Cray reports increased Q2 sales
Global supercomputer provider Cray has reported financial results for the quarter ended 30 June at $67.9m compared to $28.7m in the same period last year. Revenue for the six-month period ended 30 June was $107.8m compared to $57.1m in the same period last year.
For the first half of the year, total operating expenses were $46.7m compared to $35.9m the year before. The higher operating expenses were almost entirely due to less R&D co-funding credits. Net loss was ($4.4m) or ($0.13) per share for the first half of 2011 compared to a net loss of ($18.2m) or ($0.53) per share in the prior year period. The first half of 2011 results included non-cash items of $4.3m for depreciation and amortisation and $2.1m related to stock compensation expense.
As of 30 June, cash balances totalled $135.6m.
'We had a solid quarter, with revenue up substantially year over year and strong gross profit margins,' said Peter Ungaro, president and CEO of Cray. 'We are getting great market feedback on our latest products and I'm particularly excited about our new hybrid supercomputer, the Cray XK6, which will be the first general-purpose supercomputer that allows users to harness the capability of GPUs to run real-world applications faster than ever before. In addition to a planned processor upgrade for our high-end systems, we continue to make good progress on our product roadmap and expect to release new Custom Engineering offerings late this year. While we have a lot of work left to do, we are confident in our prospects for the rest of the year and remain focused on our long term goals of growth and sustained profitability.'
Assuming all necessary acceptances are achieved within the year, total revenue for 2011 is anticipated to be $300-$340m. Quarterly revenue is expected to fluctuate for 2011 with third quarter revenue in the range of $35m and fourth quarter revenue likely representing more than 50 per cent of the annual total.
For the year, total gross margins are expected to be in the mid-30 per cent range. With a second $12m DARPA milestone anticipated for the fourth quarter, total operating expenses for 2011 are expected to be approximately $100-$105m, including restructuring expenses related to the company's workforce rebalancing announced in March 2011. Based on this outlook, the company expects to be profitable for 2011.