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Cray Announces Selected Preliminary 2012 Financial Results
Company Increases 2013 Revenue Guidance to $500 Million
By: Marketwire .
Jan. 4, 2013 08:00 AM
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 annual 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.
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.
Safe Harbor Statement
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.
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