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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0001181431-10-055994.txt : 20101116
<SEC-HEADER>0001181431-10-055994.hdr.sgml : 20101116
<ACCEPTANCE-DATETIME>20101116172143
ACCESSION NUMBER:		0001181431-10-055994
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20101115
FILED AS OF DATE:		20101116
DATE AS OF CHANGE:		20101116

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			WILLIAMS MARGARET ANN
		CENTRAL INDEX KEY:			0001325486

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26820
		FILM NUMBER:		101197440

	MAIL ADDRESS:	
		STREET 1:		411 FIRST AVENUE SOUTH, SUITE 600
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98104

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:		901 FIFTH AVENUE
		STREET 2:		SUITE 1000
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98164
		BUSINESS PHONE:		2067012000

	MAIL ADDRESS:	
		STREET 1:		901 FIFTH AVENUE
		STREET 2:		SUITE 1000
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98164

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TERA COMPUTER CO \WA\
		DATE OF NAME CHANGE:	19950809
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd290946.xml
<DESCRIPTION>WILLIAMS_FORM 4_11-15-10
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2010-11-15</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

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

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001325486</rptOwnerCik>
            <rptOwnerName>WILLIAMS MARGARET ANN</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>901 FIFTH AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 1000</rptOwnerStreet2>
            <rptOwnerCity>SEATTLE</rptOwnerCity>
            <rptOwnerState>WA</rptOwnerState>
            <rptOwnerZipCode>98164</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Senior Vice President, R&amp;D</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2010-11-15</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>6907</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>6.1812</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>231069</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Shares reported represent an amount sold pursuant to a Rule 10b5-1 sales plan to cover the tax liabilities relating to the vesting of restricted stock of the reporting person on November 15, 2010.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>By Michael C. Piraino, Attorney-in-Fact for Margaret A. Williams</signatureName>
        <signatureDate>2010-11-16</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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