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 8, 2017 |
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 8, 2017 |
Cray Media: | Investors: |
Nick Davis | Paul Hiemstra |
206/701-2123 | 206/701-2044 |
pr@cray.com | ir@cray.com |
• | In November, Cray launched its latest generation supercomputer, the Cray XC50, the company’s fastest supercomputer ever with a peak performance of one petaflop in a single cabinet. Among the many enhancements of the XC50, this new system adds support for the Nvidia Tesla P100 GPU accelerator as well as for next-generation Intel Xeon and Intel Xeon Phi processors. |
• | In January, Cray appointed Stathis Papaefstathiou to the position of senior vice president of R&D. With more than 30 years of high tech experience, Papaefstathiou has held senior-level positions at Aerohive Networks, F5 Networks, and Microsoft. |
• | In December, Cray announced the results of a deep learning collaboration between Cray, Microsoft, and the Swiss National Supercomputing Centre (CSCS) that expands the horizons of running deep learning algorithms at scale using the power of Cray supercomputers. Cray has validated and made available several deep learning toolkits on Cray XC and Cray CS-Storm systems to simplify the transition to running deep learning workloads at scale. |
• | In November, Cray highlighted recent momentum for the Urika-GX agile analytics platform and previewed ongoing software updates to the system. New customers include a manufacturing collaborative and a customer engagement marketing solution provider, both looking to harness the Urika-GX to deliver enhanced value to their customers. |
• | In November, Cray announced it had joined iEnergy the rapidly growing exploration and production industry community brokered by Halliburton Landmark. iEnergy community members can now choose to run Landmark SeisSpace Seismic Processing Software on a Cray CS400 cluster supercomputer. |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenue: | ||||||||||||||||
Product | $ | 311,408 | $ | 232,924 | $ | 499,432 | $ | 601,294 | ||||||||
Service | 35,166 | 34,547 | 130,377 | 123,395 | ||||||||||||
Total revenue | 346,574 | 267,471 | 629,809 | 724,689 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of product revenue | 206,827 | 160,034 | 332,016 | 426,821 | ||||||||||||
Cost of service revenue | 19,256 | 21,257 | 77,578 | 72,185 | ||||||||||||
Total cost of revenue | 226,083 | 181,291 | 409,594 | 499,006 | ||||||||||||
Gross profit | 120,491 | 86,180 | 220,215 | 225,683 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development, net | 29,807 | 29,281 | 112,130 | 96,563 | ||||||||||||
Sales and marketing | 18,502 | 18,054 | 64,893 | 60,150 | ||||||||||||
General and administrative | 9,728 | 8,662 | 34,053 | 27,966 | ||||||||||||
Total operating expenses | 58,037 | 55,997 | 211,076 | 184,679 | ||||||||||||
Income from operations | 62,454 | 30,183 | 9,139 | 41,004 | ||||||||||||
Other income (expense), net | (196 | ) | 31 | (1,365 | ) | 365 | ||||||||||
Interest income, net | 493 | 294 | 2,147 | 1,408 | ||||||||||||
Income before income taxes | 62,751 | 30,508 | 9,921 | 42,777 | ||||||||||||
Income tax (expense) benefit | (10,976 | ) | (10,213 | ) | 694 | (15,240 | ) | |||||||||
Net income | $ | 51,775 | $ | 20,295 | $ | 10,615 | $ | 27,537 | ||||||||
Basic net income per common share | $ | 1.30 | $ | 0.51 | $ | 0.27 | $ | 0.70 | ||||||||
Diluted net income per common share | $ | 1.27 | $ | 0.50 | $ | 0.26 | $ | 0.68 | ||||||||
Basic weighted average shares outstanding | 39,974 | 39,532 | 39,833 | 39,257 | ||||||||||||
Diluted weighted average shares outstanding | 40,816 | 40,993 | 41,012 | 40,691 |
December 31, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 222,962 | $ | 266,660 | |||
Restricted cash | — | 1,651 | |||||
Short-term investments | — | 14,925 | |||||
Accounts and other receivables, net | 197,941 | 124,719 | |||||
Inventory | 88,254 | 113,655 | |||||
Deferred tax assets | 19,117 | 38,628 | |||||
Prepaid expenses and other current assets | 20,006 | 21,048 | |||||
Total current assets | 548,280 | 581,286 | |||||
Long-term restricted cash | 1,655 | 1,655 | |||||
Long-term investment in sales-type lease, net | 31,050 | 18,317 | |||||
Property and equipment, net | 30,620 | 31,079 | |||||
Service spares, net | 3,023 | 3,090 | |||||
Goodwill | 14,182 | 14,182 | |||||
Intangible assets other than goodwill, net | 1,637 | 2,525 | |||||
Deferred tax assets | 66,496 | 26,016 | |||||
Other non-current assets | 17,629 | 16,025 | |||||
TOTAL ASSETS | $ | 714,572 | $ | 694,175 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 45,504 | $ | 27,837 | |||
Accrued payroll and related expenses | 17,199 | 27,452 | |||||
Other accrued liabilities | 10,303 | 24,079 | |||||
Deferred revenue | 83,129 | 86,731 | |||||
Total current liabilities | 156,135 | 166,099 | |||||
Long-term deferred revenue | 27,258 | 33,306 | |||||
Other non-current liabilities | 5,703 | 2,260 | |||||
TOTAL LIABILITIES | 189,096 | 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 40,757,458 and 40,693,707 shares, respectively | 622,604 | 610,279 | |||||
Accumulated other comprehensive income | 2,782 | 7,642 | |||||
Accumulated deficit | (99,910 | ) | (125,411 | ) | |||
TOTAL SHAREHOLDERS’ EQUITY | 525,476 | 492,510 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 714,572 | $ | 694,175 |
Three Months Ended December 31, 2016 | ||||||||||||||||||||
Net Income | Diluted EPS | Operating Income | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | 51.8 | $ | 1.27 | $ | 62.5 | $ | 120.5 | $ | 58.0 | ||||||||||
Share-based compensation | (1) | 2.8 | 2.8 | 0.1 | 2.7 | |||||||||||||||
Amortization of acquired and other intangibles | (2) | 0.2 | 0.2 | 0.2 | ||||||||||||||||
Items impacting tax provision | (3) | 1.5 | ||||||||||||||||||
Total reconciling items | 4.5 | 0.11 | 3.0 | 0.1 | 2.9 | |||||||||||||||
Non-GAAP | $ | 56.3 | $ | 1.38 | $ | 65.5 | $ | 120.6 | $ | 55.1 | ||||||||||
Three Months Ended December 31, 2015 | ||||||||||||||||||||
Net Income | Diluted EPS | Operating Income | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | 20.3 | $ | 0.50 | $ | 30.2 | $ | 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 and other intangibles | (2) | 0.5 | 0.5 | 0.3 | 0.2 | |||||||||||||||
Items impacting tax provision | (3) | 8.5 | ||||||||||||||||||
Total reconciling items | 11.9 | 0.29 | 3.4 | 0.6 | 2.8 | |||||||||||||||
Non-GAAP | $ | 32.2 | $ | 0.79 | $ | 33.6 | $ | 86.8 | $ | 53.2 | ||||||||||
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 |
Year Ended December 31, 2016 | ||||||||||||||||||||
Net Income | Diluted EPS | Operating Income | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | 10.6 | $ | 0.26 | $ | 9.1 | $ | 220.2 | $ | 211.1 | ||||||||||
Share-based compensation | (1) | 11.2 | 11.2 | 0.5 | 10.7 | |||||||||||||||
Purchase accounting adjustments | (2) | 0.1 | 0.1 | 0.1 | ||||||||||||||||
Amortization of acquired and other intangibles | (2) | 0.7 | 0.7 | 0.7 | ||||||||||||||||
Items impacting tax provision | (3) | (2.7 | ) | |||||||||||||||||
Total reconciling items | 9.3 | 0.23 | 12.0 | 0.6 | 11.4 | |||||||||||||||
Non-GAAP | $ | 19.9 | $ | 0.49 | $ | 21.1 | $ | 220.8 | $ | 199.7 | ||||||||||
Year Ended December 31, 2015 | ||||||||||||||||||||
Net Income | Diluted EPS | Operating Income | Gross Profit | Operating Expenses | ||||||||||||||||
GAAP | $ | 27.5 | $ | 0.68 | $ | 41.0 | $ | 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 and other intangibles | (2) | 2.4 | 2.4 | 1.8 | 0.6 | |||||||||||||||
Items impacting tax provision | (3) | 11.2 | ||||||||||||||||||
Total reconciling items | 25.5 | 0.62 | 14.3 | 2.9 | 11.4 | |||||||||||||||
Non-GAAP | $ | 53.0 | $ | 1.30 | $ | 55.3 | $ | 228.6 | $ | 173.3 | ||||||||||
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 |
Three Months Ended December 31, 2016 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 104.6 | 34 | % | $ | 15.9 | 45 | % | $ | 120.5 | 35 | % | |||||||||
Share-based compensation | (1) | 0.1 | — | 0.1 | |||||||||||||||||
Total reconciling items | 0.1 | — | % | — | — | % | 0.1 | — | % | ||||||||||||
Non-GAAP | $ | 104.7 | 34 | % | $ | 15.9 | 45 | % | $ | 120.6 | 35 | % | |||||||||
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 and other 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 | % | |||||||||
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 |
Year Ended December 31, 2016 | |||||||||||||||||||||
Product | Service | Total | |||||||||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||||||||||
GAAP | $ | 167.4 | 34 | % | $ | 52.8 | 40 | % | $ | 220.2 | 35 | % | |||||||||
Share-based compensation | (1) | 0.3 | 0.2 | 0.5 | |||||||||||||||||
Purchase accounting adjustments | (2) | 0.1 | 0.1 | ||||||||||||||||||
Total reconciling items | 0.4 | — | % | 0.2 | 1 | % | 0.6 | — | % | ||||||||||||
Non-GAAP | $ | 167.8 | 34 | % | $ | 53.0 | 41 | % | $ | 220.8 | 35 | % | |||||||||
Year 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 and other 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 | % | |||||||||
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 December 31, | Twelve Months Ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
GAAP Net Income | $ | 51.8 | $ | 20.3 | $ | 10.6 | $ | 27.5 | ||||||||
Non-GAAP adjustments impacting gross profit: | ||||||||||||||||
Share-based compensation | (1) | 0.1 | 0.2 | 0.5 | 0.6 | |||||||||||
Purchase accounting adjustments | (2) | — | 0.1 | 0.1 | 0.5 | |||||||||||
Amortization of acquired and other intangibles | (2) | — | 0.3 | — | 1.8 | |||||||||||
Total adjustments impacting gross profit | 0.1 | 0.6 | 0.6 | 2.9 | ||||||||||||
Non-GAAP gross margin percentage | 35 | % | 32 | % | 35 | % | 32 | % | ||||||||
Non-GAAP adjustments impacting operating expenses: | ||||||||||||||||
Share-based compensation | (1) | 2.7 | 2.6 | 10.7 | 10.8 | |||||||||||
Amortization of acquired and other intangibles | (2) | 0.2 | 0.2 | 0.7 | 0.6 | |||||||||||
Total adjustments impacting operating expenses | 2.9 | 2.8 | 11.4 | 11.4 | ||||||||||||
Items impacting tax provision | (3) | 1.5 | 8.5 | (2.7 | ) | 11.2 | ||||||||||
Non-GAAP Net Income | $ | 56.3 | $ | 32.2 | $ | 19.9 | $ | 53.0 | ||||||||
Non-GAAP Diluted Net Income per common share | $ | 1.38 | $ | 0.79 | $ | 0.49 | $ | 1.30 | ||||||||
Diluted weighted average shares | 40.8 | 41.0 | 41.0 | 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 |