Cray Announces Selected Preliminary 2014 Financial Results

SEATTLE, WA--(Marketwired - Jan 9, 2015) - Global supercomputer leader Cray Inc. (NASDAQ: CRAY) today announced selected preliminary 2014 financial results. The 2014 anticipated results presented in this release are based on preliminary financial data and are subject to change until the year-end financial reporting process is complete.

Based on preliminary results, total revenue for 2014 is expected to be about $560 million. Based on these results, the Company expects to be solidly profitable on both a GAAP and non-GAAP basis for 2014.

The Company is evaluating the potential release of all or a portion of the reserve held against its remaining U.S. Federal deferred tax assets, which if made would likely result in a significant tax benefit for 2014 for GAAP accounting purposes.

"We had a solid year and expect record revenue again in 2014 as we continue to deliver year over year growth," said Peter Ungaro, president and CEO of Cray. "While we did not complete all of the system acceptances necessary to achieve our 2014 guidance, we now expect a strong 2015 to be even stronger, as that revenue will carry over and add to 2015. With an incredible year of new contracts signed in 2014, we are building momentum in the market today across all of our product lines and we anticipate significant growth in revenue and profitability in 2015. As we look further out, we are in excellent shape to continue to capitalize on the ongoing convergence of supercomputing and big data."

For 2015, while a wide range of results remains possible, based on our current expectations for 2014, we anticipate revenue for the year to be in the range of $715 million. Revenue is expected to ramp quarterly during 2015, with about $80 million in the first quarter and roughly 40-45% of the total year in the fourth quarter. Non-GAAP gross margin for 2015 is expected to be about 35%. Total non-GAAP operating expenses for the year are anticipated to be about $195 million. Based on this outlook, we expect to improve our GAAP and non-GAAP operating profit margin significantly for 2015.

The Company's 2015 effective non-GAAP tax rate is expected to be about 10%.

Actual results for any future period are subject to large fluctuations given the nature of Cray's business.

Upcoming Event
Cray will be attending the upcoming 17th Annual Needham Growth Conference at the New York Palace Hotel in New York City. The Cray presentation will be held on Tuesday, Jan. 13, at 8:40 a.m. EST.