Cray sales fall 13 percent in 2016

Cray has announced financial results for the year and fourth quarter ended December 31, 2016.

For 2016, Cray reported total revenue of $629.8 million, down 13% when compared with $724.7 million for 2015. Net income for 2016 was $10.6 million, or $0.26 per diluted share, compared to $27.5 million, or $0.68 per diluted share for 2015. Non-GAAP net income, which adjusts for selected unusual and non-cash items, was $19.9 million, or $0.49 per diluted share for 2016, compared to $53.0 million, or $1.30 per diluted share for 2015.

Revenue for the fourth quarter of 2016 was $346.6 million, which compares with $267.5 million in the fourth quarter of 2015. Net income for the fourth quarter of 2016 was $51.8 million, or $1.27 per diluted share, compared to net income of $20.3 million, or $0.50 per diluted share in the fourth quarter of 2015. Non-GAAP net income was $56.3 million, or $1.38 per diluted share for the fourth quarter of 2016, compared to non-GAAP net income of $32.2 million, or $0.79 per diluted share for the same period of 2015.

Overall gross profit margin on a GAAP and non-GAAP basis for 2016 was 35%. For 2015, GAAP and non-GAAP gross profit margin was 31% and 32%, respectively.

Operating expenses for 2016 were $211.1 million, compared to $184.7 million for 2015. Non-GAAP operating expenses for 2016 were $199.7 million, compared to $173.3 million for 2015.

As of December 31, 2016, cash and restricted cash totaled $225 million. Working capital at the end of the fourth quarter was $392 million, compared to $415 million at December 31, 2015.

“While 2016 wasn’t nearly as strong as we originally targeted, we finished the year well, with the largest revenue quarter in our history and solid cash balances, as well as delivering profitability for the year,” said Peter Ungaro, president and CEO of Cray. “We completed numerous large system installations around the world in the fourth quarter, providing our customers with the most scalable, highest performance supercomputing, storage and analytics solutions in the market. We continue to lead the industry at the high-end and, despite an ongoing downturn in the market, we’re in excellent position to continue to deliver for our customers and drive long-term growth.”