Cray Reports 2015 Full Year and Fourth Quarter Financial Results

February 12, 2016

SEATTLE, Wash., Feb. 12 — Global supercomputer leader Cray Inc. (NASDAQ: CRAY) has announced financial results for the year and fourth quarter ended December 31, 2015.

For 2015, Cray reported total revenue of $724.7 million, which compares with $561.6 million for 2014. Net income for 2015 was $27.5 million, or $0.68 per diluted share, compared to $62.3 million, or $1.54 per diluted share for 2014. Net income results for 2014 benefited from a $52.6 million income tax benefit which was driven by a reduction of substantially all of the valuation allowance held against the Company’s deferred tax assets. Non-GAAP net income, which adjusts for selected unusual and non-cash items, was $53.0 million, or $1.30 per diluted share for 2015, compared to $24.3 million, or $0.60 per diluted share for 2014.

Revenue for the fourth quarter of 2015 was $267.5 million, which compares with $261.9 million in the fourth quarter of 2014. Net income for the fourth quarter of 2015 was $20.3 million, or $0.50 per diluted share, this compares to net income of $74.6 million, or $1.84 per diluted share in the fourth quarter of 2014. Net income results for the fourth quarter of 2014 benefited from a $33.8 million income tax benefit which was driven by a reduction of substantially all of the valuation allowance held against the Company’s deferred tax assets. Non-GAAP net income was $32.2 million, or $0.79per diluted share for the fourth quarter of 2015, compared to non-GAAP net income of $40.3 million, or $0.99 per diluted share for the same period of 2014.

Overall gross profit margin for 2015 was 31%, compared to 33% for 2014. Total non-GAAP gross profit margin for 2015 was 32%, compared to 34% for 2014.

Operating expenses for 2015 were $184.7 million, compared to $175.2 million for 2014. Non-GAAP operating expenses for 2015 were $173.3 million, compared to $163.7 million for 2014.

As of December 31, 2015, cash, investments and restricted cash totaled $285 million. Working capital increased $54 million to $415 million, compared to $362 million at the end of 2014.

“We had an outstanding year, highlighted by record revenue, strong profitability, and excellent growth on the commercial side of our business,” said Peter Ungaro, president and CEO of Cray. “Our momentum of new awards has also continued, with the European Centre for Medium-Range Weather Forecasts’ recent announcement to significantly upgrade and expand its Cray supercomputer and storage. We continue to make significant progress in our three focus areas of supercomputing, storage and analytics, with major refreshes in each planned for 2016. I’m excited about our growth path as we’re well positioned to again drive revenue growth and higher profits in 2016.”

Outlook

For 2016, while a wide range of results remains possible, the Company expects revenue to be in the $825 million range. Revenue is expected to be in the range of $100 million for the first quarter of 2016, with the remainder of the year heavily weighted to the fourth quarter. Non-GAAP gross margin for the year is expected to improve and to be one to two percentage points higher than for 2015. Non-GAAP operating expenses for the year are anticipated to be about $205 million. Based on this outlook, the Company expects to improve its GAAP and non-GAAP operating profit margin for 2016 as compared to 2015.

Cray’s 2016 effective non-GAAP tax rate is expected to be about 10%.

Actual results for any future period are subject to large fluctuations given the nature of Cray’s business.

Recent Highlights

  • In January, Cray was awarded a new contract to provide a major upgrade and expansion to the Cray XC supercomputers and Cray Sonexion storage system at the European Centre for Medium-Range Weather Forecasts(ECMWF). Consisting of products and multiple years of service, the contract is valued at more than $36 million and systems are expected to be delivered in 2016.
  • In November, Cray announced it was awarded a contract to provide a Cray XC40 supercomputer to the University of Warsaw in Poland. The six-cabinet Cray XC40 system is located in the University’s OCEAN research data center, a leading research center for computational and data driven sciences and one of the premier centers for large-scale high performance computing simulations and big data analytics in Central and Eastern Europe.
  • In November, Cray announced that it will deliver a high performance computing optimized Docker solution for the Cray XC line of supercomputers. Docker containers for Cray XC systems are designed to provide better application portability and bring ease-of-use to running highly-scalable applications on advanced supercomputers. The new feature will also be available for Cray CS400, Cray XE and Cray XK customers later in 2016.
  • In November, Cray was awarded a contract to provide the Alfred Wegener Institute in Bremerhaven, Germany with a Cray CS400 supercomputer featuring the new Intel Omni-Path Architecture. The system will also feature next-generation Intel Xeon processors, which are the follow-on to the Intel Xeon “Haswell” processors. The contract is valued at more than $3 million and the system is expected to be delivered in 2016.
  • In November, Cray announced plans to join the OpenHPC Project designed to create a unified community of key stakeholders across the HPC industry. Cray’s participation in OpenHPC is focused on standardizing software stack components, leveraging open-source technologies, and simplifying the maintenance and operation of the software stack for end-users.

Conference Call Information

Cray will host a conference call Thursday, February 11, 2016 at 1:30 p.m. PST (4:30 p.m. EST) to discuss its fourth quarter and year ended December 31, 2015 financial results. To access the call, please dial into the conference at least 10 minutes prior to the beginning of the call at (855) 894-4205. International callers should dial (765) 889-6838 and use the conference ID #41522985. To listen to the audio webcast, go to the Investors section of the Cray website at www.cray.com/company/investors.

If you are unable to attend the live conference call, an audio webcast replay will be available in the Investors section of the Cray website for 180 days. A telephonic replay of the call will also be available by dialing (855) 859-2056, international callers dial (404) 537-3406, and entering the conference ID #41522985. The conference call replay will be available for 72 hours, beginning at 4:45 p.m. PDT on Thursday, February 11, 2016.

About Cray Inc.

Global supercomputing leader Cray Inc. (NASDAQ: CRAY) provides innovative systems and solutions enabling scientists and engineers in industry, academia and government to meet existing and future simulation and analytics challenges. Leveraging more than 40 years of experience in developing and servicing the world’s most advanced supercomputers, Cray offers a comprehensive portfolio of supercomputers and big data storage and analytics solutions delivering unrivaled performance, efficiency and scalability. 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 meet the market’s continued demand for realized performance. Go to www.cray.com for more information.

Source: Cray

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industry updates delivered to you every week!

MLPerf Inference 4.0 Results Showcase GenAI; Nvidia Still Dominates

March 28, 2024

There were no startling surprises in the latest MLPerf Inference benchmark (4.0) results released yesterday. Two new workloads — Llama 2 and Stable Diffusion XL — were added to the benchmark suite as MLPerf continues Read more…

Q&A with Nvidia’s Chief of DGX Systems on the DGX-GB200 Rack-scale System

March 27, 2024

Pictures of Nvidia's new flagship mega-server, the DGX GB200, on the GTC show floor got favorable reactions on social media for the sheer amount of computing power it brings to artificial intelligence.  Nvidia's DGX Read more…

Call for Participation in Workshop on Potential NSF CISE Quantum Initiative

March 26, 2024

Editor’s Note: Next month there will be a workshop to discuss what a quantum initiative led by NSF’s Computer, Information Science and Engineering (CISE) directorate could entail. The details are posted below in a Ca Read more…

Waseda U. Researchers Reports New Quantum Algorithm for Speeding Optimization

March 25, 2024

Optimization problems cover a wide range of applications and are often cited as good candidates for quantum computing. However, the execution time for constrained combinatorial optimization applications on quantum device Read more…

NVLink: Faster Interconnects and Switches to Help Relieve Data Bottlenecks

March 25, 2024

Nvidia’s new Blackwell architecture may have stolen the show this week at the GPU Technology Conference in San Jose, California. But an emerging bottleneck at the network layer threatens to make bigger and brawnier pro Read more…

Who is David Blackwell?

March 22, 2024

During GTC24, co-founder and president of NVIDIA Jensen Huang unveiled the Blackwell GPU. This GPU itself is heavily optimized for AI work, boasting 192GB of HBM3E memory as well as the the ability to train 1 trillion pa Read more…

MLPerf Inference 4.0 Results Showcase GenAI; Nvidia Still Dominates

March 28, 2024

There were no startling surprises in the latest MLPerf Inference benchmark (4.0) results released yesterday. Two new workloads — Llama 2 and Stable Diffusion Read more…

Q&A with Nvidia’s Chief of DGX Systems on the DGX-GB200 Rack-scale System

March 27, 2024

Pictures of Nvidia's new flagship mega-server, the DGX GB200, on the GTC show floor got favorable reactions on social media for the sheer amount of computing po Read more…

NVLink: Faster Interconnects and Switches to Help Relieve Data Bottlenecks

March 25, 2024

Nvidia’s new Blackwell architecture may have stolen the show this week at the GPU Technology Conference in San Jose, California. But an emerging bottleneck at Read more…

Who is David Blackwell?

March 22, 2024

During GTC24, co-founder and president of NVIDIA Jensen Huang unveiled the Blackwell GPU. This GPU itself is heavily optimized for AI work, boasting 192GB of HB Read more…

Nvidia Looks to Accelerate GenAI Adoption with NIM

March 19, 2024

Today at the GPU Technology Conference, Nvidia launched a new offering aimed at helping customers quickly deploy their generative AI applications in a secure, s Read more…

The Generative AI Future Is Now, Nvidia’s Huang Says

March 19, 2024

We are in the early days of a transformative shift in how business gets done thanks to the advent of generative AI, according to Nvidia CEO and cofounder Jensen Read more…

Nvidia’s New Blackwell GPU Can Train AI Models with Trillions of Parameters

March 18, 2024

Nvidia's latest and fastest GPU, codenamed Blackwell, is here and will underpin the company's AI plans this year. The chip offers performance improvements from Read more…

Nvidia Showcases Quantum Cloud, Expanding Quantum Portfolio at GTC24

March 18, 2024

Nvidia’s barrage of quantum news at GTC24 this week includes new products, signature collaborations, and a new Nvidia Quantum Cloud for quantum developers. Wh Read more…

Alibaba Shuts Down its Quantum Computing Effort

November 30, 2023

In case you missed it, China’s e-commerce giant Alibaba has shut down its quantum computing research effort. It’s not entirely clear what drove the change. Read more…

Nvidia H100: Are 550,000 GPUs Enough for This Year?

August 17, 2023

The GPU Squeeze continues to place a premium on Nvidia H100 GPUs. In a recent Financial Times article, Nvidia reports that it expects to ship 550,000 of its lat Read more…

Shutterstock 1285747942

AMD’s Horsepower-packed MI300X GPU Beats Nvidia’s Upcoming H200

December 7, 2023

AMD and Nvidia are locked in an AI performance battle – much like the gaming GPU performance clash the companies have waged for decades. AMD has claimed it Read more…

DoD Takes a Long View of Quantum Computing

December 19, 2023

Given the large sums tied to expensive weapon systems – think $100-million-plus per F-35 fighter – it’s easy to forget the U.S. Department of Defense is a Read more…

Synopsys Eats Ansys: Does HPC Get Indigestion?

February 8, 2024

Recently, it was announced that Synopsys is buying HPC tool developer Ansys. Started in Pittsburgh, Pa., in 1970 as Swanson Analysis Systems, Inc. (SASI) by John Swanson (and eventually renamed), Ansys serves the CAE (Computer Aided Engineering)/multiphysics engineering simulation market. Read more…

Choosing the Right GPU for LLM Inference and Training

December 11, 2023

Accelerating the training and inference processes of deep learning models is crucial for unleashing their true potential and NVIDIA GPUs have emerged as a game- Read more…

Intel’s Server and PC Chip Development Will Blur After 2025

January 15, 2024

Intel's dealing with much more than chip rivals breathing down its neck; it is simultaneously integrating a bevy of new technologies such as chiplets, artificia Read more…

Baidu Exits Quantum, Closely Following Alibaba’s Earlier Move

January 5, 2024

Reuters reported this week that Baidu, China’s giant e-commerce and services provider, is exiting the quantum computing development arena. Reuters reported � Read more…

Leading Solution Providers

Contributors

Comparing NVIDIA A100 and NVIDIA L40S: Which GPU is Ideal for AI and Graphics-Intensive Workloads?

October 30, 2023

With long lead times for the NVIDIA H100 and A100 GPUs, many organizations are looking at the new NVIDIA L40S GPU, which it’s a new GPU optimized for AI and g Read more…

Shutterstock 1179408610

Google Addresses the Mysteries of Its Hypercomputer 

December 28, 2023

When Google launched its Hypercomputer earlier this month (December 2023), the first reaction was, "Say what?" It turns out that the Hypercomputer is Google's t Read more…

AMD MI3000A

How AMD May Get Across the CUDA Moat

October 5, 2023

When discussing GenAI, the term "GPU" almost always enters the conversation and the topic often moves toward performance and access. Interestingly, the word "GPU" is assumed to mean "Nvidia" products. (As an aside, the popular Nvidia hardware used in GenAI are not technically... Read more…

Shutterstock 1606064203

Meta’s Zuckerberg Puts Its AI Future in the Hands of 600,000 GPUs

January 25, 2024

In under two minutes, Meta's CEO, Mark Zuckerberg, laid out the company's AI plans, which included a plan to build an artificial intelligence system with the eq Read more…

Google Introduces ‘Hypercomputer’ to Its AI Infrastructure

December 11, 2023

Google ran out of monikers to describe its new AI system released on December 7. Supercomputer perhaps wasn't an apt description, so it settled on Hypercomputer Read more…

China Is All In on a RISC-V Future

January 8, 2024

The state of RISC-V in China was discussed in a recent report released by the Jamestown Foundation, a Washington, D.C.-based think tank. The report, entitled "E Read more…

Intel Won’t Have a Xeon Max Chip with New Emerald Rapids CPU

December 14, 2023

As expected, Intel officially announced its 5th generation Xeon server chips codenamed Emerald Rapids at an event in New York City, where the focus was really o Read more…

IBM Quantum Summit: Two New QPUs, Upgraded Qiskit, 10-year Roadmap and More

December 4, 2023

IBM kicks off its annual Quantum Summit today and will announce a broad range of advances including its much-anticipated 1121-qubit Condor QPU, a smaller 133-qu Read more…

  • arrow
  • Click Here for More Headlines
  • arrow
HPCwire