Cray to Expand Storage Portfolio Through Strategic Transaction and Partnership With Seagate
July 26 2017 - 7:15PM
Global supercomputer leader Cray Inc. (Nasdaq:CRAY) today announced
it has signed a definitive agreement with Seagate to complete a
strategic transaction and enter into a partnership centered around
the ClusterStor® high-performance storage business. As part of
the partnership, Seagate and Cray will collaborate on future
ClusterStor products. Cray will continue to support and enhance the
ClusterStor product line and to support customers going forward.
Cray expects to add more than 100 Seagate employees and contractors
and to assume certain customer support obligations associated with
the ClusterStor product line.
"This partnership will be an exciting next step for Cray as we
broaden our portfolio and expand our ability to create a leadership
position in high performance storage products,” said Peter Ungaro,
president and CEO of Cray. “Building upon our long-term strategy
and the amazing growth of data, storage is becoming more important
in our market. With the push to exascale computing and the
explosive growth in artificial intelligence, deep learning and
analytics, the ability to integrate compute and storage into
supercomputing systems is more critical than ever.”
“Adding Seagate’s ClusterStor product line to our DataWarp and
Sonexion storage products will enable us to provide a more complete
solution to customers,” continued Peter Ungaro. “Current
ClusterStor customers and partners can be assured that we will
continue to advance and support the ClusterStor products. In
addition, I look forward to welcoming our new Cray employees along
with the ClusterStor partners and reseller channel – strengthening
our strategic positioning for growth into the future."
"In 2012 Cray became our first OEM and has continued over the
years to be our largest and most strategic ClusterStor partner.
Today’s announcement is really the perfect evolution of that
continuing, special partnership in HPC," said Ken Claffey, vice
president and general manager, Storage Systems Group at
Seagate. "As the leader in the supercomputing
market, Cray will be a great home for the ClusterStor,
employees, customers and partners.” Highlights of the
transaction and partnership include:
- Seagate’s existing ClusterStor Lustre, Secure Data Appliance
and Spectrum Scale customers will be able to receive service and
support from Cray.
- Cray expects to add more than 100 employees, primarily in
R&D, customer service and channel and reseller
support.
- Cray and Seagate will collaborate to incorporate the latest
Seagate technology into future ClusterStor and Cray® Sonexion®
products.
- Cray will receive certain assistance from Seagate to provide
support on existing service contracts.
- The transaction closing is expected to be completed late in the
third quarter of 2017.
- Cray expects the net impact of the transaction for Cray to be
in the range of breakeven for 2018.
- Cray will provide further detail on its second quarter 2017
financial results conference call on July 27, 2017.
Instructions for joining the conference call can be found
below.
Conference Call Information Cray will host a
conference call on 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.
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 the expected timing and closing of the transaction with
Seagate, the expected benefits of the potential transaction and
partnership, the extent of the collaboration between the parties if
the transaction closes, the Company's ability to expand its product
offerings and drive growth and the expected financial impact of the
transaction. These statements involve current expectations,
forecasts of future events and other statements that are not
historical facts. Inaccurate assumptions and 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 the transaction 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, the risk that Cray is
not able to expand and penetrate its addressable market as expected
or at all, the risk that the parties do not collaborate as
extensively as planned if the transaction closes, the risk that
Cray does achieve the financial results from the transaction and
such other risks as identified in the Company’s quarterly report on
Form 10-Q for the quarter ended March 31, 2017, and from time to
time in other reports filed by Cray with the U.S. Securities and
Exchange Commission. 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 the Company’s expectations.
Cray, the stylized CRAY mark and SONEXION are registered
trademarks of Cray Inc. in the United States and other countries.
Other product and service names mentioned herein are the trademarks
of their respective owners.
Cray Media:Juliet McGinnis206/701-2152jmcginnis@cray.com
Cray Investors:Paul Hiemstra206/701-2044ir@cray.com
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