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Primeur weekly 2017-11-06

Quantum computing

Researchers develop data bus for quantum computer ...

Focus on Europe

Luxembourg 25th country to join PRACE ...

European Commission to invest 30 billion euro in new solutions for societal challenges and breakthrough innovation ...

Middleware

3i partners with DDN Storage to deliver demanding microscopy workflow solutions and unmatched performance ...

A third of the Internet is under attack ...

University of Nevada Las Vegas selects winning combination of Bright Cluster Manager and Advanced HPC ...

Hardware

Cray reports third quarter 2017 financial results ...

Asetek announces OEM partnership with E4 Computer Engineering and installation at CINECA in Italy ...

Asetek announces NEC Corporation as new data centre OEM partner ...

NVIDIA announces new AI partners, courses, initiatives to deliver deep learning training worldwide ...

Canadian Minister Qualtrough unveils new supercomputers to help forecast Canada's weather ...

KAUST IT receives iCMG Enterprise Architecture Award ...

Pawsey's Zeus expands to fulfil researchers' needs ...

NCI supercharges Raijin, Australia's fastest supercomputer ...

Supermicro showcases deep learning optimized systems ...

Applications

Sherlock deploys UC's first HIPAA-compliant Hadoop based data management system ...

Yu Liu appointed assistant professor of electrical & computer engineering at Clarkson University ...

Cutting datasets down to size ...

University of Delaware professor wins IEEE award ...

A bit of a 'quantum magic trick' ...

From quantum physicist to quantum CEO ...

High-performance computing methods focus of new text ...

Students explore immigration through a Big Data lens ...

Bright Computing announces reseller agreement with HPE for high performance computing and AI ...

The Cloud

IBM brings Cloud-native environment to private Clouds ...

IBM expands Watson Data Platform to help unleash AI for professionals ...

UberCloud brings parallel MPI to Univa Grid Engine's Docker support ...

Huawei acquires a seat in the Kubernetes Steering Committee ...

Red Hat improves IT flexibility and reduces complexity with Linux containers in latest version of production-ready OpenStack platform ...

Cray reports third quarter 2017 financial results

30 Oct 2017 Seattle - Cray Inc. has issued financial results for its third quarter ended September 30, 2017. All figures are based on U.S. GAAP unless otherwise noted. Revenue for the third quarter of 2017 was $79.7 million, compared to $77.5 million in the third quarter of 2016. Net loss for the third quarter of 2017 was $10.2 million, or $0.25 per diluted share, compared to a net loss of $23.0 million, or $0.58 per diluted share in the third quarter of 2016. Non-GAAP net loss was $13.3 million, or $0.33 per diluted share for the third quarter of 2017, compared to non-GAAP net loss of $19.5 million, or $0.49 per diluted share for the same period of 2016.

Overall gross profit margin on a GAAP and non-GAAP basis for the third quarter of 2017 was 36%. Overall gross profit margin on a GAAP and non-GAAP basis for the third quarter of 2016 was 30% and 31%, respectively.

Operating expenses for the third quarter of 2017 were $54.7 million, compared to $52.1 million for the third quarter of 2016. Non-GAAP operating expenses for the third quarter of 2017 were $43.9 million, compared to $49.3 million for the third quarter of 2016. GAAP operating expenses for the third quarter of 2017 included $7.7 million in restructuring charges associated with our recent workforce reduction.

As of September 30, 2017, cash, investments and restricted cash totaled $183 million. Working capital at the end of the third quarter was $337 million, compared to $342 million at the end of the second quarter.

"The third quarter was highlighted by several exciting customer wins and strategic developments", stated Peter Ungaro, president and CEO of Cray. "We completed our recently announced strategic transaction with Seagate to broaden our storage portfolio and deepen our presence in the storage market. In supercomputing, our CS500 cluster was selected by KISTI, a leading research institution in South Korea. And just last week we announced that we are partnering with Microsoft to deliver an integrated Cloud services offering which will allow customers unique access to our high-performance supercomputers in the Microsoft Azure Cloud - expanding our reach to new customers through the cloud and adding a complementary offering to our product set. While a slow-down in our primary target market has continued, I remain positive about our recent activity levels, win rates, and development efforts and I'm excited about our long-term prospects to drive growth."

A wide range of results remains possible for 2017. Several acceptances are planned for completion late in the fourth quarter, some of which will be challenging. Assuming Cray is able to complete these acceptances before year-end, Cray expects revenue for 2017 to be in the range of $400 million. GAAP and non-GAAP gross margins for the year are expected to be in the low- to mid-30% range. Non-GAAP operating expenses for 2017 are expected to be in the range of $180 million. For 2017, GAAP operating expenses are anticipated to be about $21 million higher than non-GAAP operating expenses, driven by share-based compensation, restructuring, and costs related to the Seagate transaction.

While a wide range of results remains possible and it is still early in the planning process, Cray expects 2018 annual revenue to grow in the range of 10% compared to Cray's current 2017 outlook. Revenue is expected to be about $75 million in the first quarter of 2018.

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

Recent highlights include the following:

  • In October, Cray partnered with Microsoft to offer dedicated Cray supercomputing systems in the Microsoft Azure Cloud, enabling customers to run AI, advanced analytics, and modelling and simulation workloads at unprecedented scale.
  • In September, Cray has completed the previously announced transaction and strategic partnership with Seagate centred around the addition of the ClusterStor high-performance storage business.
  • In September, the Korea Institute of Science and Technology Information has awarded Cray with a contract valued at more than $48 million for a Cray CS500 cluster supercomputer. The new system, which includes Intel Xeon Scalable processors and Intel Xeon Phi processors, will be the largest supercomputer in South Korea, providing support for universities, research institutes, and industries.
  • In September, Yokohama City University in Japan installed a Cray XC50-AC supercomputer. Located in the University's Advanced Medical Research Center, the new Cray supercomputer will power various research including computational drug-discovery research used in the design of new medicines.
  • In September, Japan Advanced Institute for Science and Technology put a Cray XC40 supercomputer into production to serve as the Institute's primary supercomputing resource.
  • In September, Cray signed a solutions provider agreement with Vanguard Infrastructures in order for Vanguard to develop, market, and sell on premise and Cloud-as-a-Service cybersecurity solutions that fuse supercomputing technologies with an open, enterprise-ready software framework for Big Data analytics.
  • In August, Cray delivered a Cray CS400 cluster supercomputer to Embry-Riddle Aeronautical University in Florida. The system will power collaborative applied research with industry partners at the University's new research facility.
  • In October, Martin Homlish stepped down from the Cray Board of Directors, effective October 31st, 2017, due to the growing demand for his time at his new company.
Source: Cray

Back to Table of contents

Primeur weekly 2017-11-06

Quantum computing

Researchers develop data bus for quantum computer ...

Focus on Europe

Luxembourg 25th country to join PRACE ...

European Commission to invest 30 billion euro in new solutions for societal challenges and breakthrough innovation ...

Middleware

3i partners with DDN Storage to deliver demanding microscopy workflow solutions and unmatched performance ...

A third of the Internet is under attack ...

University of Nevada Las Vegas selects winning combination of Bright Cluster Manager and Advanced HPC ...

Hardware

Cray reports third quarter 2017 financial results ...

Asetek announces OEM partnership with E4 Computer Engineering and installation at CINECA in Italy ...

Asetek announces NEC Corporation as new data centre OEM partner ...

NVIDIA announces new AI partners, courses, initiatives to deliver deep learning training worldwide ...

Canadian Minister Qualtrough unveils new supercomputers to help forecast Canada's weather ...

KAUST IT receives iCMG Enterprise Architecture Award ...

Pawsey's Zeus expands to fulfil researchers' needs ...

NCI supercharges Raijin, Australia's fastest supercomputer ...

Supermicro showcases deep learning optimized systems ...

Applications

Sherlock deploys UC's first HIPAA-compliant Hadoop based data management system ...

Yu Liu appointed assistant professor of electrical & computer engineering at Clarkson University ...

Cutting datasets down to size ...

University of Delaware professor wins IEEE award ...

A bit of a 'quantum magic trick' ...

From quantum physicist to quantum CEO ...

High-performance computing methods focus of new text ...

Students explore immigration through a Big Data lens ...

Bright Computing announces reseller agreement with HPE for high performance computing and AI ...

The Cloud

IBM brings Cloud-native environment to private Clouds ...

IBM expands Watson Data Platform to help unleash AI for professionals ...

UberCloud brings parallel MPI to Univa Grid Engine's Docker support ...

Huawei acquires a seat in the Kubernetes Steering Committee ...

Red Hat improves IT flexibility and reduces complexity with Linux containers in latest version of production-ready OpenStack platform ...