 million in the prior year period.

The second quarter of 2013 operating results included $3.5 million for depreciation. Non-cash, pre-tax items excluded for non-GAAP purposes for the second quarter of 2013 were $0.6 million for amortization of acquired and other intangibles, $0.1 million for purchase accounting adjustments, and $1.6 million for stock compensation expense.

As of June 30, 2013, cash and investments totalled $253 million compared to $251 million as of March 31, 2013. Working capital increased during the second quarter to $285 million compared to $283 million at the end of the first quarter.

"We had a good second quarter, with continued progress across each of our different product offerings, and we ended the first half of the year ahead of our revenue track", stated Peter Ungaro, president and CEO of Cray. "Our supercomputing business continues to be strong, highlighted by several exciting new wins around the world in the last few months, including flagship wins at both the European Centre for Medium-Range Weather Forecasts and the ARCHER project for the UK national supercomputing facility. In Big Data, we recently launched our Cray Cluster Connect offering, a complete, end-to-end high performance storage solution for any x86 Linux cluster. On the analytics front, we had a number of exciting wins in our YarcData group, signing up new customers across several of our key market segments for our Urika real-time data discovery platform. We're in a strong competitive position right now and I'm really excited about the momentum we've built throughout our business. With an increase to our outlook today, we're anticipating strong revenue growth of more than 20% for the year and solid profitability."

While a wide range of results remains possible for 2013, Cray expects revenue to be approximately $520 million for the year. Revenue in the third quarter is expected to be about $90 million. For 2013, total gross profit margin is anticipated to be in the mid-30% range. Total operating expenses for 2013 are expected to be in the range of $160 million. Non-GAAP adjustments to pre-tax earnings are anticipated to be over $10 million in 2013, driven by stock-based compensation and acquisition related expenses. Based on this outlook, Cray expects to be profitable on a GAAP and non-GAAP basis for 2013.

Following a partial release of Cray's deferred tax asset valuation allowance in the second quarter of 2013, the company expects to record an income tax benefit for the year. Based on this outlook, due to Cray's substantial net operating loss carryforwards, the annual income tax provision is expected to be largely non-cash and the effective non-GAAP tax rate is expected to be 7-10%.

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

Recent highlights include the following:

  • In July, Cray won a new $30 million contract to deliver a Cray XC30 supercomputer and a Cray Sonexion storage system for the UK national supercomputing facility at the University of Edinburgh in Scotland, as part of the ARCHER project.
  • In June, Cray was awarded a contract valued at more than $65 million by the European Centre for Medium-Range Weather Forecasts (ECMWF), one of the world's premier numerical weather prediction and research centres, to deliver a Cray XC30 supercomputer and Cray Sonexion storage for their next operational facility.
  • In June, the company launched Cray Cluster Connect, a complete Lustre storage solution for x86 clusters across the HPC and Big Data computing markets. Cray Cluster Connect provides customers with an end-to-end Lustre solution consisting of hardware, networking, software, architecture and support.
  • In May, Cray introduced the Cray XC30-AC supercomputer, the company's new addition to its series of Cray XC30 systems. The system features all of the advanced high performance technologies offered in the XC30 system with prices starting at $500,000.
  • In the second quarter, the Cray CS300 cluster supercomputers were available with Intel Xeon Phi coprocessors which are optimized to deliver the highest levels of parallel performance to power breakthrough innovations across an array of scientific fields. Also in the second quarter, Cray launched a new turnkey Hadoop offering built on an optimized configuration of the Cray CS300 system.
  • In the second quarter, Cray's YarcData division was awarded multiple new contracts for its Urika system, a Big Data appliance for real-time data discovery.
  • In the second quarter, Cray's YarcData division was named a 2013 Gartner "Cool Vendor" in Content and Social Analytics. The Gartner report found that gaining insights across multi-structured data is one of the biggest opportunities to derive value from analytics.
Source: Cray

Back to Table of contents

Primeur weekly 2013-08-05

Special

There is room for two major supercomputer conferences each year ...

Historic Heidelberg setting for new Big Data Conference ...

Exascale supercomputing

Largest neuronal network simulation to date achieved using Japanese supercomputer ...

Designing a new operating system for exascale architectures ...

The Cloud

Over a hundred vulnerabilities were found in browsers in the course of The University of Oulu's effective data security testing programme ...

IBM unveils new PowerLinux system for analytics and Cloud computing ...

ESDS selects IBM PureSystems over HP and Dell for Cloud and Big Data offerings ...

EuroFlash

Walking on Water: projectiondesign powers interactive portable 360-degree Igloo experience at La Biennale di Venezia 2013 ...

SUSE predicts supercomputer capabilities to become part of mainstream IT for enterprise customers ...

GEANT's terabit upgrade gives European science the data network of the future ...

ADVA FSP 150 delivers sub-microsecond timing for high-frequency trading ...

Scientists realize quantum bit with a bent nanotube ...

USFlash

Stanford engineers receive award to improve supercomputing and solar efficiency ...

Fujitsu PRIMERGY computational power at Australian National University takes high capability Australian research to the world stage ...

NOAA's National Weather Service more than doubles computing capacity ...

Cray Inc. reports second quarter 2013 results ...

UCSC acquires powerful new astrophysics supercomputer system ...

20 years of TOP500 data show Linux's role in supercomputing breakthroughs ...

Secretary Moniz dedicates new supercomputer at the National Energy Technology Laboratory ...

Online tools accelerating earthquake-engineering progress ...

CSIR to launch new supercomputer ...

NIH commits $24 million annually for Big Data Centres of Excellence ...

NASA relies on RTI Connext DDS for Human Exploration Telerobotics Project ...

Omni Circuit Boards produces working aluminum trace circuit board for quantum computing applications ...

Computer scientists develop mathematical jigsaw puzzles to encrypt software ...