Cray Announces Selected Preliminary 2012 Financial Results

Cray Announces Selected Preliminary 2012 Financial Results 
Company Increases 2013 Revenue Guidance to $500 Million 
SEATTLE, WA -- (Marketwire) -- 01/04/13 --  Global supercomputer
leader Cray Inc. (NASDAQ: CRAY) today announced selected preliminary
2012 financial results. The 2012 results presented in this release
are based on preliminary financial data and are subject to change
until the year-end financial reporting process is complete.  
Based on preliminary results, total revenue for 2012 is expected to
be about $420 million, of which less than $1 million is attributable
to the acquisition of Appro International, Inc. For 2012, gross
margins are expected to be approximately 36%, slightly higher than
previously provided guidance, and total operating expenses are
expected to be about $120 million, consistent with previously
provided guidance. Total operating expenses for 2012 will depend on
the final accounting treatment of the Appro acquisition and includes
estimates of approximately $7 million in stock based compensation and
acquisition related expenses. Based on these preliminary results, the
Company expects to be solidly profitable for 2012, independent of the
$139 million pre-tax gain on the development program divestiture
completed during the second quarter.  
As of Dec. 31, 2012, cash and investments are expected to total about
$320 million. 
"We had a record year in 2012 in revenue and operating income -- even
after excluding the gain from the Intel transaction," said Peter
Ungaro, president and CEO of Cray. "The year was highlighted by the
installations of both the largest system in our Company's history and
our largest commercial win ever, and by the building momentum in our
storage and Big Data initiatives. We completed the acceptance process
on the Blue Waters supercomputer at the University of Illinois, but
were not able to complete the upgrade to the XK7 system at Oak Ridge
National Laboratory. We now expect to complete the Oak Ridge
acceptance during the first half of 2013 and have increased our
outlook accordingly."  
While a wide range of results remains possible for 2013, the Company
now expects 2013 revenue to be about $500 million. Revenue is
expected to ramp during 2013 with about $60 million in the first
quarter and roughly 45% of the a
nnual revenue expected in the fourth
quarter. Gross margins for 2013 are anticipated to be in the mid-30%
range. Total operating expenses for the year are expected to be in
the range of $160 million, which includes approximately $10 million
in non-cash items including stock based compensation and the
preliminary estimate of amortization of items related to the Appro
acquisition. Based on this outlook, we expect to be profitable for
2013.  
Upcoming Event
 Cray will be attending the 15th Annual Needham Growth
Conference at the New York Palace Hotel in New York City. The Cray
presentation will be held on Wednesday, Jan. 16, at 2:10 p.m. EST.  
The Cray presentation will be available to the public via live audio
webcast. To listen to the webcast, go to the Investors section of the
Cray website at http://investors.cray.com. An archived version of the
webcast will be available on the Cray website for 90 days.  
About Cray Inc.
 As a global leader in supercomputing, Cray provides
highly advanced supercomputers and world-class services and support
to government, industry and academia. Cray technology is designed to
enable scientists and engineers to achieve remarkable breakthroughs
by accelerating performance, improving efficiency and extending the
capabilities of their most demanding applications. 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
surpass today's limitations and meeting the market's continued demand
for realized performance. Go to www.cray.com for more information. 
Safe Harbor Statement
 This 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 and its ability to complete
acceptance of the Cray XK7 upgrade at Oak Ridge National Laboratory
in the first half of 2013. These statements involve current
expectations, forecasts of future events and other statements that
are not historical facts. Inaccurate assumptions 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
changes to these preliminary results will be required as a result of
completing the financial reporting closing process and financial
audit, 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 realize the expected benefits of
the acquisition of Appro, the risk that Cray's Big Data and storage
growth initiatives are not successful, the risk that Cray will not be
able to secure orders for Cray systems to be delivered and accepted
in 2013 when or at the levels expected, the risk that the systems
ordered by customers are not delivered when expected or do not
perform as expected once delivered, the risk that customer
acceptances, including the Cray XK7 upgrade at Oak Ridge National
Laboratory, are not received when expected 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 the Company's quarterly
report on Form 10-Q for the period ended September 30, 2012, 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 is a registered trademark of Cray Inc. in the United States and
other countries and Cray XK7 is a trademark of Cray Inc. Other
product and service names mentioned herein are the trademarks of
their respective owners. 
Cray Media:
Nick Davis
206/701-2123
pr@cray.com  
Investors:
Paul Hiemstra
206/701-2044
ir@cray.com 
 
 
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