For the third quarter of 2018, overall gross profit margin on a GAAP and non-GAAP basis was 27%, compared to 36% on a GAAP and non-GAAP basis in the third quarter of 2017.
Operating expenses for the third quarter of 2018 were $48.0 million, compared to $54.7 million in the third quarter of 2017. Non-GAAP operating expenses for the third quarter of 2018 were $44.6 million, compared to $43.9 million in the third quarter of 2017.
As of September 30, 2018, cash, investments, and restricted cash totaled $184 million. Working capital at the end of the third quarter was $294 million, compared to $325 million at June 30, 2018.
"We had a solid quarter, highlighted by several large system installations, as well as continued strong bookings and market activity", stated Peter Ungaro, president and CEO of Cray. "Today we launched our next generation supercomputing platform, code-named Shasta, which we plan to begin shipping late next year. This system's revolutionary design, including a new Cray designed system interconnect, builds on our long history of leadership at the high-end of the market to deliver game-changing innovations in hardware and software. NERSC, the National Energy Research Scientific Computing Center, selected Shasta and a future-generation Cray storage solution for its NERSC-9 programme. At $146 million, this is one of the largest awards in our company's history and a major endorsement of our technology roadmap. Without a doubt, Shasta represents a major step in setting ourselves up for strong future growth."
For 2018, while a wide range of results remains possible, Cray expects revenue to be in the range of $450 million. For 2018, GAAP and non-GAAP gross margins are expected to be in the range of 30%. Non-GAAP operating expenses for 2018 are expected to be in the range of $190 million. For 2018, non-GAAP adjustments are expected to total about $14 million, driven primarily by share-based compensation. For the year, GAAP operating expenses are anticipated to be about $12 million higher than non-GAAP operating expenses, and GAAP gross profit is expected to be about $2 million lower than non-GAAP gross profit.
Based on this outlook, Cray's effective GAAP and non-GAAP tax rates for 2018 are both expected to be in the low-single digit range, on a percentage basis.
While a wide range of results remains possible and it is still early in the planning process, Cray expects 2019 annual revenue to grow modestly compared to its current 2018 outlook.
Actual results for any future periods are subject to large fluctuations given the nature of Cray's business.
Recent highlights include the following:
Cray introduces first exascale-class supercomputer ...
DOE to build next-generation supercomputer at Lawrence Berkeley National Laboratory ...
FaceMe to use Tatau's distributed supercomputer ...
A quantum computer for Europe: Joining forces for new FET flagship project OpenSuperQ ...
Tianhe-2 supercomputer works out the criterion for quantum supremacy ...
A billion euro for quantum research - the Danish contribution ...
One step closer to complex quantum teleportation ...
Tests show integrated quantum chip operations possible ...
Researchers create scalable platform for on-chip quantum emitters ...
Berkeley computer theorists show path to verifying that quantum beats classical ...
Multi-functional quantum bits for future computers ...
PRACE to issue The Scientific Case for Computing in Europe 2018-2026 ...
PRACE Digest 2018 now available online ...
Open Edge and HPC Initiative to be launched at SC18 ...
Human brain supercomputer with 1 million processors switched on for first time ...
Bright unveils plans to exhibit at SC18 in Dallas ...
Cray reports third quarter 2018 financial results ...
Ohio Supercomputer Center installing new Pitzer Cluster built by Dell EMC ...
SDSC Chief Data Science Officer Ilkay Altintas named an HDSI Fellow ...
Esther Bron is the winner of the Young eScientist Award 2018 ...
HPC & Artificial Intelligence: Addressing humanity's grand challenges at SC18 ...
Machine learning to help optimize traffic and reduce pollution ...
Cloud computing load balancing based on ant colony algorithms improves performance ...
VoiceBase extends deep learning neural network compute to Verne Global ...