-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 EtFb2EB+vjng7lRVK541rbtUdIMdSShXDC8kfXbJ1bUAlkxYuOUoXL9UinsmH8iS
 CfgPCoIaLzgjBZpa59/MFQ==

<SEC-DOCUMENT>0001179110-04-003512.txt : 20040213
<SEC-HEADER>0001179110-04-003512.hdr.sgml : 20040213
<ACCEPTANCE-DATETIME>20040213183756
ACCESSION NUMBER:		0001179110-04-003512
CONFORMED SUBMISSION TYPE:	5
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20031231
FILED AS OF DATE:		20040213

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CRAY INC
		CENTRAL INDEX KEY:			0000949158
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPUTERS [3571]
		IRS NUMBER:				930962605
		STATE OF INCORPORATION:			WA
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		411 FIRST AVE SOUTH
		STREET 2:		SUITE 600
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98104-2860
		BUSINESS PHONE:		2067012000

	MAIL ADDRESS:	
		STREET 1:		411 FIRST AVE SOUTH
		STREET 2:		SUITE 600
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98104-2860

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TERA COMPUTER CO \WA\
		DATE OF NAME CHANGE:	19950809

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			ROTTSOLK JAMES E
		CENTRAL INDEX KEY:			0001008042

	FILING VALUES:
		FORM TYPE:		5
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26820
		FILM NUMBER:		04601461

	BUSINESS ADDRESS:	
		STREET 1:		2815 EASTLAKE AVE EAST
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98102-3027
		BUSINESS PHONE:		2063250800

	MAIL ADDRESS:	
		STREET 1:		2815 EASTLAKE AVE E
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98102-3027
</SEC-HEADER>
<DOCUMENT>
<TYPE>5
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 5 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0201</schemaVersion>

    <documentType>5</documentType>

    <periodOfReport>2003-12-31</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <form3HoldingsReported>0</form3HoldingsReported>

    <form4TransactionsReported>0</form4TransactionsReported>

    <issuer>
        <issuerCik>0000949158</issuerCik>
        <issuerName>CRAY INC</issuerName>
        <issuerTradingSymbol>CRAY</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001008042</rptOwnerCik>
            <rptOwnerName>ROTTSOLK JAMES E</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>411 FIRST AVENUE S</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 600</rptOwnerStreet2>
            <rptOwnerCity>SEATTLE</rptOwnerCity>
            <rptOwnerState>WA</rptOwnerState>
            <rptOwnerZipCode>98104-2860</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>CHAIRMAN, PRESIDENT &amp; CEO</officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <transactionDate>
                <value>2003-12-31</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>5</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>2219</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>9.93</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>136194</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By 401(k) plan</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>7196</value>
                    <footnoteId id="F2"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">Prior to 12/31/03, the reporting person acquired a total of 2,219 shares of Cray common stock under the Cray 401(k) plan through Company matching contributions of common stock.  The information in this report is based on a plan statement as of January 15, 2004.  These transactions were exempt from the reporting requirements under Section 16(a) pursuant to Rule 16-a3(f)(1)(i)(B).</footnote>
        <footnote id="F2">Reporting person disclaims beneficial ownership to these shares as to which he has voting and dispositive powers as custodian for six minor children under the Washington Uniform Gift to Minors Act.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>JAMES E ROTTSOLK BY KENNETH W JOHNSON, ATTORNEY-IN-FACT</signatureName>
        <signatureDate>2004-02-13</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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