SEATTLE, Wash., Feb. 9 — Global supercomputer leader Cray Inc. (Nasdaq: 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, which compares 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.”
Due to current market conditions, the Company has limited visibility into 2017. While a wide range of results remains possible, the Company continues to believe it will be difficult to grow revenue compared to 2016. Revenue in the first quarter of 2017 is expected to be approximately $55 million. GAAP and non-GAAP gross margins for the year are expected to be in the low-mid 30% range. Non-GAAP operating expenses for 2017 are expected to be roughly flat with 2016 levels. For 2017, GAAP operating expenses are anticipated to be about $12 million higher than non-GAAP operating expenses, and GAAP gross profit is expected to be about $1 million lower than non-GAAP gross profit.
Actual results for any future periods are subject to large fluctuations given the nature of Cray’s business.
- In November, Cray launched its latest generation supercomputer, the Cray XC50, the company’s fastest supercomputer ever with a peak performance of one petaflop in a single cabinet. Among the many enhancements of the XC50, this new system adds support for the Nvidia Tesla P100 GPU accelerator as well as for next-generation Intel Xeon and Intel Xeon Phi processors.
- In January, Cray appointed Stathis Papaefstathiou to the position of senior vice president of R&D. With more than 30 years of high tech experience, Papaefstathiou has held senior-level positions at Aerohive Networks, F5 Networks, and Microsoft.
- In December, Cray announced the results of a deep learning collaboration between Cray, Microsoft, and the Swiss National Supercomputing Centre (CSCS) that expands the horizons of running deep learning algorithms at scale using the power of Cray supercomputers. Cray has validated and made available several deep learning toolkits on Cray XC and Cray CS-Storm systems to simplify the transition to running deep learning workloads at scale.
- In November, Cray highlighted recent momentum for the Urika-GX agile analytics platform and previewed ongoing software updates to the system. New customers include a manufacturing collaborative and a customer engagement marketing solution provider, both looking to harness the Urika-GX to deliver enhanced value to their customers.
- In November, Cray announced it had joined iEnergy the rapidly growing exploration and production industry community brokered by Halliburton Landmark. iEnergy community members can now choose to run Landmark SeisSpace Seismic Processing Software on a Cray CS400 cluster supercomputer.
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.