Overall gross profit margin on a GAAP and non-GAAP basis for the third quarter of 2016 was 30% and 31%, respectively. For the third quarter of 2015, GAAP and non-GAAP gross profit margin was 34% and 35%, respectively.
Operating expenses for the third quarter of 2016 were $52.1 million, compared to $47.9 million for the third quarter of 2015. Non-GAAP operating expenses for the third quarter of 2016 were $49.3 million, compared to $45.1 million for the third quarter of 2015.
As of September 30, 2016, cash, investments and restricted cash totaled $147 million. Working capital decreased in the third quarter of 2016 to $364 million compared to $381 million at the end of the second quarter.
"Our performance in the third quarter was highlighted by a number of new installations of supercomputers and storage systems worldwide", stated Peter Ungaro, president and CEO of Cray. "While market conditions remain challenging, we are beginning to see early signs of stabilization in certain areas, including in the energy market where we recently installed an additional XC system at PGS, and in the weather and climate market with a major win in the United States. Overall, while our visibility remains limited, our competitive position is strong and we're focused on delivering on our outlook for the rest of the year."
For 2016, a wide range of results remains possible. Assuming the company is able to successfully complete the acceptances of five large systems associated with two new processors that total roughly $185 million, the company expects revenue to be in the range of $620 million to $650 million. The company is still working through technical issues with these systems and the delays in third-party components outlined previously have compressed the timelines available to work through these issues. Significant risks remain to achieve these acceptances before year-end. To the extent that one or more of these system acceptances is not completed by the end of the year, the company expects that those acceptances would be completed in early 2017.
GAAP and Non-GAAP gross margin for the year is expected to be in the range of 34%. Non-GAAP operating expenses for the year are anticipated to be about $200 million. For 2016, GAAP operating expenses are anticipated to be about $11 million higher than non-GAAP operating expenses, and GAAP gross profit is expected to about $1 million lower than non-GAAP gross profit.
Actual results for any future periods are subject to large fluctuations given the nature of Cray's business.
Recent highlights include the following: