Washington | 0-26820 | 93-0962605 | ||
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
901 Fifth Avenue, Suite 1000 Seattle, WA | 98164 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press Release of Cray Inc., dated February 13, 2014 |
Cray Inc. | ||
By: | /s/ MICHAEL C. PIRAINO | |
Michael C. Piraino Vice President Administration, General Counsel and Corporate Secretary |
Exhibit No. | Description |
99.1 | Press Release of Cray Inc., dated February 13, 2014 |
Cray Media: | Investors: |
Nick Davis | Paul Hiemstra |
206/701-2123 | 206/701-2044 |
pr@cray.com | ir@cray.com |
• | In February, Cray won two new supercomputing contracts totaling more than $40 million to provide the Department of Defense High Performance Computing Modernization Program with three Cray XC30 supercomputers and two Cray Sonexion storage systems. Cray will be delivering systems to the U.S. Air Force Research Laboratory in Ohio and the Navy DOD Supercomputing Resource Center in Mississippi. |
• | In November, Cray was awarded a $30 million contract by the University of Stuttgart to expand the XC30 supercomputer, nicknamed "Hornet" at the University’s High Performance Computing Center Stuttgart (HLRS). The system, which will also include 2.3 petabytes of additional Cray file system storage for Lustre, is expected to go into production in 2015. |
• | In November, Cray announced that the Cray Compiler Environment (CCE) is now available on the Cray CS300 line of cluster supercomputers. CCE provides Cray customers with a unique, scalable HPC-optimized compiler. |
• | In November, Cray announced that its CS300 and XC30 supercomputers are now available with NVIDIA Tesla K40 GPU accelerators. Together with Cray’s latest OpenACC 2.0 compiler, this offers customers a major total cost of ownership advantage by being able to upgrade their systems and achieve a substantial performance boost for GPU-accelerated computing. |
• | In November, Cray launched a new big data framework that gives Cray customers the ability to more easily implement and run Apache Hadoop on the XC30 supercomputer. Fusing the benefits of supercomputing and big data, the Cray Framework for Hadoop package improves the overall efficiency and performance for XC30 customers deploying Hadoop in scientific big data environments. |
• | Cray’s YarcData division signed multiple new contracts with commercial and government customers for its Urika big data discovery appliance, including with a leading life sciences company which selected the Urika system as the development environment for its data discovery strategy. In the fourth quarter, the Pittsburgh Supercomputing Center was awarded an HPCwire Award for the Best Application of Big Data in HPC for their use of the Urika system to better understand cancer protein and gene interactions. |
• | In November, Cray was awarded an industry-leading 10 HPCwire awards from the readers and editors of HPCwire, including Best HPC Collaboration between Government and Industry, Best |
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue: | ||||||||||||||||
Product | $ | 282,389 | $ | 170,961 | $ | 436,330 | $ | 353,767 | ||||||||
Service | 24,980 | 17,868 | 89,419 | 67,291 | ||||||||||||
Total revenue | 307,369 | 188,829 | 525,749 | 421,058 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of product revenue | 181,827 | 123,692 | 298,244 | 231,237 | ||||||||||||
Cost of service revenue | 12,593 | 10,942 | 43,179 | 38,643 | ||||||||||||
Total cost of revenue | 194,420 | 134,634 | 341,423 | 269,880 | ||||||||||||
Gross profit | 112,949 | 54,195 | 184,326 | 151,178 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development, net | 25,979 | 18,177 | 87,728 | 64,303 | ||||||||||||
Sales and marketing | 17,172 | 12,579 | 51,345 | 37,180 | ||||||||||||
General and administrative | 8,063 | 7,282 | 23,603 | 20,707 | ||||||||||||
Total operating expenses | 51,214 | 38,038 | 162,676 | 122,190 | ||||||||||||
Net gain on sale of interconnect hardware development program | — | — | — | 139,068 | ||||||||||||
Income from operations | 61,735 | 16,157 | 21,650 | 168,056 | ||||||||||||
Other income (loss), net | (1,472 | ) | (101 | ) | (1,378 | ) | 472 | |||||||||
Interest income (loss), net | (37 | ) | 60 | 757 | 204 | |||||||||||
Income before income taxes | 60,226 | 16,116 | 21,029 | 168,732 | ||||||||||||
Income tax (expense) benefit | (9,219 | ) | (2,110 | ) | 11,194 | (7,491 | ) | |||||||||
Net income | $ | 51,007 | $ | 14,006 | $ | 32,223 | $ | 161,241 | ||||||||
Basic net income per common share | $ | 1.33 | $ | 0.38 | $ | 0.85 | $ | 4.42 | ||||||||
Diluted net income per common share | $ | 1.27 | $ | 0.36 | $ | 0.81 | $ | 4.27 | ||||||||
Basic weighted average shares outstanding | 38,236 | 37,130 | 37,832 | 36,509 | ||||||||||||
Diluted weighted average shares outstanding | 40,084 | 38,917 | 39,776 | 37,789 |
December 31, 2013 | December 31, 2012 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 192,633 | $ | 253,065 | ||||
Short-term investments | 14,048 | 52,563 | ||||||
Accounts and other receivables, net | 182,527 | 13,440 | ||||||
Inventory | 95,129 | 89,796 | ||||||
Prepaid expenses and other current assets | 20,999 | 11,823 | ||||||
Total current assets | 505,336 | 420,687 | ||||||
Long-term restricted cash | 13,768 | — | ||||||
Long-term investments | — | 17,577 | ||||||
Property and equipment, net | 30,278 | 25,543 | ||||||
Service inventory, net | 1,828 | 1,490 | ||||||
Goodwill | 14,182 | 14,182 | ||||||
Intangible assets other than goodwill, net | 6,362 | 7,981 | ||||||
Deferred tax assets | 19,206 | 10,041 | ||||||
Other non-current assets | 12,406 | 12,813 | ||||||
TOTAL ASSETS | $ | 603,366 | $ | 510,314 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 34,225 | $ | 34,732 | ||||
Accrued payroll and related expenses | 22,470 | 25,927 | ||||||
Other accrued liabilities | 22,225 | 8,616 | ||||||
Deferred revenue | 91,488 | 68,060 | ||||||
Total current liabilities | 170,408 | 137,335 | ||||||
Long-term deferred revenue | 50,477 | 29,254 | ||||||
Other non-current liabilities | 6,894 | 3,179 | ||||||
TOTAL LIABILITIES | 227,779 | 169,768 | ||||||
Shareholders’ equity: | ||||||||
Common stock and additional paid-in capital | 586,243 | 577,938 | ||||||
Accumulated other comprehensive income | 853 | 5,181 | ||||||
Accumulated deficit | (211,509 | ) | (242,573 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 375,587 | 340,546 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 603,366 | $ | 510,314 |
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
GAAP Net Income | $ | 51.0 | $ | 14.0 | $ | 32.2 | $ | 161.2 | ||||||||
Non-GAAP adjustments impacting gross profit: | ||||||||||||||||
Share-based compensation | (1) | 0.1 | 0.1 | 0.4 | 0.3 | |||||||||||
Purchase accounting adjustments | (2) | 0.1 | — | 1.3 | — | |||||||||||
Amortization of acquired and other intangibles | (2) | 0.5 | 0.2 | 2.0 | 0.2 | |||||||||||
Total adjustments impacting gross profit | 0.7 | 0.3 | 3.7 | 0.5 | ||||||||||||
Non-GAAP gross margin percentage | 37 | % | 29 | % | 36 | % | 36 | % | ||||||||
Non-GAAP adjustments impacting operating expenses: | ||||||||||||||||
Share-based compensation | (1) | 2.0 | 1.6 | 6.8 | 5.6 | |||||||||||
Amortization of acquired intangibles | (2) | 0.1 | 0.1 | 0.4 | 0.1 | |||||||||||
Acquisition costs | — | 0.9 | — | 0.9 | ||||||||||||
Total adjustments impacting operating expenses | 2.1 | 2.6 | 7.2 | 6.6 | ||||||||||||
Gain on sale to Intel | (3) | — | — | — | (139.1 | ) | ||||||||||
Non-GAAP adjustments impacting tax provision: | ||||||||||||||||
Income tax on reconciling items | (4) | — | (0.1 | ) | 0.7 | 4.4 | ||||||||||
Other items impacting tax provision | (5) | 5.4 | 0.4 | (13.5 | ) | (0.3 | ) | |||||||||
Total adjustments impacting tax provision | 5.4 | 0.3 | (12.8 | ) | 4.1 | |||||||||||
Non-GAAP Net Income | $ | 59.2 | $ | 17.2 | $ | 30.3 | $ | 33.3 | ||||||||
Non-GAAP Diluted Net Income per common share | $ | 1.48 | $ | 0.44 | $ | 0.76 | $ | 0.88 | ||||||||
Diluted weighted average shares | 40.1 | 38.9 | 39.8 | 37.8 | ||||||||||||
Notes | ||||||||||||||||
(1) Adjustments to exclude non-cash expenses related to share-based compensation | ||||||||||||||||
(2) Adjustments to exclude amortization of acquired intangible assets and other acquisition-related charges related to the acquisition of Appro International, Inc. | ||||||||||||||||
(3) Adjustment to exclude gain on divestiture of interconnect hardware development program in Q2 2012 | ||||||||||||||||
(4) Tax impact associated with reconciling items at non-GAAP tax rate | ||||||||||||||||
(5) Adjustments to reflect cash tax impact considering benefits principally related to Cray’s net operating loss carryforwards and changes in Cray’s valuation allowance held against deferred tax assets |
Three Months Ended December 31, 2013 | |||||||||||||||||||||||
Net Income | Operating Income | Diluted EPS | Gross Profit | Gross Margin | Operating Expenses | ||||||||||||||||||
GAAP | $ | 51.0 | $ | 61.7 | $ | 1.27 | $ | 112.9 | 37 | % | $ | 51.2 | |||||||||||
Share-based compensation | (1) | 2.1 | 2.1 | 0.05 | 0.1 | 2.0 | |||||||||||||||||
Purchase accounting adjustments | (2) | 0.1 | 0.1 | — | 0.1 | ||||||||||||||||||
Amortization of acquired intangibles | (2) | 0.6 | 0.6 | 0.02 | 0.5 | 0.1 | |||||||||||||||||
Acquisition costs | — | — | — | ||||||||||||||||||||
Income tax on reconciling items | (3) | — | — | ||||||||||||||||||||
Other items impacting tax provision | (4) | 5.4 | 0.14 | ||||||||||||||||||||
Total reconciling items | $ | 8.2 | $ | 2.8 | $ | 0.21 | $ | 0.7 | — | % | $ | 2.1 | |||||||||||
Non-GAAP | $ | 59.2 | $ | 64.5 | $ | 1.48 | $ | 113.6 | 37 | % | $ | 49.1 | |||||||||||
Three Months Ended December 31, 2012 | |||||||||||||||||||||||
Net Income | Operating Income | Diluted EPS | Gross Profit | Gross Margin | Operating Expenses | ||||||||||||||||||
GAAP | $ | 14.0 | $ | 16.2 | $ | 0.36 | $ | 54.2 | 29 | % | $ | 38.0 | |||||||||||
Share-based compensation | (1) | 1.7 | 1.7 | 0.04 | 0.1 | 1.6 | |||||||||||||||||
Purchase accounting adjustments | (2) | — | — | — | — | — | |||||||||||||||||
Amortization of acquired intangibles | (2) | 0.3 | 0.3 | 0.01 | 0.2 | 0.1 | |||||||||||||||||
Acquisition Costs | 0.9 | 0.9 | 0.02 | 0.9 | |||||||||||||||||||
Income tax on reconciling items | (3) | (0.1 | ) | — | |||||||||||||||||||
Other items impacting tax provision | (4) | 0.4 | 0.01 | ||||||||||||||||||||
Total reconciling items | $ | 3.2 | $ | 2.9 | $ | 0.08 | $ | 0.3 | — | % | $ | 2.6 | |||||||||||
Non-GAAP | $ | 17.2 | $ | 19.1 | $ | 0.44 | $ | 54.5 | 29 | % | $ | 35.4 | |||||||||||
Notes | |||||||||||||||||||||||
(1) Adjustments to exclude non-cash expenses related to share-based compensation | |||||||||||||||||||||||
(2) Adjustments to exclude amortization of acquired intangible and other intangible assets and other acquisition-related charges related to the acquisition of Appro International, Inc. | |||||||||||||||||||||||
(3) Tax impact associated with reconciling items at non-GAAP tax rate | |||||||||||||||||||||||
(4) Adjustments to reflect cash tax impact considering benefits principally related to Cray’s net operating loss carryforwards and changes in Cray’s valuation allowance held against deferred tax assets | |||||||||||||||||||||||
Twelve Months Ended December 31, 2013 | |||||||||||||||||||||||
Net Income | Operating Income | Diluted EPS | Gross Profit | Gross Margin | Operating Expenses | ||||||||||||||||||
GAAP | $ | 32.2 | $ | 21.7 | $ | 0.81 | $ | 184.3 | 35 | % | $ | 162.7 | |||||||||||
Share-based compensation | (1) | 7.2 | 7.2 | 0.18 | 0.4 | 6.8 | |||||||||||||||||
Purchase accounting adjustments | (2) | 1.3 | 1.3 | 0.03 | 1.3 | ||||||||||||||||||
Amortization of acquired intangibles | (2) | 2.4 | 2.4 | 0.06 | 2.0 | 0.4 | |||||||||||||||||
Acquisition costs | — | — | — | ||||||||||||||||||||
Gain on Intel sale | (3) | — | — | — | |||||||||||||||||||
Income tax on reconciling items | (4) | 0.7 | 0.02 | ||||||||||||||||||||
Other items impacting tax provision | (5) | (13.5 | ) | (0.34 | ) | ||||||||||||||||||
Total reconciling items | $ | (1.9 | ) | $ | 10.9 | $ | (0.05 | ) | $ | 3.7 | 1 | % | $ | 7.2 | |||||||||
Non-GAAP | $ | 30.3 | $ | 32.6 | $ | 0.76 | $ | 188.0 | 36 | % | $ | 155.5 | |||||||||||
Twelve Months Ended December 31, 2012 | |||||||||||||||||||||||
Net Income | Operating Income | Diluted EPS | Gross Profit | Gross Margin | Operating Expenses | ||||||||||||||||||
GAAP | $ | 161.2 | $ | 168.1 | $ | 4.27 | $ | 151.2 | 36 | % | $ | 122.2 | |||||||||||
Share-based compensation | (1) | 5.9 | 5.9 | 0.15 | 0.3 | 5.6 | |||||||||||||||||
Purchase accounting adjustments | (2) | — | — | — | — | ||||||||||||||||||
Amortization of acquired intangibles | (2) | 0.3 | 0.3 | 0.01 | 0.2 | 0.1 | |||||||||||||||||
Acquisition Costs | 0.9 | 0.9 | 0.02 | — | 0.9 | ||||||||||||||||||
Gain on Intel sale | (3) | (139.1 | ) | (139.1 | ) | (3.69 | ) | ||||||||||||||||
Income tax on reconciling items | (4) | 4.4 | 0.12 | ||||||||||||||||||||
Other items impacting tax provision | (5) | (0.3 | ) | — | |||||||||||||||||||
Total reconciling items | $ | (127.9 | ) | $ | (132.0 | ) | $ | (3.39 | ) | $ | 0.5 | — | % | $ | 6.6 | ||||||||
Non-GAAP | $ | 33.3 | $ | 36.1 | $ | 0.88 | $ | 151.7 | 36 | % | $ | 115.6 | |||||||||||
Notes | |||||||||||||||||||||||
(1) Adjustments to exclude non-cash expenses related to share-based compensation | |||||||||||||||||||||||
(2) Adjustments to exclude amortization of acquired intangible and other intangible assets and other acquisition-related charges related to the acquisition of Appro International, Inc. | |||||||||||||||||||||||
(3) Adjustment to exclude gain on divestiture of interconnect hardware development program in Q2 2012 | |||||||||||||||||||||||
(4) Tax impact associated with reconciling items at non-GAAP tax rate | |||||||||||||||||||||||
(5) Adjustments to reflect cash tax impact considering benefits principally related to Cray’s net operating loss carryforwards and changes in Cray’s valuation allowance held against deferred tax assets |
C/%U&
MU#I28>%>?(^(&G`1!=@8$"33F"**CK'DP3EQ?MX^Z&YT:4X>C/)T2=2WI.<8
MS@)76X*H`6](VO:Q(T!_U#CWFI3,WQ_=[7[K7A&U/H-NM^8&@*A!TJ TX'A)4-%3G)>N'\-5DA]&\&'TN]7AHC:=AM_
M/S%;JP[(!7H`>A4A->_I<#,"%/`'$