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 July 29, 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 July 29, 2014 |
Cray Media: | Investors: |
Nick Davis | Paul Hiemstra |
206/701-2123 | 206/701-2044 |
pr@cray.com | ir@cray.com |
• | In July, Cray was awarded one of the largest contracts in its history -- a $174 million win to provide the National Nuclear Security Administration (NNSA) with a next generation Cray XC supercomputer and a Cray Sonexion storage system. Nicknamed “Trinity” by NNSA, the system will be used to ensure the safety, security and effectiveness of the U.S.’s nuclear stockpile. |
• | In July, Cray announced that it was awarded a contract to provide the Tata Institute for Fundamental Research in Mumbai with a Cray XC30 supercomputer -- the first Cray XC30 system in India. |
• | In July, Cray appointed Max Schireson to its Board of Directors. As the CEO of MongoDB, a big data database company, Mr. Schireson brings a strong background in data analytics. |
• | In June, Cray announced it was awarded a $54 million contract to provide the Korea Meteorological Administration (KMA) with two next-generation Cray XC supercomputers and a Sonexion storage solution. This system will replace an existing Cray supercomputer and will be used to advance the Administration's weather forecasting and climate research. |
• | In June, Cray announced that it had joined the OpenStack Foundation as a Corporate Sponsor. Cray plans to contribute to OpenStack and work to integrate open source capabilities into future Cray products and services. |
• | In June, at the 2014 International Supercomputing Conference in Leipzig, Germany, Cray announced the launch of a new data management solution for Lustre file systems. This new capability is designed to simplify the management and preservation of data stored on Lustre, using Cray Tiered Adaptive Storage (TAS). |
• | In May, the Center for Computation Sciences at the University of Tsukuba in Japan put another Cray CS300 cluster supercomputer into production -- the second Cray CS300 system to be installed at the University. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue: | |||||||||||||||
Product | $ | 61,748 | $ | 62,353 | $ | 91,763 | $ | 122,221 | |||||||
Service | 23,399 | 22,114 | 48,494 | 41,793 | |||||||||||
Total revenue | 85,147 | 84,467 | 140,257 | 164,014 | |||||||||||
Cost of revenue: | |||||||||||||||
Cost of product revenue | 43,967 | 47,477 | 67,939 | 93,047 | |||||||||||
Cost of service revenue | 12,176 | 10,189 | 25,377 | 20,017 | |||||||||||
Total cost of revenue | 56,143 | 57,666 | 93,316 | 113,064 | |||||||||||
Gross profit | 29,004 | 26,801 | 46,941 | 50,950 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development, net | 24,189 | 19,968 | 46,810 | 40,194 | |||||||||||
Sales and marketing | 13,259 | 11,550 | 25,035 | 22,693 | |||||||||||
General and administrative | 5,316 | 5,085 | 10,729 | 10,570 | |||||||||||
Total operating expenses | 42,764 | 36,603 | 82,574 | 73,457 | |||||||||||
Loss from operations | (13,760 | ) | (9,802 | ) | (35,633 | ) | (22,507 | ) | |||||||
Other income (expense), net | (337 | ) | 145 | (983 | ) | (190 | ) | ||||||||
Interest income, net | 84 | 204 | 145 | 580 | |||||||||||
Loss before income taxes | (14,013 | ) | (9,453 | ) | (36,471 | ) | (22,117 | ) | |||||||
Income tax benefit | 7,265 | 9,303 | 16,785 | 14,357 | |||||||||||
Net loss | $ | (6,748 | ) | $ | (150 | ) | $ | (19,686 | ) | $ | (7,760 | ) | |||
Basic net loss per common share | $ | (0.18 | ) | $ | — | $ | (0.51 | ) | $ | (0.21 | ) | ||||
Diluted net loss per common share | $ | (0.18 | ) | $ | — | $ | (0.51 | ) | $ | (0.21 | ) | ||||
Basic weighted average shares outstanding | 38,509 | 37,658 | 38,414 | 37,497 | |||||||||||
Diluted weighted average shares outstanding | 38,509 | 37,658 | 38,414 | 37,497 |
June 30, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 120,512 | $ | 192,633 | |||
Restricted cash | 20,015 | — | |||||
Short-term investments | 48,194 | 14,048 | |||||
Accounts and other receivables, net | 77,366 | 182,527 | |||||
Inventory | 191,657 | 95,129 | |||||
Prepaid expenses and other current assets | 35,380 | 20,999 | |||||
Total current assets | 493,124 | 505,336 | |||||
Long-term restricted cash | 15,100 | 13,768 | |||||
Long-term investments | 7,813 | — | |||||
Property and equipment, net | 30,718 | 30,278 | |||||
Service inventory, net | 1,798 | 1,828 | |||||
Goodwill | 14,182 | 14,182 | |||||
Intangible assets other than goodwill, net | 5,103 | 6,362 | |||||
Deferred tax assets | 27,690 | 19,206 | |||||
Other non-current assets | 10,668 | 12,406 | |||||
TOTAL ASSETS | $ | 606,196 | $ | 603,366 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 75,514 | $ | 34,225 | |||
Accrued payroll and related expenses | 6,816 | 22,470 | |||||
Other accrued liabilities | 8,259 | 22,225 | |||||
Deferred revenue | 102,048 | 91,488 | |||||
Total current liabilities | 192,637 | 170,408 | |||||
Long-term deferred revenue | 47,917 | 50,477 | |||||
Other non-current liabilities | 7,014 | 6,894 | |||||
TOTAL LIABILITIES | 247,568 | 227,779 | |||||
Shareholders’ equity: | |||||||
Preferred stock — Authorized and undesignated, 5,000,000 shares; no shares issued or outstanding | — | — | |||||
Common stock and additional paid-in capital, par value $.01 per share — Authorized, 75,000,000 shares; issued and outstanding 40,902,285 and 40,469,854 shares, respectively | 592,106 | 586,243 | |||||
Accumulated other comprehensive income | (1,283 | ) | 853 | ||||
Accumulated deficit | (232,195 | ) | (211,509 | ) | |||
TOTAL SHAREHOLDERS’ EQUITY | 358,628 | 375,587 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 606,196 | $ | 603,366 |
Three Months Ended June 30, 2014 | ||||||||||||||||||||
Net Loss | Operating Loss | Diluted EPS | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | (6.7 | ) | $ | (13.8 | ) | $ | (0.18 | ) | $ | 29.0 | $ | 42.8 | |||||||
Share-based compensation | (1) | 2.9 | 2.9 | 0.08 | 0.1 | 2.8 | ||||||||||||||
Purchase accounting adjustments | (2) | 0.2 | 0.2 | 0.01 | 0.2 | |||||||||||||||
Amortization of acquired intangibles | (2) | 0.6 | 0.6 | 0.02 | 0.5 | 0.1 | ||||||||||||||
Income tax on reconciling items | (3) | 0.4 | 0.01 | |||||||||||||||||
Other items impacting tax provision | (4) | (6.0 | ) | (0.16 | ) | |||||||||||||||
Total reconciling items | $ | (1.9 | ) | $ | 3.7 | $ | (0.04 | ) | $ | 0.8 | $ | 2.9 | ||||||||
Non-GAAP | $ | (8.6 | ) | $ | (10.1 | ) | $ | (0.22 | ) | $ | 29.8 | $ | 39.9 | |||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||
Net Loss | Operating Loss | Diluted EPS | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | (0.2 | ) | $ | (9.8 | ) | $ | — | $ | 26.8 | $ | 36.6 | ||||||||
Share-based compensation | (1) | 1.6 | 1.6 | 0.04 | 0.1 | 1.5 | ||||||||||||||
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 | ||||||||||||||
Income tax on reconciling items | (3) | 0.2 | 0.01 | |||||||||||||||||
Other items impacting tax provision | (4) | (9.3 | ) | (0.26 | ) | |||||||||||||||
Total reconciling items | $ | (6.8 | ) | $ | 2.3 | $ | (0.19 | ) | $ | 0.7 | $ | 1.6 | ||||||||
Non-GAAP | $ | (7.0 | ) | $ | (7.5 | ) | $ | (0.19 | ) | $ | 27.5 | $ | 35.0 | |||||||
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 |
Three Months Ended June 30, 2014 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 17.8 | 29 | % | $ | 11.2 | 48 | % | $ | 29.0 | 34 | % | |||||||||
Share-based compensation | (1) | — | 0.1 | 0.1 | |||||||||||||||||
Purchase accounting adjustments | (2) | 0.2 | — | 0.2 | |||||||||||||||||
Amortization of acquired intangibles | (2) | 0.5 | — | 0.5 | |||||||||||||||||
Total reconciling items | $ | 0.7 | 1 | % | $ | 0.1 | — | % | $ | 0.8 | 1 | % | |||||||||
Non-GAAP | $ | 18.5 | 30 | % | $ | 11.3 | 48 | % | $ | 29.8 | 35 | % | |||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 14.9 | 24 | % | $ | 11.9 | 54 | % | $ | 26.8 | 32 | % | |||||||||
Share-based compensation | (1) | — | 0.1 | 0.1 | |||||||||||||||||
Purchase accounting adjustments | (2) | 0.1 | — | 0.1 | |||||||||||||||||
Amortization of acquired intangibles | (2) | 0.5 | — | 0.5 | |||||||||||||||||
Total reconciling items | $ | 0.6 | 1 | % | $ | 0.1 | — | % | $ | 0.7 | 1 | % | |||||||||
Non-GAAP | $ | 15.5 | 25 | % | $ | 12.0 | 54 | % | $ | 27.5 | 33 | % | |||||||||
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. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
GAAP Net Loss | $ | (6.7 | ) | $ | (0.2 | ) | $ | (19.7 | ) | $ | (7.8 | ) | ||||
Non-GAAP adjustments impacting gross profit: | ||||||||||||||||
Share-based compensation | (1) | 0.1 | 0.1 | 0.2 | 0.2 | |||||||||||
Purchase accounting adjustments | (2) | 0.2 | 0.1 | 0.3 | 1.1 | |||||||||||
Amortization of acquired and other intangibles | (2) | 0.5 | 0.5 | 1.0 | 1.0 | |||||||||||
Total adjustments impacting gross profit | 0.8 | 0.7 | 1.5 | 2.3 | ||||||||||||
Non-GAAP gross margin percentage | 35 | % | 33 | % | 35 | % | 32 | % | ||||||||
Non-GAAP adjustments impacting operating expenses: | ||||||||||||||||
Share-based compensation | (1) | 2.8 | 1.5 | 5.2 | 3.1 | |||||||||||
Amortization of acquired intangibles | (2) | 0.1 | 0.1 | 0.2 | 0.2 | |||||||||||
Total adjustments impacting operating expenses | 2.9 | 1.6 | 5.4 | 3.3 | ||||||||||||
Non-GAAP adjustments impacting tax provision: | ||||||||||||||||
Income tax on reconciling items | (3) | 0.4 | 0.2 | 0.7 | 0.5 | |||||||||||
Other items impacting tax provision | (4) | (6.0 | ) | (9.3 | ) | (14.2 | ) | (13.7 | ) | |||||||
Total adjustments impacting tax provision | (5.6 | ) | (9.1 | ) | (13.5 | ) | (13.2 | ) | ||||||||
Non-GAAP Net Loss | $ | (8.6 | ) | $ | (7.0 | ) | $ | (26.3 | ) | $ | (15.4 | ) | ||||
Non-GAAP Diluted Net Loss per common share | $ | (0.22 | ) | $ | (0.19 | ) | $ | (0.69 | ) | $ | (0.41 | ) | ||||
Diluted weighted average shares | 38.5 | 37.7 | 38.4 | 37.5 | ||||||||||||
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) 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 |