Cray reports second quarter financial results

Overall gross profit margin for the second quarter of 2015 was 27%, compared to 34% for the second quarter of 2014. Total non-GAAP gross profit margin for the second quarter of 2015 was 27%, compared to 35% for the second quarter of 2014.

Operating expenses for the second quarter of 2015 were $40.0 million, compared to $42.8 million for the second quarter of 2014. Non-GAAP operating expenses for the second quarter of 2015 were $37.3 million, compared to $39.9 million for the second quarter of 2014.

Cash, investments and restricted cash was $103 million as of June 30, 2015, compared to $148 million as of March 31, 2015. Working capital increased slightly at the end of the second quarter of 2015 to $355 million compared with $353 million at the end of the first quarter.

"We had a strong second quarter, highlighted by several key customer wins and our new installation at the King Abdullah University of Science and Technology in Saudi Arabia", stated Peter Ungaro, president and CEO of Cray. "We also expanded our storage and data management team by hiring a number of development and service engineers from Terascala, adding new skills and capabilities to this growing business. With recent wins at the Bureau of Meteorology in Australia and the Texas Advanced Computing Center, our momentum of new awards has continued and we're well positioned to deliver strong growth for the year."

Cray anticipates revenue for 2015 to be in the range of $715 million. Revenue for the third quarter is expected to be approximately $140 million. Non-GAAP gross margin for 2015 is expected to be in the 30-33% range. Total non-GAAP operating expenses for the year are anticipated to be in the range of $180 million. Based on this outlook, the company expects to improve our GAAP and non-GAAP operating profit margin significantly for 2015 as compared to 2014.

Cray's 2015 effective non-GAAP tax rate is expected to be in the range of 6-10%.

Actual results for any future period are subject to large fluctuations and a wide range of results remains possible given the nature of the business.

Recent highlights include the following:

• In July, Cray was selected by the Bureau of Meteorology in Melbourne, Australia to deliver a new Cray XC40 supercomputer and Sonexion 2000 storage solution. Including future options, the contract totals about $53 million, with installations expected to begin in 2016.
• In July, Cray has been selected by the Texas Advanced Computing Center (TACC) at the University of Texas to deliver a Cray XC40 supercomputer. The new system named "Lonestar5" will have a peak performance of more than one petaflops and will serve as the primary high performance computing resource in the UT Research Cyberinfrastructure initiative.
• In July, Cray hired the majority of employees of Boston-based storage company, Terascala. The new additions strengthen Cray's overall storage and data management expertise.
• In June, Cray established its European, Middle East and Africa (EMEA) headquarters at the company's new office in Bristol, United Kingdom. Cray continues to expand its presence in the supercomputing and Big Data markets across the region, and its new headquarters strengthens the company's commitment to the commercial, academic, and government customers in these countries.
• In May, the Supercomputing Education and Research Center (SERC) at the Indian Institute of Science in Bangalore, India put a new Cray XC40 into production. With more than 1.4 petaflops of compute performance, the Cray supercomputer nicknamed "SahasraT" at SERC is the first petaflop system in India.