HPC Financial Update (Feb. 2017)

By Thomas Ayres

February 22, 2017

In this recurring feature, we’ll provide you with financial highlights from companies in the HPC industry. Check back in regularly for an updated list with the most pertinent fiscal information.

Cray (NASDAQ: CRAY)

Cray has reported fourth quarter and full year 2016 financial results. Total revenue for the year was $629.8 million, which was an increase of over $100 million from the year prior ($724.7 million). Net income was $10.6 million for the year, or $0.26 per diluted share.

For the fourth quarter, sales reached $346.6 million, a substantial increase from the same quarter of 2015 ($267.5 million). Net income for the quarter was $51.8 million, or $1.27 per diluted share.

“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.”

Click here to view our initial coverage of the news and here for more information from Cray.

Super Micro Computer (NASDAQ: SMCI) 

Supermicro has announced second quarter 2017 financial results. The company reported quarterly net sales of $652 million, which was an increase of 23.3% from the first quarter of the year and up 2% from the same quarter of 2016. GAAP net income was $22 million, up 62.5% from the first quarter and down 36.6% from the same quarter of 2016. Server offerings accounted for 68.1% of the total revenue.

For the third quarter of 2017, Supermicro expects $570-$630 million in net sales and GAAP earnings per diluted share to sit between $0.34 and $0.42. For more information, click here.

“We are pleased to report record second quarter revenues of $652.0 million that exceeded our guidance and outpaced a strong compare with last year. Contributing to this strong growth was our Twin family product line including our FatTwin, Storage, HPC, MicroBlade, and strong growth from enterprise cloud and Asia Pacific, particularly China. Component shortages and pricing, product and geographic mix adversely impacted gross margins while improved leverage allowed us to deliver stronger operating margins from last quarter,” said Charles Liang, chairman and CEO. “We expect to continue the growth of last quarter and be reflected in the year-over-year revenue growth in the March quarter based on an increasing number of sizable customer engagements demanding the performance and advantages of our leading product lines. In addition, we are well positioned to benefit from technology transitions in 2017 and have upgraded our product lines to optimize these new technologies.”

Mellanox Technologies (NASDAQ: MLNX)

Mellanox Technologies has reported fourth quarter and full year 2016 results. For the year, total revenue was $857.5 million, GAAP operating income was $30.6 million, and GAAP net income was $18.5 million ($0.37 per diluted share). For the fourth quarter, revenue was $221.7 million, GAAP operating income was $13.4 million, and GAAP net income was $9 million ($0.18 per diluted share).

For the first quarter of 2017, the company predicts revenue to range between $200-210 million. For more information, click here.

“During the fourth quarter we saw continued sequential growth in our InfiniBand business, driven by robust customer adoption of our 100 Gigabit EDR solutions into artificial intelligence, machine learning, high-performance computing, storage, database and more. Our quarterly, and full-year 2016 results, highlight InfiniBand’s continued leadership in high-performance interconnects,” said Eyal Waldman, president and CEO of Mellanox. “Customer adoption of our 25, 50, and 100 gigabit Ethernet solutions continued to grow in the fourth quarter. Adoption of Spectrum Ethernet switches by customers worldwide generated positive momentum exiting 2016. Our fourth quarter and full-year 2016 results demonstrate Mellanox’s diversification, and leadership in both Ethernet and InfiniBand. We anticipate growth in 2017 from all Mellanox product lines.”

Hewlett Packard Enterprise (NYSE: HPE)

HPE has announced full year and fourth quarter financial results for 2016. The company brought in $50.1 billion for the year, down 4% from the prior year period. For the fourth quarter, HPE’s net revenue was $12.5 billion, a decrease of 7% from the fourth quarter of 2015. HPE reported GAAP diluted net earnings per share of $1.82 for the year and $0.18 for the quarter.

For the first quarter of 2017, HPE predicts GAAP diluted net earnings per share to sit between $0.03 and $0.07. For the year, the company expects it to range between $0.72 and $0.82. For more information, click here.

“FY16 was a historic year for Hewlett Packard Enterprise,” said Meg Whitman, president and CEO of Hewlett Packard Enterprise. “During our first year as a standalone company, HPE delivered the business performance we promised, fulfilled our commitment to introduce groundbreaking innovation, and began to transform the company through strategic changes designed to enable even better financial performance.”

HPE has also just released its first quarter (2017) results, available here.

NVIDIA (NASDAQ: NVDA)

NVIDIA has reported results for the fourth quarter and fiscal 2017. Total sales for the year reached $6.91 billion, an increase of 38% from the year prior. GAAP earnings per diluted share were $1.13, up 117% from the previous year ($0.52). For the quarter, revenue was $2.17 billion, up 55% from the same quarter of 2016. GAAP earnings per diluted share reached $0.99, an increase of 19% from the third quarter.

For the first quarter of 2018, NVIDIA expects sales to sit around $1.90 billion. For more information, click here.

“We had a great finish to a record year, with continued strong growth across all our businesses,” said Jen-Hsun Huang, founder and CEO of NVIDIA. “Our GPU computing platform is enjoying rapid adoption in artificial intelligence, cloud computing, gaming, and autonomous vehicles.‎ Deep learning on NVIDIA GPUs, a breakthrough approach to AI, is helping to tackle challenges such as self-driving cars, early cancer detection and weather prediction. We can now see that ‎GPU-based deep learning will revolutionize major industries, from consumer internet and transportation to health care and manufacturing. The era of AI is upon us.”

IBM (NYSE: IBM)

IBM has reported 2016 fourth quarter and full year financial results. For the year, IBM announced $11.9 billion in net income from continuing operations, down 11% from the previous year ($13.4 billion). Diluted earnings per share were $12.39, also down (9%) from the year before. For the fourth quarter, the company reported net income of $4.5 billion from continuing operations, up 1% from the same quarter a year prior.

For 2017, IBM predicts GAAP diluted earnings per share to be at least $11.95. For more information, click here.

“In 2016, our strategic imperatives grew to represent more than 40 percent of our total revenue and we have established ourselves as the industry’s leading cognitive solutions and cloud platform company,” said Ginni Rometty, IBM chairman, president and CEO. “IBM Watson is the world’s leading AI platform for business, and emerging solutions such as IBM Blockchain are enabling new levels of trust in transactions of every kind. More and more clients are choosing the IBM Cloud because of its differentiated capabilities, which are helping to transform industries, such as financial services, airlines and retail.”

AMD (NASDAQ: AMD)

AMD has reported 2016 fourth quarter and full year financial results. For the year, the company announced revenue of $4.27 billion, an increase of 7% from 2015 ($3.99 billion). Total revenue for the quarter was $1.11 billion, up 15% year-over-year ($958 million).

For the first quarter of 2017, AMD predicts revenue to decrease 11%, plus or minus 3%. For more information, click here.

“We met our strategic objectives in 2016, successfully executing our product roadmaps, regaining share in key markets, strengthening our financial foundation, and delivering annual revenue growth,” said Dr. Lisa Su, AMD president and CEO. “As we enter 2017, we are well positioned and on-track to deliver our strongest set of high-performance computing and graphics products in more than a decade.”

Fujitsu (OTC: FJTSY)

Fujitsu has announced 2016 third quarter results. Consolidated revenue for the quarter was 1,115.4 billion yen, down 51.4 billion yen from the same quarter of 2015. The company also reported an operating profit of 37.3 billion yen, up 23.2 billion yen from the year prior. Net financial income was 5.5 billion yen, an improvement of 2.9 billion yen from the same period of 2015.

For the full year of 2016, Fujitsu expects revenue to reach 4,500 billion yen with an operating profit of 120 billion yen. For more information, click here.

Seagate Technology (NASDAQ: STX)

Seagate has reported second quarter 2017 financial results. The company announced revenue of $2.9 billion, net income of $297 million, and diluted earnings per share of $1.00. For more information, click here.

“The Company’s product execution, operational performance, and financial results improved every quarter throughout 2016. In the December quarter we achieved near record results in gross margin, cash flow, and profitability. Seagate’s employees are to be congratulated for their incredible effort,” said Steve Luczo, Seagate’s chairman and CEO. “Looking ahead, we are optimistic about the long-term opportunities for Seagate’s business as enterprises and consumers embrace and benefit from the shift of storage to cloud and mobile applications. Seagate is well positioned to work with the leaders in this digital transformation with a broad market-leading storage solution portfolio.”

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