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 October 29, 2015 |
Cray Inc. | ||
By: | /s/ MICHAEL C. PIRAINO | |
Michael C. Piraino Senior Vice President Administration, General Counsel and Corporate Secretary |
Exhibit No. | Description |
99.1 | Press Release of Cray Inc., dated October 29, 2015 |
Cray Media: | Investors: |
Nick Davis | Paul Hiemstra |
206/701-2123 | 206/701-2044 |
pr@cray.com | ir@cray.com |
• | In October, a new performance benchmark was achieved using the Cray CS-Storm cluster supercomputer and Stone Ridge Technology's ECHELON reservoir simulation software. By leveraging Cray's unique architecture scaling across multiple GPUs in the Cray CS-Storm, ECHELON is one of the most productive reservoir simulators currently on the market. |
• | In October, Cray announced the creation of the Cray Europe, Middle East and Africa (EMEA) Research Lab based out of Cray's EMEA headquarters in Bristol, England. The Cray EMEA Research Lab will foster the development of deep technical collaborations with key customers and partners, and will serve as the focal point for the Company's technical engagements with the European HPC ecosystem. |
• | In September, Cray was awarded a contract to provide a Cray XC40 supercomputer to the Yukawa Institute for Theoretical Physics (YITP) at Kyoto University in Japan. The two-cabinet Cray XC40 system is expected to be delivered in 2015 and will provide the YITP user community with a supercomputer that occupies one-fourth of the physical footprint of the Institute's previous system and a 4x improvement in overall compute performance. |
• | During the third quarter, a growing list of the world's leading meteorological centers continued to run their complex, data-intensive climate and weather models on Cray supercomputers. The Swiss National Supercomputing Centre installed a Cray CS-Storm cluster supercomputer to power its operational numerical weather forecasts. In Denmark, the Danish Meteorological Institute (DMI) selected a Cray XC supercomputer and a Cray Sonexion 2000 storage system. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenue: | ||||||||||||||||
Product | $ | 157,692 | $ | 133,461 | $ | 368,370 | $ | 225,224 | ||||||||
Service | 33,721 | 25,945 | 88,848 | 74,439 | ||||||||||||
Total revenue | 191,413 | 159,406 | 457,218 | 299,663 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of product revenue | 105,242 | 96,080 | 266,787 | 164,019 | ||||||||||||
Cost of service revenue | 20,289 | 14,796 | 50,928 | 40,173 | ||||||||||||
Total cost of revenue | 125,531 | 110,876 | 317,715 | 204,192 | ||||||||||||
Gross profit | 65,882 | 48,530 | 139,503 | 95,471 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development, net | 24,989 | 22,503 | 67,282 | 69,313 | ||||||||||||
Sales and marketing | 16,132 | 14,808 | 42,096 | 39,843 | ||||||||||||
General and administrative | 6,729 | 5,813 | 19,304 | 16,542 | ||||||||||||
Total operating expenses | 47,850 | 43,124 | 128,682 | 125,698 | ||||||||||||
Income (loss) from operations | 18,032 | 5,406 | 10,821 | (30,227 | ) | |||||||||||
Other income (expense), net | (152 | ) | (101 | ) | 334 | (1,084 | ) | |||||||||
Interest income, net | 337 | 72 | 1,114 | 217 | ||||||||||||
Income (loss) before income taxes | 18,217 | 5,377 | 12,269 | (31,094 | ) | |||||||||||
Income tax (expense) benefit | (7,362 | ) | 1,994 | (5,027 | ) | 18,779 | ||||||||||
Net income (loss) | $ | 10,855 | $ | 7,371 | $ | 7,242 | $ | (12,315 | ) | |||||||
Basic net income (loss) per common share | $ | 0.28 | $ | 0.19 | $ | 0.18 | $ | (0.32 | ) | |||||||
Diluted net income (loss) per common share | $ | 0.27 | $ | 0.18 | $ | 0.18 | $ | (0.32 | ) | |||||||
Basic weighted average shares outstanding | 39,382 | 38,783 | 39,164 | 38,538 | ||||||||||||
Diluted weighted average shares outstanding | 40,322 | 40,276 | 40,589 | 38,538 |
September 30, 2015 | December 31, 2014 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 190,089 | $ | 112,633 | |||
Restricted cash | 1,636 | 16,874 | |||||
Short-term investments | 14,346 | 16,289 | |||||
Accounts and other receivables, net | 143,412 | 165,113 | |||||
Inventory | 229,942 | 143,632 | |||||
Deferred tax asset | 31,429 | 36,073 | |||||
Prepaid expenses and other current assets | 22,326 | 17,948 | |||||
Total current assets | 633,180 | 508,562 | |||||
Long-term investments | 663 | — | |||||
Long-term investment in sales-type lease, net | 22,534 | 31,089 | |||||
Property and equipment, net | 32,107 | 34,793 | |||||
Service spares, net | 2,650 | 1,868 | |||||
Goodwill | 14,182 | 14,182 | |||||
Intangible assets other than goodwill, net | 2,990 | 3,895 | |||||
Deferred tax assets | 42,279 | 41,414 | |||||
Other non-current assets | 17,556 | 15,631 | |||||
TOTAL ASSETS | $ | 768,141 | $ | 651,434 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 70,172 | $ | 48,699 | |||
Accrued payroll and related expenses | 15,608 | 16,054 | |||||
Other accrued liabilities | 16,433 | 16,285 | |||||
Deferred revenue | 159,775 | 65,910 | |||||
Total current liabilities | 261,988 | 146,948 | |||||
Long-term deferred revenue | 35,527 | 47,588 | |||||
Other non-current liabilities | 2,309 | 3,044 | |||||
TOTAL LIABILITIES | 299,824 | 197,580 | |||||
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 40,618,865 and 40,822,377 shares, respectively | 606,181 | 598,390 | |||||
Accumulated other comprehensive income | 7,716 | 6,503 | |||||
Accumulated deficit | (145,580 | ) | (151,039 | ) | |||
TOTAL SHAREHOLDERS’ EQUITY | 468,317 | 453,854 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 768,141 | $ | 651,434 |
Three Months Ended September 30, 2015 | ||||||||||||||||||||
Net Income | Operating Income | Diluted EPS | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | 10.9 | $ | 18.0 | $ | 0.27 | $ | 65.9 | $ | 47.9 | ||||||||||
Share-based compensation | (1) | 2.7 | 2.7 | 0.1 | 2.6 | |||||||||||||||
Purchase accounting adjustments | (2) | 0.1 | 0.1 | 0.1 | ||||||||||||||||
Amortization of acquired intangibles | (2) | 0.7 | 0.7 | 0.5 | 0.2 | |||||||||||||||
Items impacting tax provision | (4) | 5.1 | ||||||||||||||||||
Total reconciling items | $ | 8.6 | $ | 3.5 | $ | 0.21 | $ | 0.7 | $ | 2.8 | ||||||||||
Non-GAAP | $ | 19.5 | $ | 21.5 | $ | 0.48 | $ | 66.6 | $ | 45.1 | ||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Net Income | Operating Income | Diluted EPS | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | 7.4 | $ | 5.4 | $ | 0.18 | $ | 48.5 | $ | 43.1 | ||||||||||
Share-based compensation | (1) | 2.1 | 2.1 | 0.1 | 2.0 | |||||||||||||||
Purchase accounting adjustments | (2) | 0.3 | 0.3 | 0.3 | ||||||||||||||||
Amortization of acquired intangibles | (2) | 0.6 | 0.6 | 0.5 | 0.1 | |||||||||||||||
Severance costs | (3) | 1.8 | 1.8 | 0.6 | 1.2 | |||||||||||||||
Items impacting tax provision | (4) | (2.2 | ) | |||||||||||||||||
Total reconciling items | $ | 2.6 | $ | 4.8 | $ | 0.07 | $ | 1.5 | $ | 3.3 | ||||||||||
Non-GAAP | $ | 10.0 | $ | 10.2 | $ | 0.25 | $ | 50.0 | $ | 39.8 | ||||||||||
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 | ||||||||||||||||||||
(3) Adjustments to exclude non-recurring severance costs | ||||||||||||||||||||
(4) Adjustments associated with the tax impact on reconciling items, benefits related to Cray’s net operating loss carryforwards and changes in Cray’s valuation allowance held against deferred tax assets |
Nine Months Ended September 30, 2015 | ||||||||||||||||||||
Net Income | Operating Income | Diluted EPS | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | 7.2 | $ | 10.8 | $ | 0.18 | $ | 139.5 | $ | 128.7 | ||||||||||
Share-based compensation | (1) | 8.6 | 8.6 | 0.4 | 8.2 | |||||||||||||||
Purchase accounting adjustments | (2) | 0.4 | 0.4 | 0.4 | ||||||||||||||||
Amortization of acquired intangibles | (2) | 1.9 | 1.9 | 1.5 | 0.4 | |||||||||||||||
Items impacting tax provision | (4) | 2.7 | ||||||||||||||||||
Total reconciling items | $ | 13.6 | $ | 10.9 | $ | 0.33 | $ | 2.3 | $ | 8.6 | ||||||||||
Non-GAAP | $ | 20.8 | $ | 21.7 | $ | 0.51 | $ | 141.8 | $ | 120.1 | ||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Net Loss | Operating Loss | Diluted EPS | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | (12.3 | ) | $ | (30.2 | ) | $ | (0.32 | ) | $ | 95.5 | $ | 125.7 | |||||||
Share-based compensation | (1) | 7.6 | 7.6 | 0.4 | 7.2 | |||||||||||||||
Purchase accounting adjustments | (2) | 0.6 | 0.6 | 0.6 | ||||||||||||||||
Amortization of acquired intangibles | (2) | 1.8 | 1.8 | 1.5 | 0.3 | |||||||||||||||
Severance costs | (3) | 1.8 | 1.8 | 0.6 | 1.2 | |||||||||||||||
Items impacting tax provision | (4) | (15.7 | ) | |||||||||||||||||
Total reconciling items | $ | (3.9 | ) | $ | 11.8 | $ | (0.10 | ) | $ | 3.1 | $ | 8.7 | ||||||||
Non-GAAP | $ | (16.2 | ) | $ | (18.4 | ) | $ | (0.42 | ) | $ | 98.6 | $ | 117.0 | |||||||
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 | ||||||||||||||||||||
(3) Adjustments to exclude non-recurring severance costs | ||||||||||||||||||||
(4) Adjustments associated with the tax impact on reconciling items, benefits related to Cray’s net operating loss carryforwards and changes in Cray’s valuation allowance held against deferred tax assets |
Three Months Ended September 30, 2015 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 52.5 | 33 | % | $ | 13.4 | 40 | % | $ | 65.9 | 34 | % | |||||||||
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 | $ | 53.1 | 34 | % | $ | 13.5 | 40 | % | $ | 66.6 | 35 | % | |||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 37.4 | 28 | % | $ | 11.1 | 43 | % | $ | 48.5 | 30 | % | |||||||||
Share-based compensation | (1) | 0.1 | 0.1 | ||||||||||||||||||
Purchase accounting adjustments | (2) | 0.3 | 0.3 | ||||||||||||||||||
Amortization of acquired intangibles | (2) | 0.5 | 0.5 | ||||||||||||||||||
Severance costs | (3) | 0.6 | 0.6 | ||||||||||||||||||
Total reconciling items | $ | 0.8 | 1 | % | $ | 0.7 | 3 | % | $ | 1.5 | 1 | % | |||||||||
Non-GAAP | $ | 38.2 | 29 | % | $ | 11.8 | 46 | % | $ | 50.0 | 31 | % | |||||||||
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 | |||||||||||||||||||||
(3) Adjustments to exclude non-recurring severance costs |
Nine Months Ended September 30, 2015 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 101.6 | 28 | % | $ | 37.9 | 43 | % | $ | 139.5 | 31 | % | |||||||||
Share-based compensation | (1) | 0.2 | 0.2 | 0.4 | |||||||||||||||||
Purchase accounting adjustments | (2) | 0.4 | 0.4 | ||||||||||||||||||
Amortization of acquired intangibles | (2) | 1.5 | 1.5 | ||||||||||||||||||
Total reconciling items | $ | 2.1 | — | % | $ | 0.2 | — | % | $ | 2.3 | — | % | |||||||||
Non-GAAP | $ | 103.7 | 28 | % | $ | 38.1 | 43 | % | $ | 141.8 | 31 | % | |||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 61.2 | 27 | % | $ | 34.3 | 46 | % | $ | 95.5 | 32 | % | |||||||||
Share-based compensation | (1) | 0.2 | 0.2 | 0.4 | |||||||||||||||||
Purchase accounting adjustments | (2) | 0.6 | 0.6 | ||||||||||||||||||
Amortization of acquired intangibles | (2) | 1.5 | 1.5 | ||||||||||||||||||
Severance costs | (3) | 0.6 | 0.6 | ||||||||||||||||||
Total reconciling items | $ | 2.3 | 1 | % | $ | 0.8 | 1 | % | $ | 3.1 | 1 | % | |||||||||
Non-GAAP | $ | 63.5 | 28 | % | $ | 35.1 | 47 | % | $ | 98.6 | 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 | |||||||||||||||||||||
(3) Adjustments to exclude non-recurring severance costs |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP Net Income (Loss) | $ | 10.9 | $ | 7.4 | $ | 7.2 | $ | (12.3 | ) | |||||||
Non-GAAP adjustments impacting gross profit: | ||||||||||||||||
Share-based compensation | (1) | 0.1 | 0.1 | 0.4 | 0.4 | |||||||||||
Purchase accounting adjustments | (2) | 0.1 | 0.3 | 0.4 | 0.6 | |||||||||||
Amortization of acquired and other intangibles | (2) | 0.5 | 0.5 | 1.5 | 1.5 | |||||||||||
Severance costs | (3) | — | 0.6 | — | 0.6 | |||||||||||
Total adjustments impacting gross profit | 0.7 | 1.5 | 2.3 | 3.1 | ||||||||||||
Non-GAAP gross margin percentage | 35 | % | 31 | % | 31 | % | 33 | % | ||||||||
Non-GAAP adjustments impacting operating expenses: | ||||||||||||||||
Share-based compensation | (1) | 2.6 | 2.0 | 8.2 | 7.2 | |||||||||||
Amortization of acquired intangibles | (2) | 0.2 | 0.1 | 0.4 | 0.3 | |||||||||||
Severance costs | (3) | — | 1.2 | — | 1.2 | |||||||||||
Total adjustments impacting operating expenses | 2.8 | 3.3 | 8.6 | 8.7 | ||||||||||||
Items impacting tax provision | (4) | 5.1 | (2.2 | ) | 2.7 | (15.7 | ) | |||||||||
Non-GAAP Net Income (Loss) | $ | 19.5 | $ | 10.0 | $ | 20.8 | $ | (16.2 | ) | |||||||
Non-GAAP Diluted Net Income (Loss) per common share | $ | 0.48 | $ | 0.25 | $ | 0.51 | $ | (0.42 | ) | |||||||
Diluted weighted average shares | 40.3 | 40.3 | 40.6 | 38.5 | ||||||||||||
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 | ||||||||||||||||
(3) Adjustments to exclude non-recurring severance costs | ||||||||||||||||
(4) Adjustments associated with the tax impact on reconciling items, benefits related to Cray’s net operating loss carryforwards and changes in Cray’s valuation allowance held against deferred tax assets |