Cray Inc. Announces First Quarter Results
12 May 2000
Cray Inc. Announces First Quarter Results
SEATTLE--May 12, 2000--Cray Inc. , a global leader in supercomputer systems, today reported results for the first quarter 2000. These results do not reflect the recent acquisition of the Cray Research business assets, which will be included in the second quarter 2000 results. Cray will hold an investor teleconference at 9:00 a.m. PST / 12:00 p.m. EST today to discuss the results and company progress (details are provided below).For the first quarter ended March 31, 2000, Cray Inc. reported a net loss of $8.0 million, or ($0.27) per share on revenues of $43,000, compared to a net loss of $6.8 million, or ($0.47) per share on revenues of $661,000 for the first quarter of 1999.
The company's cash position increased from $10.0 million at December 31, 1999, to $35.2 million at March 31, 2000, including $5.0 million held as a deposit for the $15 million cash component of the Cray Research acquisition. The increase reflected a successful private placement of common stock in the first quarter that raised $24.3 million after expenses and approximately $9.0 million received from warrant exercises.
"The results for the first quarter 2000 close the chapter for the company as a development stage entity," said Jim Rottsolk, president and chief executive officer. "With the Cray acquisition complete, we will be reporting on activities and sales across our full range of commercially available supercomputing products such as the Cray SV1 and T3E, as well as achieving benchmarks leading to the commercialization of the MTA and SV2 supercomputers. With the world's foremost supercomputing technology, R&D, manufacturing, sales and service capabilities, we are focused on delivering our customers the best technology and product solutions to meet their most demanding computational needs."
"There is a tremendous amount of customer excitement surrounding Cray's products," Rottsolk added. "Our recently announced $18.5 million contract from the Army for Cray T3E-1200 technology is evidence of that excitement and confidence in the new Cray. In addition, the company's internal excitement and confidence is reaching new heights. Besides retaining nearly all Cray employees, we have seen a resurgence of interest from former employees who wish to return to the newly independent Cray Inc. We are rapidly building the new Cray from a position of strength and leadership. I look forward to reporting on our continued success in the future."
Conference Call
Management will discuss both the results and company progress and hold a question and answer session for callers today, May 12th, 2000, at 9:00 a.m. Pacific / 12:00 p.m. Eastern. To participate, call 415-247-8503 a few minutes before 9:00 a.m. Pacific / 12:00 p.m. Eastern (no passcode required). If you are unable to participate, a replay will be available from 11:00 a.m. Pacific on May 12 until May14 at 5:00 p.m. Pacific. To access, please dial 1-800-633-8284, reservation number 15195313. In addition, the replay will be available for 90 days via the Internet at www.vcall.com.
CRAY INC.
CONDENSED BALANCE SHEETS
December 31, March 31,
1999 2000
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(unaudited)
ASSETS
Cash and cash equivalents $10,069,355 $30,187,972
Restricted cash 1,131,583 1,042,078
Accounts receivable 641,316 658,456
Inventory 4,513,013 4,482,710
Deposit to SGI 5,000,000
Property and equipment, net 5,828,712 7,158,322
Other assets 1,226,497 1,816,193
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TOTAL $23,410,476 $50,345,731
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 7,691,677 $ 8,143,035
Non-current liabilities 1,411,982 1,286,661
Shareholders' equity 14,306,817 40,916,035
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TOTAL $23,410,476 $50,345,731
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CRAY INC.
STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
March 31,
1999 2000
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REVENUE $ 660,593 $ 42,978
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OPERATING EXPENSES:
Cost of sales 620,839 26,250
Manufacturing costs and
inventory adjustments 2,395,745 2,002,644
Research and development 3,033,333 4,482,844
Marketing and sales 632,479 767,733
General and administrative 465,058 1,100,621
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7,147,454 8,380,092
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Loss from operations (6,486,861) (8,337,114)
OTHER INCOME / (EXPENSE) (324,406) 332,234
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NET LOSS (6,811,267) (8,004,880)
PREFERRED STOCK DIVIDEND (70,057)
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LOSS FOR COMMON STOCK $(6,881,324) $ (8,004,880)
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LOSS PER COMMON SHARE,
BASIC AND DILUTED $ (0.47) $ (0.27)
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WEIGHTED AVERAGE SHARES
OUTSTANDING, BASIC AND
DILUTED 14,625,703 29,595,622
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