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 August 2, 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 August 2, 2016 |
Cray Media: | Investors: |
Nick Davis | Paul Hiemstra |
206/701-2123 | 206/701-2044 |
pr@cray.com | ir@cray.com |
• | In July, Cray and Deloitte Advisory Cyber Risk Services introduced the first commercially available high-speed, supercomputing threat analytics service, Cyber Reconnaissance and Analytics. The subscription-based offering, which is powered by the Cray Urika-GX and is currently in production, is designed to help organizations effectively discover, understand and take action to defend against cyber adversaries. |
• | In May, Cray launched the Urika-GX system, the first agile analytics platform that fuses supercomputing technologies with an open, enterprise-ready software framework for big data analytics. The Broad Institute of MIT and Harvard, one of the world’s leading life sciences research centers, is currently using the Urika-GX system for analyzing high-throughput genome sequencing data. |
• | In June, Cray announced that the US Department of Energy's Argonne Leadership Computing Facility at Argonne National Laboratory selected a Urika-GX system to perform research in the areas of life science, material science, and machine learning, as well as to support the 2016 ALCF Data Science Program. |
• | In June, Cray announced that the Academic Center for Computing and Media Studies at Kyoto University in Japan awarded the Company with a contract for a Cray XC40 supercomputer, featuring the Cray DataWarp technology, as well as a Cray CS400 cluster supercomputer. The 5.4 petaflop XC40 system will also include the new Intel Xeon Phi processors, formerly codenamed “Knights Landing”. |
• | The Centre for Modelling & Simulation (CFMS) in Bristol, UK recently purchased a CS400 cluster supercomputer. The Centre is supported by a consortium of commercial manufacturing companies, including Airbus, BAE Systems, Rolls Royce, MBDA, and Williams F1. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenue: | ||||||||||||||||
Product | $ | 68,929 | $ | 157,937 | $ | 140,339 | $ | 210,678 | ||||||||
Service | 31,306 | 28,224 | 65,445 | 55,127 | ||||||||||||
Total revenue | 100,235 | 186,161 | 205,784 | 265,805 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of product revenue | 45,459 | 120,789 | 91,637 | 161,545 | ||||||||||||
Cost of service revenue | 18,615 | 15,787 | 38,024 | 30,639 | ||||||||||||
Total cost of revenue | 64,074 | 136,576 | 129,661 | 192,184 | ||||||||||||
Gross profit | 36,161 | 49,585 | 76,123 | 73,621 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development, net | 27,399 | 20,106 | 53,239 | 42,293 | ||||||||||||
Sales and marketing | 15,380 | 13,412 | 31,381 | 25,964 | ||||||||||||
General and administrative | 9,019 | 6,435 | 16,357 | 12,575 | ||||||||||||
Total operating expenses | 51,798 | 39,953 | 100,977 | 80,832 | ||||||||||||
Income (loss) from operations | (15,637 | ) | 9,632 | (24,854 | ) | (7,211 | ) | |||||||||
Other income (expense), net | (421 | ) | (258 | ) | (857 | ) | 486 | |||||||||
Interest income, net | 526 | 413 | 1,110 | 777 | ||||||||||||
Income (loss) before income taxes | (15,532 | ) | 9,787 | (24,601 | ) | (5,948 | ) | |||||||||
Income tax benefit (expense) | 2,406 | (4,006 | ) | 6,462 | 2,335 | |||||||||||
Net income (loss) | $ | (13,126 | ) | $ | 5,781 | $ | (18,139 | ) | $ | (3,613 | ) | |||||
Basic net income (loss) per common share | $ | (0.33 | ) | $ | 0.15 | $ | (0.46 | ) | $ | (0.09 | ) | |||||
Diluted net income (loss) per common share | $ | (0.33 | ) | $ | 0.14 | $ | (0.46 | ) | $ | (0.09 | ) | |||||
Basic weighted average shares outstanding | 39,768 | 39,104 | 39,710 | 39,053 | ||||||||||||
Diluted weighted average shares outstanding | 39,768 | 40,759 | 39,710 | 39,053 |
June 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 212,745 | $ | 266,660 | |||
Restricted cash | — | 1,651 | |||||
Short-term investments | 9,318 | 14,925 | |||||
Accounts and other receivables, net | 55,613 | 124,719 | |||||
Inventory | 196,809 | 113,655 | |||||
Deferred tax assets | 44,529 | 38,628 | |||||
Prepaid expenses and other current assets | 32,469 | 21,048 | |||||
Total current assets | 551,483 | 581,286 | |||||
Long-term restricted cash | 1,655 | 1,655 | |||||
Long-term investment in sales-type lease, net | 37,189 | 18,317 | |||||
Property and equipment, net | 29,519 | 31,079 | |||||
Service spares, net | 2,777 | 3,090 | |||||
Goodwill | 14,182 | 14,182 | |||||
Intangible assets other than goodwill, net | 2,067 | 2,525 | |||||
Deferred tax assets | 42,458 | 26,016 | |||||
Other non-current assets | 14,864 | 16,025 | |||||
TOTAL ASSETS | $ | 696,194 | $ | 694,175 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 71,997 | $ | 27,837 | |||
Accrued payroll and related expenses | 11,209 | 27,452 | |||||
Other accrued liabilities | 7,748 | 24,079 | |||||
Deferred revenue | 79,691 | 86,731 | |||||
Total current liabilities | 170,645 | 166,099 | |||||
Long-term deferred revenue | 22,539 | 33,306 | |||||
Other non-current liabilities | 3,399 | 2,260 | |||||
TOTAL LIABILITIES | 196,583 | 201,665 | |||||
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 40,781,152 and 40,693,707 shares, respectively | 617,599 | 610,279 | |||||
Accumulated other comprehensive income | 9,658 | 7,642 | |||||
Accumulated deficit | (127,646 | ) | (125,411 | ) | |||
TOTAL SHAREHOLDERS’ EQUITY | 499,611 | 492,510 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 696,194 | $ | 694,175 |
Three Months Ended June 30, 2016 | ||||||||||||||||||||
Net Loss | Diluted EPS | Operating Loss | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | (13.1 | ) | $ | (0.33 | ) | $ | (15.6 | ) | $ | 36.2 | $ | 51.8 | |||||||
Share-based compensation | (1) | 2.8 | 2.8 | 0.2 | 2.6 | |||||||||||||||
Amortization of acquired and other intangibles | (2) | 0.2 | 0.2 | 0.2 | ||||||||||||||||
Items impacting tax provision | (3) | (1.3 | ) | |||||||||||||||||
Total reconciling items | 1.7 | 0.04 | 3.0 | 0.2 | 2.8 | |||||||||||||||
Non-GAAP | $ | (11.4 | ) | $ | (0.29 | ) | $ | (12.6 | ) | $ | 36.4 | $ | 49.0 | |||||||
Three Months Ended June 30, 2015 | ||||||||||||||||||||
Net Income | Diluted EPS | Operating Income | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | 5.8 | $ | 0.14 | $ | 9.6 | $ | 49.6 | $ | 40.0 | ||||||||||
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 and other intangibles | (2) | 0.6 | 0.6 | 0.5 | 0.1 | |||||||||||||||
Items impacting tax provision | (3) | 3.1 | ||||||||||||||||||
Total reconciling items | 6.6 | 0.16 | 3.5 | 0.8 | 2.7 | |||||||||||||||
Non-GAAP | $ | 12.4 | $ | 0.30 | $ | 13.1 | $ | 50.4 | $ | 37.3 | ||||||||||
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 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 |
Six Months Ended June 30, 2016 | ||||||||||||||||||||
Net Loss | Diluted EPS | Operating Loss | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | (18.1 | ) | $ | (0.46 | ) | $ | (24.9 | ) | $ | 76.1 | $ | 101.0 | |||||||
Share-based compensation | (1) | 5.6 | 5.6 | 0.3 | 5.3 | |||||||||||||||
Purchase accounting adjustments | (2) | 0.1 | 0.1 | 0.1 | ||||||||||||||||
Amortization of acquired and other intangibles | (2) | 0.4 | 0.4 | 0.4 | ||||||||||||||||
Items impacting tax provision | (3) | (4.8 | ) | |||||||||||||||||
Total reconciling items | 1.3 | 0.04 | 6.1 | 0.4 | 5.7 | |||||||||||||||
Non-GAAP | $ | (16.8 | ) | $ | (0.42 | ) | $ | (18.8 | ) | $ | 76.5 | $ | 95.3 | |||||||
Six Months Ended June 30, 2015 | ||||||||||||||||||||
Net Income (Loss) | Diluted EPS | Operating Income (Loss) | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | (3.6 | ) | $ | (0.09 | ) | $ | (7.2 | ) | $ | 73.6 | $ | 80.8 | |||||||
Share-based compensation | (1) | 5.9 | 5.9 | 0.3 | 5.6 | |||||||||||||||
Purchase accounting adjustments | (2) | 0.3 | 0.3 | 0.3 | ||||||||||||||||
Amortization of acquired and other intangibles | (2) | 1.2 | 1.2 | 1.0 | 0.2 | |||||||||||||||
Items impacting tax provision | (3) | (2.4 | ) | |||||||||||||||||
Total reconciling items | 5.0 | 0.13 | 7.4 | 1.6 | 5.8 | |||||||||||||||
Non-GAAP | $ | 1.4 | $ | 0.04 | $ | 0.2 | $ | 75.2 | $ | 75.0 | ||||||||||
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 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 June 30, 2016 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 23.5 | 34 | % | $ | 12.7 | 41 | % | $ | 36.2 | 36 | % | |||||||||
Share-based compensation | (1) | 0.1 | 0.1 | 0.2 | |||||||||||||||||
Total reconciling items | 0.1 | — | % | 0.1 | — | % | 0.2 | — | % | ||||||||||||
Non-GAAP | $ | 23.6 | 34 | % | $ | 12.8 | 41 | % | $ | 36.4 | 36 | % | |||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 37.1 | 24 | % | $ | 12.5 | 44 | % | $ | 49.6 | 27 | % | |||||||||
Share-based compensation | (1) | 0.1 | 0.1 | 0.2 | |||||||||||||||||
Purchase accounting adjustments | (2) | 0.1 | 0.1 | ||||||||||||||||||
Amortization of acquired and other intangibles | (2) | 0.5 | 0.5 | ||||||||||||||||||
Total reconciling items | 0.7 | — | % | 0.1 | 1 | % | 0.8 | — | % | ||||||||||||
Non-GAAP | $ | 37.8 | 24 | % | $ | 12.6 | 45 | % | $ | 50.4 | 27 | % | |||||||||
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 |
Six Months Ended June 30, 2016 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 48.7 | 35 | % | $ | 27.4 | 42 | % | $ | 76.1 | 37 | % | |||||||||
Share-based compensation | (1) | 0.2 | 0.1 | 0.3 | |||||||||||||||||
Purchase accounting adjustments | (2) | 0.1 | 0.1 | ||||||||||||||||||
Total reconciling items | 0.3 | — | % | 0.1 | — | % | 0.4 | — | % | ||||||||||||
Non-GAAP | $ | 49.0 | 35 | % | $ | 27.5 | 42 | % | $ | 76.5 | 37 | % | |||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 49.1 | 23 | % | $ | 24.5 | 44 | % | $ | 73.6 | 28 | % | |||||||||
Share-based compensation | (1) | 0.2 | 0.1 | 0.3 | |||||||||||||||||
Purchase accounting adjustments | (2) | 0.3 | 0.3 | ||||||||||||||||||
Amortization of acquired and other intangibles | (2) | 1.0 | 1.0 | ||||||||||||||||||
Total reconciling items | 1.5 | 1 | % | 0.1 | 1 | % | 1.6 | — | % | ||||||||||||
Non-GAAP | $ | 50.6 | 24 | % | $ | 24.6 | 45 | % | $ | 75.2 | 28 | % | |||||||||
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 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
GAAP Net Income (Loss) | $ | (13.1 | ) | $ | 5.8 | $ | (18.1 | ) | $ | (3.6 | ) | |||||
Non-GAAP adjustments impacting gross profit: | ||||||||||||||||
Share-based compensation | (1) | 0.2 | 0.2 | 0.3 | 0.3 | |||||||||||
Purchase accounting adjustments | (2) | — | 0.1 | 0.1 | 0.3 | |||||||||||
Amortization of acquired and other intangibles | (2) | — | 0.5 | — | 1.0 | |||||||||||
Total adjustments impacting gross profit | 0.2 | 0.8 | 0.4 | 1.6 | ||||||||||||
Non-GAAP gross margin percentage | 36 | % | 27 | % | 37 | % | 28 | % | ||||||||
Non-GAAP adjustments impacting operating expenses: | ||||||||||||||||
Share-based compensation | (1) | 2.6 | 2.6 | 5.3 | 5.6 | |||||||||||
Amortization of acquired and other intangibles | (2) | 0.2 | 0.1 | 0.4 | 0.2 | |||||||||||
Total adjustments impacting operating expenses | 2.8 | 2.7 | 5.7 | 5.8 | ||||||||||||
Items impacting tax provision | (3) | (1.3 | ) | 3.1 | (4.8 | ) | (2.4 | ) | ||||||||
Non-GAAP Net Income (Loss) | $ | (11.4 | ) | $ | 12.4 | $ | (16.8 | ) | $ | 1.4 | ||||||
Non-GAAP Diluted Net Income (Loss) per common share | $ | (0.29 | ) | $ | 0.30 | $ | (0.42 | ) | $ | 0.04 | ||||||
Diluted weighted average shares | (4) | 39.8 | 40.8 | 39.7 | 40.7 | |||||||||||
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 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 | ||||||||||||||||
(4) Cray recorded a GAAP net loss for the six months ended June 30, 2015 and non-GAAP net income for the same period. As such, the diluted weighted average shares number on the Reconciliation of GAAP to non-GAAP Net Income (Loss) differs from the amount on Cray's Condensed Consolidated Statement of Operations by the weighted average number of potential common shares outstanding, including the additional dilution related to conversion of stock options, unvested restricted stock and unvested restricted stock units as computed under the treasury stock method |