Global supercomputer leader Cray Inc. (Nasdaq:CRAY) today announced
financial results for its second quarter ended June 30, 2017.
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 second quarter of 2017 was $87.1 million,
compared to $100.2 million in the second quarter of 2016. Net
loss for the second quarter of 2017 was $6.8 million, or $0.17 per
diluted share, compared to a net loss of $13.1 million, or $0.33
per diluted share in the second quarter of 2016. Non-GAAP net
loss was $8.0 million, or $0.20 per diluted share for the second
quarter of 2017, compared to non-GAAP net loss of $11.4 million, or
$0.29 per diluted share for the same period of 2016.
Overall gross profit margin on a GAAP and non-GAAP basis for the
second quarter of 2017 was 33%, compared to 36% for the second
quarter of 2016.
Operating expenses for the second quarter of 2017 were $39.8
million, compared to $51.8 million for the second quarter of
2016. Non-GAAP operating expenses for the second quarter of
2017 were $37.5 million, compared to $49.0 million for the second
quarter of 2016. Operating expenses for the second quarter of
2017 benefited from increased research and development credits.
As of June 30, 2017, cash, investments and restricted cash
totaled $253 million. Working capital at the end of the
second quarter was $342 million, compared to $350 million at the
end of the first quarter.
“As data continues to expand at an explosive rate, storage is
becoming an increasingly key aspect to our strategic growth areas,
including modeling and simulation, big data analytics, and
artificial intelligence/deep learning,” said Peter Ungaro,
president and CEO of Cray. “We recently entered into an
agreement to complete an exciting transaction and strategic
partnership with Seagate that will strengthen our efforts in this
area, broaden our storage portfolio and help us drive new growth in
the high-performance storage market. At the same time, our
market has continued to experience a prolonged downturn, one which
we believe will be temporary, but which drove us to take the
difficult step last week to better align our workforce with both
the short-term market realities and our long-term business
strategies. I want to thank those employees who were
personally impacted. I remain positive about the long-term
prospects of our business as we remain well positioned to drive
growth into the future.”
OutlookFor 2017, while a wide range of results
remains possible, Cray expects revenue to be in the range of $400
million for the year. Revenue in the third quarter of 2017 is
expected to be approximately $60 million. GAAP and non-GAAP
gross margins for the year are expected to be in the low- to
mid-30% range. Non-GAAP operating expenses for 2017,
including an estimate for what the impact of the Seagate
transaction would be, are expected to be in the range of $190
million. For 2017, GAAP operating expenses are anticipated to
be about $24 million higher than non-GAAP operating expenses,
driven by stock-based compensation, restructuring, and costs
related to the Seagate transaction. GAAP gross profit is
expected to be about $1 million lower than non-GAAP gross profit as
a result of stock based compensation.
Actual results for any future periods are subject to large
fluctuations given the nature of Cray’s business.
Recent Highlights
- In July, Cray announced it has signed a definitive agreement
with Seagate to complete a strategic transaction and enter into a
partnership centered around Seagate's ClusterStor high-performance
storage business. The agreement also calls for Seagate and
Cray to collaborate to incorporate the latest Seagate technology
into future ClusterStor and Sonexion products. Cray will
continue to support and enhance the ClusterStor product line and to
support new and existing customers going forward.
- In July, Cray announced that it will provide a Urika-GX to the
Alan Turing Institute through a collaboration between Cray, Intel
and the Institute. The agile analytics platform will enable
the development of advanced applications across a number of
scientific fields including engineering and technology, defense and
security, smart cities, financial services and life sciences.
- In June, Cray announced the Cray Urika-XC analytics software
suite, bringing graph analytics, deep learning, and robust big data
analytics tools to the Company's flagship line of Cray XC
supercomputers. With the Cray Urika-XC software suite,
analytics and Artificial Intelligence (AI) workloads can run
alongside scientific modeling and simulations on XC
supercomputers.
- In June, Cray was awarded a contract with the National
Institute of Water and Atmospheric Research in New Zealand to
provide two Cray XC50 supercomputers and a Cray CS400 cluster
supercomputer in a contract valued at more than $18 million.
- In June, Leidos and Cray announced that the companies signed a
strategic alliance agreement to develop, market and sell
Multi-Level Security solutions that include the Cray CS series of
cluster supercomputers to Federal and commercial customers.
- In May, Markley and Cray announced a partnership to provide
supercomputing as a service solutions that combine the power of
Cray supercomputers with the premier hosting capabilities of
Markley. Through the partnership, Markley will offer Cray
supercomputing technologies, as a hosted offering, and both
companies will collaborate to build and develop industry-specific
solutions.
- In May, Cray announced the launch of two new Cray CS-Storm
accelerated cluster supercomputers -- the Cray CS-Storm 500GT and
the Cray CS-Storm 500NX. Purpose-built for the most demanding
AI workloads, the new Cray systems will provide customers with
powerful, accelerator-optimized solutions for running machine
learning and deep learning applications.
Conference Call InformationCray will host a
conference call today, Thursday, July 27, 2017 at 1:30 p.m.
PDT (4:30 p.m. EDT) to discuss its second quarter ended
June 30, 2017 financial results. To access the call,
please dial into the conference at least 10 minutes prior to the
beginning of the call at (855) 894-4205. International callers
should dial (765) 889-6838 and use the conference ID
#56308197. 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
#56308197. The conference call replay will be available for
72 hours, beginning at 4:45 p.m. PDT on Thursday, July 27,
2017.
Use of Non-GAAP Financial MeasuresThis press
release contains “non-GAAP financial measures” under the rules of
the U.S. Securities and Exchange Commission (“SEC”). A
reconciliation of U.S. generally accepted accounting principles, or
GAAP, to non-GAAP results is included in the financial tables
included in this press release. Management believes that the
non-GAAP financial measures that we have set forth provide
additional insight for analysts and investors and facilitate an
evaluation of Cray’s financial and operational performance that is
consistent with the manner in which management evaluates Cray’s
financial performance. However, these non-GAAP financial
measures have limitations as an analytical tool, as they exclude
the financial impact of transactions necessary or advisable for the
conduct of Cray’s business, such as the granting of equity
compensation awards, and are not intended to be an alternative to
financial measures prepared in accordance with GAAP. Hence,
to compensate for these limitations, management does not review
these non-GAAP financial metrics in isolation from its GAAP
results, nor should investors. Non-GAAP financial measures
are not based on a comprehensive set of accounting rules or
principles. This non-GAAP information supplements, and is not
intended to represent a measure of performance in accordance with,
or disclosures required by GAAP. These measures are adjusted
as described in the reconciliation of GAAP to non-GAAP numbers at
the end of this release, but these adjustments should not be
construed as an inference that all of these adjustments or costs
are unusual, infrequent or non-recurring. Non-GAAP financial
measures should be considered in addition to, and not as a
substitute for or superior to, financial measures determined in
accordance with GAAP. Investors are advised to carefully
review and consider this non-GAAP information as well as the GAAP
financial results that are disclosed in Cray’s SEC filings.
Additionally, we have not quantitatively reconciled the non-GAAP
guidance measures disclosed under “Outlook” to their corresponding
GAAP measures because we do not provide specific guidance for the
various reconciling items such as stock-based compensation,
adjustments to the provision for income taxes, amortization of
intangibles, costs related to acquisitions, purchase accounting
adjustments, and gain on significant asset sales, as certain items
that impact these measures have not occurred, are out of our
control or cannot be reasonably predicted. Accordingly,
reconciliations to the non-GAAP guidance measures are not available
without unreasonable effort. Please note that the unavailable
reconciling items could significantly impact our financial
results.
About Cray Inc.Global supercomputing leader
Cray Inc. (Nasdaq:CRAY) provides innovative systems and solutions
enabling scientists and engineers in industry, academia and
government to meet existing and future simulation and analytics
challenges. Leveraging more than 40 years of experience in
developing and servicing the world’s most advanced supercomputers,
Cray offers a comprehensive portfolio of supercomputers and big
data storage and analytics solutions delivering unrivaled
performance, efficiency and scalability. Cray’s Adaptive
Supercomputing vision is focused on delivering innovative
next-generation products that integrate diverse processing
technologies into a unified architecture, allowing customers to
meet the market’s continued demand for realized performance. Go to
www.cray.com for more information.
Safe Harbor StatementThis press release
contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934 and Section 27A of the
Securities Act of 1933, including, but not limited to, statements
related to Cray’s financial guidance and expected operating
results, the expected closing of the transaction with Seagate, the
expected benefits of the potential transaction and partnership with
Seagate, the extent of the collaboration between Seagate and Cray
if the transaction closes, the expected financial impact of the
transaction with Seagate, Cray's ability to support new and
existing customers of CusterStor products, Cray's ability to expand
its product offerings and drive growth, Cray’s competitive position
in the high end supercomputing market and the timing of a rebound
in that market, and its product development, sales and delivery
plans. These statements involve current expectations, forecasts of
future events and other statements that are not historical facts.
Inaccurate assumptions and estimates as well as known and unknown
risks and uncertainties can affect the accuracy of forward-looking
statements and cause actual results to differ materially from those
anticipated by these forward-looking statements. Factors that could
affect actual future events or results include, but are not limited
to, the risk that Cray does not achieve the operational or
financial results that it expects, the risk that Cray will not be
able to secure orders for Cray products to be accepted in 2017 or
in future years when or at the levels expected, the risk that the
segments of the high-end of the supercomputing market that Cray
targets do not recover from the current downturn as early or as
completely as expected or at all, the risk that the systems ordered
by customers are not delivered when expected, do not perform as
expected once delivered or have technical issues that cannot be
corrected within the time for planned acceptances, the risk that
the acceptance process for delivered systems is not completed, or
customer acceptances are not received, when expected or at all, the
risk that the transaction with Seagate is not closed when expected,
or at all, the risk that Cray is not able to realize the expected
benefits of the transaction and partnership with Seagate, the risk
that Cray is not able to expand and penetrate its addressable
market as expected or at all, the risk that Seagate and Cray do not
collaborate as extensively as planned if the transaction with
Seagate closes, the risk that Cray does achieve the financial
results from the transaction with Seagate, the risk that Cray may
have lost important talent in its workforce restructuring and that
Cray may have a more difficult time retaining and motivating those
employees not directly impacted by the restructuring as well as
attracting new employees as a result of the restructuring, the risk
that government funding for research and development projects is
less than expected, the risk that new third-party processors and
other components for our systems are not available with the
anticipated performance, timing or pricing, the risk that Cray is
not able to successfully sell products and services in the big
data, artificial intelligence and commercial markets as expected or
at all, the risk that the expense to address Cray systems at
customer sites that have issues with third party components or with
Cray components, is material, the risk that Cray is not able to
successfully complete its planned product development efforts in a
timely fashion or at all, the risk that Cray is not able to achieve
anticipated gross margin or expense levels and such other risks as
identified in Cray’s Quarterly Report on Form 10-Q for the quarter
ended June 30, 2017, and from time to time in other reports filed
by Cray with the SEC. You should not rely unduly on these
forward-looking statements, which apply only as of the date of this
release. Cray undertakes no duty to publicly announce or report
revisions to these statements as new information becomes available
that may change Cray’s expectations.
CRAY, URIKA, SONEXION, and the stylized CRAY mark
are registered trademarks of Cray Inc. in the United States and
other countries, and CS-STORM and the XC and CS families of
supercomputers are trademarks of Cray Inc.
CRAY INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited and in thousands, except per
share data) |
|
|
|
|
|
|
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenue: |
|
|
|
|
|
|
|
|
Product |
|
$ |
51,531 |
|
|
$ |
68,929 |
|
|
$ |
72,659 |
|
|
$ |
140,339 |
|
Service |
|
35,604 |
|
|
31,306 |
|
|
73,507 |
|
|
65,445 |
|
Total
revenue |
|
87,135 |
|
|
100,235 |
|
|
146,166 |
|
|
205,784 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
Cost of
product revenue |
|
39,515 |
|
|
45,459 |
|
|
54,266 |
|
|
91,637 |
|
Cost of
service revenue |
|
19,277 |
|
|
18,615 |
|
|
39,748 |
|
|
38,024 |
|
Total
cost of revenue |
|
58,792 |
|
|
64,074 |
|
|
94,014 |
|
|
129,661 |
|
Gross
profit |
|
28,343 |
|
|
36,161 |
|
|
52,152 |
|
|
76,123 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research
and development, net |
|
17,325 |
|
|
27,399 |
|
|
49,965 |
|
|
53,239 |
|
Sales and
marketing |
|
15,247 |
|
|
15,380 |
|
|
29,900 |
|
|
31,381 |
|
General
and administrative |
|
7,205 |
|
|
9,019 |
|
|
16,002 |
|
|
16,357 |
|
Total
operating expenses |
|
39,777 |
|
|
51,798 |
|
|
95,867 |
|
|
100,977 |
|
Loss from
operations |
|
(11,434 |
) |
|
(15,637 |
) |
|
(43,715 |
) |
|
(24,854 |
) |
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
155 |
|
|
(421 |
) |
|
1,197 |
|
|
(857 |
) |
Interest income,
net |
|
897 |
|
|
526 |
|
|
1,775 |
|
|
1,110 |
|
Loss
before income taxes |
|
(10,382 |
) |
|
(15,532 |
) |
|
(40,743 |
) |
|
(24,601 |
) |
Income tax benefit |
|
3,542 |
|
|
2,406 |
|
|
14,688 |
|
|
6,462 |
|
Net
loss |
|
$ |
(6,840 |
) |
|
$ |
(13,126 |
) |
|
$ |
(26,055 |
) |
|
$ |
(18,139 |
) |
|
|
|
|
|
|
|
|
|
Basic net
loss per common share |
|
$ |
(0.17 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.65 |
) |
|
$ |
(0.46 |
) |
Diluted
net loss per common share |
|
$ |
(0.17 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.65 |
) |
|
$ |
(0.46 |
) |
|
|
|
|
|
|
|
|
|
Basic
weighted average shares outstanding |
|
40,051 |
|
|
39,768 |
|
|
40,022 |
|
|
39,710 |
|
Diluted
weighted average shares outstanding
|
|
40,051 |
|
|
39,768 |
|
|
40,022 |
|
|
39,710 |
|
CRAY INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited and in thousands, except share
amounts) |
|
|
June 30, 2017 |
|
December 31, 2016 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
170,950 |
|
|
$ |
222,962 |
|
Restricted cash |
1,027 |
|
|
— |
|
Short-term investments |
79,833 |
|
|
— |
|
Accounts
and other receivables, net |
75,173 |
|
|
197,941 |
|
Inventory |
155,840 |
|
|
88,254 |
|
Prepaid
expenses and other current assets |
18,662 |
|
|
20,006 |
|
Total
current assets |
501,485 |
|
|
529,163 |
|
|
|
|
|
Long-term restricted
cash |
1,030 |
|
|
1,655 |
|
Long-term investment in
sales-type lease, net |
28,111 |
|
|
31,050 |
|
Property and equipment,
net |
36,915 |
|
|
30,620 |
|
Service spares,
net |
2,610 |
|
|
3,023 |
|
Goodwill |
14,182 |
|
|
14,182 |
|
Intangible assets other
than goodwill, net |
1,347 |
|
|
1,637 |
|
Deferred tax
assets |
100,974 |
|
|
85,613 |
|
Other non-current
assets |
14,096 |
|
|
17,629 |
|
TOTAL
ASSETS |
$ |
700,750 |
|
|
$ |
714,572 |
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
56,483 |
|
|
$ |
45,504 |
|
Accrued
payroll and related expenses |
12,704 |
|
|
17,199 |
|
Other
accrued liabilities |
4,473 |
|
|
10,303 |
|
Deferred
revenue |
85,365 |
|
|
83,129 |
|
Total
current liabilities |
159,025 |
|
|
156,135 |
|
|
|
|
|
Long-term deferred
revenue |
25,175 |
|
|
27,258 |
|
Other non-current
liabilities |
13,733 |
|
|
5,703 |
|
TOTAL
LIABILITIES |
197,933 |
|
|
189,096 |
|
|
|
|
|
Shareholders’
equity: |
|
|
|
Preferred
stock — Authorized and undesignated, 5,000,000 shares; no shares
issued oroutstanding |
— |
|
|
— |
|
Common
stock and additional paid-in capital, par value $.01 per share —
Authorized,75,000,000 shares; issued and outstanding 40,347,022 and
40,757,458 shares, respectively
|
626,855 |
|
|
622,604 |
|
Accumulated other comprehensive income |
2,180 |
|
|
2,782 |
|
Accumulated deficit |
(126,218 |
) |
|
(99,910 |
) |
TOTAL
SHAREHOLDERS’ EQUITY |
502,817 |
|
|
525,476 |
|
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
700,750 |
|
|
$ |
714,572 |
|
CRAY INC. AND
SUBSIDIARIESReconciliation of Selected U.S. GAAP
Measures to non-GAAP Measures(Unaudited; in
millions, except EPS) |
|
|
|
|
|
Three Months Ended June 30, 2017 |
|
|
Net Loss |
|
Diluted EPS |
|
Operating Loss |
|
Gross Profit |
|
OperatingExpenses |
GAAP |
|
$ |
(6.8 |
) |
|
$ |
(0.17 |
) |
|
$ |
(11.4 |
) |
|
$ |
28.3 |
|
|
$ |
39.8 |
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation |
(1 |
) |
2.3 |
|
|
|
|
2.3 |
|
|
0.1 |
|
|
2.2 |
|
Amortization of
acquired and other intangibles |
(2 |
) |
0.1 |
|
|
|
|
0.1 |
|
|
|
|
0.1 |
|
Income tax on
reconciling items |
(3 |
) |
(1.0 |
) |
|
|
|
|
|
|
|
|
Other items impacting
tax provision |
(4 |
) |
(2.6 |
) |
|
|
|
|
|
|
|
|
Total reconciling
items |
|
(1.2 |
) |
|
(0.03 |
) |
|
2.4 |
|
|
0.1 |
|
|
2.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
$ |
(8.0 |
) |
|
$ |
(0.20 |
) |
|
$ |
(9.0 |
) |
|
$ |
28.4 |
|
|
$ |
37.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2016 |
|
|
Net Loss |
|
Diluted EPS |
|
Operating Loss |
|
Gross Profit |
|
OperatingExpenses |
GAAP |
|
$ |
(13.1 |
) |
|
$ |
(0.33 |
) |
|
$ |
(15.6 |
) |
|
$ |
36.2 |
|
|
$ |
51.8 |
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation |
(1 |
) |
2.8 |
|
|
|
|
2.8 |
|
|
0.2 |
|
|
2.6 |
|
Amortization of
acquired and other intangibles |
(2 |
) |
0.2 |
|
|
|
|
0.2 |
|
|
|
|
0.2 |
|
Income tax on
reconciling items |
(3 |
) |
(1.1 |
) |
|
|
|
|
|
|
|
|
Other items impacting
tax provision |
(4 |
) |
(0.2 |
) |
|
|
|
|
|
|
|
|
Total reconciling
items |
|
1.7 |
|
|
0.04 |
|
|
3.0 |
|
|
0.2 |
|
|
2.8 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
$ |
(11.4 |
) |
|
$ |
(0.29 |
) |
|
$ |
(12.6 |
) |
|
$ |
36.4 |
|
|
$ |
49.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Notes |
|
|
|
|
|
|
|
|
|
|
(1)
Adjustments to exclude non-cash expenses related to share-based
compensation |
(2)
Adjustments to exclude amortization of acquired intangible and
other intangible assets |
(3)
Adjustments associated with the estimated tax impact on non-GAAP
reconciling items at our marginal US tax rate of approximately
38% |
(4) As
part of an alternative non-GAAP income measure, we have adjusted
GAAP taxes as reported including the impact to the GAAP tax
provision of the non-GAAP reconciling items (adjusted for note (3)
above), related to the utilization or increase of our net operating
loss carryforwards. And when applicable, we also adjust for changes
in our valuation allowance held against deferred tax assets |
CRAY INC. AND
SUBSIDIARIESReconciliation of Selected U.S. GAAP
Measures to non-GAAP Measures(Unaudited; in
millions, except EPS) |
|
|
|
|
|
Six Months Ended June 30, 2017 |
|
|
Net Loss |
|
Diluted EPS |
|
Operating Loss |
|
Gross Profit |
|
OperatingExpenses |
GAAP |
|
$ |
(26.1 |
) |
|
$ |
(0.65 |
) |
|
$ |
(43.7 |
) |
|
$ |
52.2 |
|
|
$ |
95.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation |
(1 |
) |
5.0 |
|
|
|
|
5.0 |
|
|
0.2 |
|
|
4.8 |
|
Amortization of
acquired and other intangibles |
(2 |
) |
0.3 |
|
|
|
|
0.3 |
|
|
|
|
0.3 |
|
Income tax on
reconciling items |
(3 |
) |
(2.0 |
) |
|
|
|
|
|
|
|
|
Other items impacting
tax provision |
(4 |
) |
(13.7 |
) |
|
|
|
|
|
|
|
|
Total reconciling
items |
|
(10.4 |
) |
|
(0.26 |
) |
|
5.3 |
|
|
0.2 |
|
|
5.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
$ |
(36.5 |
) |
|
$ |
(0.91 |
) |
|
$ |
(38.4 |
) |
|
$ |
52.4 |
|
|
$ |
90.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016 |
|
|
Net Loss |
|
Diluted EPS |
|
Operating Loss |
|
Gross Profit |
|
OperatingExpenses |
GAAP |
|
$ |
(18.1 |
) |
|
$ |
(0.46 |
) |
|
$ |
(24.9 |
) |
|
$ |
76.1 |
|
|
$ |
101.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation |
(1 |
) |
5.6 |
|
|
|
|
5.6 |
|
|
0.3 |
|
|
5.3 |
|
Purchase accounting
adjustments |
(2 |
) |
0.1 |
|
|
|
|
0.1 |
|
|
0.1 |
|
|
|
Amortization of
acquired and other intangibles |
(2 |
) |
0.4 |
|
|
|
|
0.4 |
|
|
|
|
0.4 |
|
Income tax on
reconciling items |
(3 |
) |
(2.4 |
) |
|
|
|
|
|
|
|
|
Other items impacting
tax provision |
(4 |
) |
(2.4 |
) |
|
|
|
|
|
|
|
|
Total reconciling
items |
|
1.3 |
|
|
0.04 |
|
|
6.1 |
|
|
0.4 |
|
|
5.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
$ |
(16.8 |
) |
|
$ |
(0.42 |
) |
|
$ |
(18.8 |
) |
|
$ |
76.5 |
|
|
$ |
95.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Notes |
|
|
|
|
|
|
|
|
|
|
(1)
Adjustments to exclude non-cash expenses related to share-based
compensation |
(2)
Adjustments to exclude amortization of acquired intangible and
other intangible assets and other acquisition-related charges |
(3)
Adjustments associated with the estimated tax impact on non-GAAP
reconciling items at our marginal US tax rate of approximately
38% |
(4) As
part of an alternative non-GAAP income measure, we have adjusted
GAAP taxes as reported including the impact to the GAAP tax
provision of the non-GAAP reconciling items (adjusted for note (3)
above), related to the utilization or increase of our net operating
loss carryforwards. And when applicable, we also adjust for changes
in our valuation allowance held against deferred tax assets |
CRAY INC. AND
SUBSIDIARIESReconciliation of Selected U.S. GAAP
Measures to non-GAAP Measures(Unaudited; in
millions, except percentages) |
|
|
|
|
|
Three Months Ended June 30, 2017 |
|
|
Product |
|
Service |
|
Total |
|
|
Gross Profit |
|
GrossMargin |
|
Gross Profit |
|
GrossMargin |
|
Gross Profit |
|
GrossMargin |
GAAP |
|
$ |
12.0 |
|
|
23 |
% |
|
$ |
16.3 |
|
|
46 |
% |
|
$ |
28.3 |
|
|
33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation |
(1 |
) |
|
|
|
|
0.1 |
|
|
|
|
0.1 |
|
|
|
Total reconciling
items |
|
— |
|
|
— |
% |
|
0.1 |
|
|
— |
% |
|
0.1 |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
$ |
12.0 |
|
|
23 |
% |
|
$ |
16.4 |
|
|
46 |
% |
|
$ |
28.4 |
|
|
33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2016 |
|
|
Product |
|
Service |
|
Total |
|
|
Gross Profit |
|
GrossMargin |
|
Gross Profit |
|
GrossMargin |
|
Gross Profit |
|
GrossMargin |
GAAP |
|
$ |
23.5 |
|
|
34 |
% |
|
$ |
12.7 |
|
|
41 |
% |
|
$ |
36.2 |
|
|
36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
(1 |
) |
0.1 |
|
|
|
|
0.1 |
|
|
|
|
0.2 |
|
|
|
Total reconciling
items |
|
0.1 |
|
|
— |
% |
|
0.1 |
|
|
— |
% |
|
0.2 |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
$ |
23.6 |
|
|
34 |
% |
|
$ |
12.8 |
|
|
41 |
% |
|
$ |
36.4 |
|
|
36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes |
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjustments to exclude non-cash expenses related to share-based
compensation |
CRAY INC. AND
SUBSIDIARIESReconciliation of Selected U.S. GAAP
Measures to non-GAAP Measures(Unaudited; in
millions, except percentages) |
|
|
|
|
|
Six Months Ended June 30, 2017 |
|
|
Product |
|
Service |
|
Total |
|
|
Gross Profit |
|
GrossMargin |
|
Gross Profit |
|
GrossMargin |
|
Gross Profit |
|
GrossMargin |
GAAP |
|
$ |
18.4 |
|
|
25 |
% |
|
$ |
33.8 |
|
|
46 |
% |
|
$ |
52.2 |
|
|
36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation |
(1 |
) |
0.1 |
|
|
|
|
0.1 |
|
|
|
|
0.2 |
|
|
|
Total reconciling
items |
|
0.1 |
|
|
— |
% |
|
0.1 |
|
|
— |
% |
|
0.2 |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
$ |
18.5 |
|
|
25 |
% |
|
$ |
33.9 |
|
|
46 |
% |
|
$ |
52.4 |
|
|
36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016 |
|
|
Product |
|
Service |
|
Total |
|
|
Gross Profit |
|
GrossMargin |
|
Gross Profit |
|
GrossMargin |
|
Gross Profit |
|
GrossMargin |
GAAP |
|
$ |
48.7 |
|
|
35 |
% |
|
$ |
27.4 |
|
|
42 |
% |
|
$ |
76.1 |
|
|
37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation |
(1 |
) |
0.2 |
|
|
|
|
0.1 |
|
|
|
|
0.3 |
|
|
|
Purchase accounting
adjustments
|
(2 |
) |
0.1 |
|
|
|
|
|
|
|
|
0.1 |
|
|
|
Total reconciling
items |
|
0.3 |
|
|
— |
% |
|
0.1 |
|
|
— |
% |
|
0.4 |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
$ |
49.0 |
|
|
35 |
% |
|
$ |
27.5 |
|
|
42 |
% |
|
$ |
76.5 |
|
|
37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes |
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Adjustments to exclude non-cash expenses related to share-based
compensation |
(2)
Adjustments to exclude acquisition-related charges |
CRAY INC. AND
SUBSIDIARIESReconciliation of GAAP to non-GAAP Net
Loss(Unaudited; in millions except per share
amounts and percentages) |
|
|
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
GAAP Net Loss |
|
$ |
(6.8 |
) |
|
$ |
(13.1 |
) |
|
$ |
(26.1 |
) |
|
$ |
(18.1 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments
impacting gross profit: |
|
|
|
|
|
|
|
|
Share-based
compensation |
(1 |
) |
0.1 |
|
|
0.2 |
|
|
0.2 |
|
|
0.3 |
|
Purchase
accounting adjustments |
(2 |
) |
— |
|
|
— |
|
|
— |
|
|
0.1 |
|
Total adjustments
impacting gross profit |
|
0.1 |
|
|
0.2 |
|
|
0.2 |
|
|
0.4 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross margin
percentage |
|
33 |
% |
|
36 |
% |
|
36 |
% |
|
37 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments
impacting operating expenses: |
|
|
|
|
|
|
|
|
Share-based
compensation |
(1 |
) |
2.2 |
|
|
2.6 |
|
|
4.8 |
|
|
5.3 |
|
Amortization of
acquired and other intangibles |
(2 |
) |
0.1 |
|
|
0.2 |
|
|
0.3 |
|
|
0.4 |
|
Total adjustments
impacting operating expenses |
|
2.3 |
|
|
2.8 |
|
|
5.1 |
|
|
5.7 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments
impacting tax provision: |
|
|
|
|
|
|
|
|
Income tax on
reconciling items |
(3 |
) |
(1.0 |
) |
|
(1.1 |
) |
|
(2.0 |
) |
|
(2.4 |
) |
Other items
impacting tax provision |
(4 |
) |
(2.6 |
) |
|
(0.2 |
) |
|
(13.7 |
) |
|
(2.4 |
) |
|
|
(3.6 |
) |
|
(1.3 |
) |
|
(15.7 |
) |
|
(4.8 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP Net Loss |
|
$ |
(8.0 |
) |
|
$ |
(11.4 |
) |
|
$ |
(36.5 |
) |
|
$ |
(16.8 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted Net
Loss per common share |
|
$ |
(0.20 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.91 |
) |
|
$ |
(0.42 |
) |
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares |
|
40.1 |
|
|
39.8 |
|
|
40.0 |
|
|
39.7 |
|
|
|
|
|
|
|
|
|
|
Notes |
|
|
|
|
|
|
|
|
(1)
Adjustments to exclude non-cash expenses related to share-based
compensation |
(2)
Adjustments to exclude amortization of acquired intangible and
other intangible assets and other acquisition-related charges |
(3)
Adjustments associated with the estimated tax impact on non-GAAP
reconciling items at our marginal US tax rate of approximately
38% |
(4) As
part of an alternative non-GAAP income measure, we have adjusted
GAAP taxes as reported including the impact to the GAAP tax
provision of the non-GAAP reconciling items (adjusted for note (3)
above), related to the utilization or increase of our net operating
loss carryforwards. And when applicable, we also adjust for changes
in our valuation allowance held against deferred tax assets |
|
Cray Media: |
|
|
Investors: |
Nick Davis |
|
|
Paul Hiemstra |
206/701-2123 |
|
|
206/701-2044 |
pr@cray.com |
|
|
ir@cray.com |
Cray (NASDAQ:CRAY)
Historical Stock Chart
From Feb 2024 to Mar 2024
Cray (NASDAQ:CRAY)
Historical Stock Chart
From Mar 2023 to Mar 2024