Cray Inc. Reports Third Quarter 2018 Financial Results
SEATTLE, Oct. 30, 2018 -- Global supercomputer leader Cray Inc. today announced financial results for its third quarter ended September 30, 2018.
All figures in this release are based on U.S. GAAP unless otherwise noted. A reconciliation of GAAP to non-GAAP measures is included in the financial tables in this press release.
Revenue for the third quarter of 2018 was $92.8 million, compared to $79.7 million in the third quarter of 2017. Net loss for the third quarter of 2018 was $22.4 million, or $0.55 per diluted share, compared to a net loss of $10.2 million, or $0.25 per diluted share in the third quarter of 2017. Non-GAAP net loss was $19.3 million, or $0.47 per diluted share for the third quarter of 2018, compared to non-GAAP net loss of $13.3 million, or $0.33 per diluted share in the third quarter of 2017.
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,” said 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 program. 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.
- Today, Cray unveiled its new, revolutionary supercomputing system code-named “Shasta.” Shasta incorporates next-generation Cray system software to enable modularity and extensibility, a new Cray-designed system interconnect, unparalleled flexibility in processing choice within a system, and a software environment that provides for seamless scalability.
- Today, the U.S. Department of Energy announced that the National Energy Research Scientific Computing Center has selected a Cray “Shasta” system for its NERSC-9 program. The program contract is valued at $146 million, one of the largest in Cray’s history.
- In October, Cray and Stradigi AI, a leading Canadian AI solutions provider, announced a strategic partnership to offer AI implementation solutions combining Stradigi AI’s specialized data science skills with Cray’s supercomputing expertise and advanced technologies.
- In October, Cray announced a new working relationship with the Haas F1 Team in the FIA Formula One World Championship. Beginning with the 2019 season, the third-year American racing team will use the computational capacity of a Cray CS500 supercomputer, which uses AMD EPYC 7000 processors, to handle its large simulations in support of future race car designs.
- In September, Cray announced that the Met Office, the U.K.’s National Weather Service, expanded its Cray XC40 supercomputer with AI and analytics capabilities. The Met Office added Cray’s Urika-XC AI and analytics software suite to its supercomputers to unlock the highest levels of business value from the massive volumes of weather data it processes daily.
- In September, Cray announced that the Institute for Basic Science in South Korea awarded the Company a contract valued at $9 million for a Cray XC50 supercomputer and a Cray ClusterStor L300 storage system.
- In September, Cray announced that it had delivered and installed a Cray XC50 supercomputer and a ClusterStor L300 storage system at Railway Technical Research Institute, the research and development arm for Japan Railways Group.
Conference Call Information
Cray will host a conference call today, Tuesday, October 30, 2018 at 1:30 p.m. PT (4:30 p.m. ET) to discuss its third quarter ended September 30, 2018 financial results. To access the call, please dial into the conference at least 10 minutes prior to the beginning of the call at (866) 362-9806. International callers should dial (409) 217-8435 and use the conference ID #4668235. To listen to the audio webcast, go to the Investors section of the Cray website at www.cray.com/company/investors.
If you are unable to attend the live conference call, an audio webcast replay will be available in the Investors section of the Cray website for 180 days. A telephonic replay of the call will also be available by dialing (855) 859-2056, international callers dial (404) 537-3406, and entering the conference ID #4668235. The conference call replay will be available for 72 hours, beginning at 4:45 p.m. PT on Tuesday, October 30, 2018.
About Cray Inc.
Cray Inc. combines computation and creativity so visionaries can keep asking questions that challenge the limits of possibility. Drawing on more than 45 years of experience, Cray develops the world’s most advanced supercomputers, pushing the boundaries of performance, efficiency and scalability. Cray continues to innovate today at the convergence of data and discovery, offering a comprehensive portfolio of supercomputers, high-performance storage, data analytics and artificial intelligence solutions. Go to www.cray.com for more information.
Source: Cray Inc.