Cray sales decline 13 percent in 2Q17

Cray's revenue for the second quarter of 2017 was $87.1 million, down 13 percent when 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.”