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 11, 2016 |
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 February 11, 2016 |
Cray Media: | Investors: |
Nick Davis | Paul Hiemstra |
206/701-2123 | 206/701-2044 |
pr@cray.com | ir@cray.com |
• | In January, Cray was awarded a new contract to provide a major upgrade and expansion to the Cray XC supercomputers and Cray Sonexion storage system at the European Centre for Medium-Range Weather Forecasts (ECMWF). Consisting of products and multiple years of service, the contract is valued at more than $36 million and systems are expected to be delivered in 2016. |
• | In November, Cray announced it was awarded a contract to provide a Cray XC40 supercomputer to the University of Warsaw in Poland. The six-cabinet Cray XC40 system is located in the University’s OCEAN research data center, a leading research center for computational and data driven sciences and one of the premier centers for large-scale high performance computing simulations and big data analytics in Central and Eastern Europe. |
• | In November, Cray announced that it will deliver a high performance computing optimized Docker solution for the Cray XC line of supercomputers. Docker containers for Cray XC systems are designed to provide better application portability and bring ease-of-use to running highly-scalable applications on advanced supercomputers. The new feature will also be available for Cray CS400, Cray XE and Cray XK customers later in 2016. |
• | In November, Cray was awarded a contract to provide the Alfred Wegener Institute in Bremerhaven, Germany with a Cray CS400 supercomputer featuring the new Intel Omni-Path Architecture. The system will also feature next-generation Intel Xeon processors, which are the follow-on to the Intel Xeon “Haswell” processors. The contract is valued at more than $3 million and the system is expected to be delivered in 2016. |
• | In November, Cray announced plans to join the OpenHPC Project designed to create a unified community of key stakeholders across the HPC industry. Cray’s participation in OpenHPC is focused on standardizing software stack components, leveraging open-source technologies, and simplifying the maintenance and operation of the software stack for end-users. |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenue: | ||||||||||||||||
Product | $ | 232,924 | $ | 235,524 | $ | 601,294 | $ | 460,748 | ||||||||
Service | 34,547 | 26,419 | 123,395 | 100,858 | ||||||||||||
Total revenue | 267,471 | 261,943 | 724,689 | 561,606 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of product revenue | 160,034 | 157,535 | 426,821 | 321,554 | ||||||||||||
Cost of service revenue | 21,257 | 15,465 | 72,185 | 55,638 | ||||||||||||
Total cost of revenue | 181,291 | 173,000 | 499,006 | 377,192 | ||||||||||||
Gross profit | 86,180 | 88,943 | 225,683 | 184,414 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development, net | 29,281 | 24,735 | 96,563 | 94,048 | ||||||||||||
Sales and marketing | 18,054 | 17,942 | 60,150 | 57,785 | ||||||||||||
General and administrative | 8,662 | 6,839 | 27,966 | 23,381 | ||||||||||||
Total operating expenses | 55,997 | 49,516 | 184,679 | 175,214 | ||||||||||||
Income from operations | 30,183 | 39,427 | 41,004 | 9,200 | ||||||||||||
Other income (expense), net | 31 | 1,075 | 365 | (9 | ) | |||||||||||
Interest income, net | 294 | 289 | 1,408 | 506 | ||||||||||||
Income before income taxes | 30,508 | 40,791 | 42,777 | 9,697 | ||||||||||||
Income tax (expense) benefit | (10,213 | ) | 33,847 | (15,240 | ) | 52,626 | ||||||||||
Net income | $ | 20,295 | $ | 74,638 | $ | 27,537 | $ | 62,323 | ||||||||
Basic net income per common share | $ | 0.51 | $ | 1.92 | $ | 0.70 | $ | 1.61 | ||||||||
Diluted net income per common share | $ | 0.50 | $ | 1.84 | $ | 0.68 | $ | 1.54 | ||||||||
Basic weighted average shares outstanding | 39,532 | 38,918 | 39,257 | 38,634 | ||||||||||||
Diluted weighted average shares outstanding | 40,993 | 40,572 | 40,691 | 40,435 |
December 31, 2015 | December 31, 2014 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 266,660 | $ | 112,633 | ||||
Restricted cash | 1,651 | 16,874 | ||||||
Short-term investments | 14,925 | 16,289 | ||||||
Accounts and other receivables, net | 124,719 | 165,113 | ||||||
Inventory | 113,655 | 143,632 | ||||||
Deferred tax assets, net | 38,628 | 36,073 | ||||||
Prepaid expenses and other current assets | 21,048 | 17,948 | ||||||
Total current assets | 581,286 | 508,562 | ||||||
Long-term restricted cash | 1,655 | — | ||||||
Long-term investment in sales-type lease, net | 18,317 | 31,089 | ||||||
Property and equipment, net | 31,079 | 34,793 | ||||||
Service spares, net | 3,090 | 1,868 | ||||||
Goodwill | 14,182 | 14,182 | ||||||
Intangible assets other than goodwill, net | 2,525 | 3,895 | ||||||
Deferred tax assets, net | 26,016 | 41,414 | ||||||
Other non-current assets | 16,025 | 15,631 | ||||||
TOTAL ASSETS | $ | 694,175 | $ | 651,434 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 27,837 | $ | 48,699 | ||||
Accrued payroll and related expenses | 27,452 | 16,054 | ||||||
Other accrued liabilities | 24,079 | 16,285 | ||||||
Deferred revenue | 86,731 | 65,910 | ||||||
Total current liabilities | 166,099 | 146,948 | ||||||
Long-term deferred revenue | 33,306 | 47,588 | ||||||
Other non-current liabilities | 2,260 | 3,044 | ||||||
TOTAL LIABILITIES | 201,665 | 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 40,693,707 and 40,822,377 shares, respectively | 610,279 | 598,390 | ||||||
Accumulated other comprehensive income | 7,642 | 6,503 | ||||||
Accumulated deficit | (125,411 | ) | (151,039 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 492,510 | 453,854 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 694,175 | $ | 651,434 |
Three Months Ended December 31, 2015 | ||||||||||||||||||||
Net Income | Operating Income | Diluted EPS | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | 20.3 | $ | 30.2 | $ | 0.50 | $ | 86.2 | $ | 56.0 | ||||||||||
Share-based compensation | (1) | 2.8 | 2.8 | 0.2 | 2.6 | |||||||||||||||
Purchase accounting adjustments | (2) | 0.1 | 0.1 | 0.1 | ||||||||||||||||
Amortization of acquired intangibles | (2) | 0.5 | 0.5 | 0.3 | 0.2 | |||||||||||||||
Items impacting tax provision | (4) | 8.5 | ||||||||||||||||||
Total reconciling items | $ | 11.9 | $ | 3.4 | $ | 0.29 | $ | 0.6 | $ | 2.8 | ||||||||||
Non-GAAP | $ | 32.2 | $ | 33.6 | $ | 0.79 | $ | 86.8 | $ | 53.2 | ||||||||||
Three Months Ended December 31, 2014 | ||||||||||||||||||||
Net Income | Operating Income | Diluted EPS | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | 74.6 | $ | 39.4 | $ | 1.84 | $ | 88.9 | $ | 49.5 | ||||||||||
Share-based compensation | (1) | 2.8 | 2.8 | 0.1 | 2.7 | |||||||||||||||
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) | 0.1 | 0.1 | 0.1 | ||||||||||||||||
Items impacting tax provision | (4) | (38.1 | ) | |||||||||||||||||
Total reconciling items | $ | (34.3 | ) | $ | 3.8 | $ | (0.85 | ) | $ | 1.0 | $ | 2.8 | ||||||||
Non-GAAP | $ | 40.3 | $ | 43.2 | $ | 0.99 | $ | 89.9 | $ | 46.7 | ||||||||||
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 |
Twelve Months Ended December 31, 2015 | ||||||||||||||||||||
Net Income | Operating Income | Diluted EPS | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | 27.5 | $ | 41.0 | $ | 0.68 | $ | 225.7 | $ | 184.7 | ||||||||||
Share-based compensation | (1) | 11.4 | 11.4 | 0.6 | 10.8 | |||||||||||||||
Purchase accounting adjustments | (2) | 0.5 | 0.5 | 0.5 | ||||||||||||||||
Amortization of acquired intangibles | (2) | 2.4 | 2.4 | 1.8 | 0.6 | |||||||||||||||
Items impacting tax provision | (4) | 11.2 | ||||||||||||||||||
Total reconciling items | $ | 25.5 | $ | 14.3 | $ | 0.62 | $ | 2.9 | $ | 11.4 | ||||||||||
Non-GAAP | $ | 53.0 | $ | 55.3 | $ | 1.30 | $ | 228.6 | $ | 173.3 | ||||||||||
Twelve Months Ended December 31, 2014 | ||||||||||||||||||||
Net Income | Operating Income | Diluted EPS | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | 62.3 | $ | 9.2 | $ | 1.54 | $ | 184.4 | $ | 175.2 | ||||||||||
Share-based compensation | (1) | 10.4 | 10.4 | 0.5 | 9.9 | |||||||||||||||
Purchase accounting adjustments | (2) | 0.9 | 0.9 | 0.9 | ||||||||||||||||
Amortization of acquired intangibles | (2) | 2.6 | 2.6 | 2.2 | 0.4 | |||||||||||||||
Severance costs | (3) | 1.9 | 1.9 | 0.7 | 1.2 | |||||||||||||||
Items impacting tax provision | (4) | (53.8 | ) | |||||||||||||||||
Total reconciling items | $ | (38.0 | ) | $ | 15.8 | $ | (0.94 | ) | $ | 4.3 | $ | 11.5 | ||||||||
Non-GAAP | $ | 24.3 | $ | 25.0 | $ | 0.60 | $ | 188.7 | $ | 163.7 | ||||||||||
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 December 31, 2015 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 72.9 | 31 | % | $ | 13.3 | 38 | % | $ | 86.2 | 32 | % | |||||||||
Share-based compensation | (1) | 0.1 | 0.1 | 0.2 | |||||||||||||||||
Purchase accounting adjustments | (2) | 0.1 | 0.1 | ||||||||||||||||||
Amortization of acquired intangibles | (2) | 0.3 | 0.3 | ||||||||||||||||||
Total reconciling items | $ | 0.5 | 1 | % | $ | 0.1 | 1 | % | $ | 0.6 | — | % | |||||||||
Non-GAAP | $ | 73.4 | 32 | % | $ | 13.4 | 39 | % | $ | 86.8 | 32 | % | |||||||||
Three Months Ended December 31, 2014 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 78.0 | 33 | % | $ | 10.9 | 41 | % | $ | 88.9 | 34 | % | |||||||||
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) | 0.1 | 0.1 | ||||||||||||||||||
Total reconciling items | $ | 0.8 | — | % | $ | 0.2 | 1 | % | $ | 1.0 | — | % | |||||||||
Non-GAAP | $ | 78.8 | 33 | % | $ | 11.1 | 42 | % | $ | 89.9 | 34 | % | |||||||||
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 |
Twelve Months Ended December 31, 2015 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 174.5 | 29 | % | $ | 51.2 | 42 | % | $ | 225.7 | 31 | % | |||||||||
Share-based compensation | (1) | 0.3 | 0.3 | 0.6 | |||||||||||||||||
Purchase accounting adjustments | (2) | 0.5 | 0.5 | ||||||||||||||||||
Amortization of acquired intangibles | (2) | 1.8 | 1.8 | ||||||||||||||||||
Total reconciling items | $ | 2.6 | — | % | $ | 0.3 | — | % | $ | 2.9 | 1 | % | |||||||||
Non-GAAP | $ | 177.1 | 29 | % | $ | 51.5 | 42 | % | $ | 228.6 | 32 | % | |||||||||
Twelve Months Ended December 31, 2014 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 139.2 | 30 | % | $ | 45.2 | 45 | % | $ | 184.4 | 33 | % | |||||||||
Share-based compensation | (1) | 0.2 | 0.3 | 0.5 | |||||||||||||||||
Purchase accounting adjustments | (2) | 0.9 | 0.9 | ||||||||||||||||||
Amortization of acquired intangibles | (2) | 2.2 | 2.2 | ||||||||||||||||||
Severance costs | (3) | 0.7 | 0.7 | ||||||||||||||||||
Total reconciling items | $ | 3.3 | 1 | % | $ | 1.0 | 1 | % | $ | 4.3 | 1 | % | |||||||||
Non-GAAP | $ | 142.5 | 31 | % | $ | 46.2 | 46 | % | $ | 188.7 | 34 | % | |||||||||
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 December 31, | Twelve Months Ended December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP Net Income | $ | 20.3 | $ | 74.6 | $ | 27.5 | $ | 62.3 | ||||||||
Non-GAAP adjustments impacting gross profit: | ||||||||||||||||
Share-based compensation | (1) | 0.2 | 0.1 | 0.6 | 0.5 | |||||||||||
Purchase accounting adjustments | (2) | 0.1 | 0.3 | 0.5 | 0.9 | |||||||||||
Amortization of acquired and other intangibles | (2) | 0.3 | 0.5 | 1.8 | 2.2 | |||||||||||
Severance costs | (3) | — | 0.1 | — | 0.7 | |||||||||||
Total adjustments impacting gross profit | 0.6 | 1.0 | 2.9 | 4.3 | ||||||||||||
Non-GAAP gross margin percentage | 32 | % | 34 | % | 32 | % | 34 | % | ||||||||
Non-GAAP adjustments impacting operating expenses: | ||||||||||||||||
Share-based compensation | (1) | 2.6 | 2.7 | 10.8 | 9.9 | |||||||||||
Amortization of acquired intangibles | (2) | 0.2 | 0.1 | 0.6 | 0.4 | |||||||||||
Severance costs | (3) | — | — | — | 1.2 | |||||||||||
Total adjustments impacting operating expenses | 2.8 | 2.8 | 11.4 | 11.5 | ||||||||||||
Items impacting tax provision | (4) | 8.5 | (38.1 | ) | 11.2 | (53.8 | ) | |||||||||
Non-GAAP Net Income | $ | 32.2 | $ | 40.3 | $ | 53.0 | $ | 24.3 | ||||||||
Non-GAAP Diluted Net Income per common share | $ | 0.79 | $ | 0.99 | $ | 1.30 | $ | 0.60 | ||||||||
Diluted weighted average shares | 41.0 | 40.6 | 40.7 | 40.4 | ||||||||||||
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 | ||||||||||||||||
(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 |