SEC Filings

10-Q
CRAY INC filed this Form 10-Q on 10/30/2018
Entire Document
 


calculation of basic or diluted net loss per share. For the three and nine months ended September 30, 2018 and 2017, potential gross common shares of 3.2 million were antidilutive and not included in computing diluted EPS. An additional 0.5 million and 0.6 million performance vesting restricted stock and performance vesting restricted stock units were excluded from the computation of potential common shares for the three and nine months ended September 30, 2018 and 2017, respectively, because the conditions for vesting had not been met as of the balance sheet date.
Note 6— Investments
The Company’s investments in debt securities with maturities at purchase greater than three months are classified as “available-for-sale.” Changes in fair value are reflected in other comprehensive loss. The Company had no investments in available-for-sale securities as of September 30, 2018. The carrying amounts of the Company’s investments in available-for-sale securities as of December 31, 2017 are shown in the table below (in thousands):
 
 
 
 
 Unrealized Loss
 
 
 
 
 Cost
 
 
 Fair Value
Short-term available-for-sale securities
 
$
7,007

 
$
(10
)
 
$
6,997

Note 7— Accounts and Other Receivables, Net
Net accounts and other receivables consisted of the following (in thousands):
 
 
September 30,
2018
 
December 31, 2017
Trade accounts receivable
 
$
46,132

 
$
131,151

Current contract assets
 
3,801

 
9,321

Advance billings
 
5,208

 
3,569

Short-term investment in sales-type lease
 
12,642

 
10,684

Other receivables
 
7,203

 
7,337

 
 
74,986

 
162,062

Allowance for doubtful accounts
 
(25
)
 
(28
)
Accounts and other receivables, net
 
$
74,961

 
$
162,034

Contract assets represent amounts where the Company has recognized revenue in advance of the contractual billing terms. Advance billings represent billings made based on contractual terms for which revenue has not been recognized.
As of September 30, 2018 and December 31, 2017, accounts receivable included $24.6 million and $45.3 million, respectively, that resulted from sales to the U.S. government and system acquisitions primarily funded by the U.S. government (“U.S. Government”). Of these amounts, $1.1 million and $2.1 million were unbilled and included in contract assets as of September 30, 2018 and December 31, 2017, respectively, based upon contractual billing arrangements with these customers. As of September 30, 2018, one non-U.S. Government customer accounted for 17% of total accounts and other receivables. As of December 31, 2017, two non-U.S. Government customers accounted for 38% of total accounts and other receivables.
Note 8— Sales-type Lease
The Company has a sales-type lease with one non-U.S. Government customer, under which it will receive quarterly payments over the term of the lease, which expires in September 2020. The lease is denominated in British Pounds and the Company has entered into certain foreign currency exchange contracts that act as an economic hedge for the foreign currency exposure associated with this arrangement.

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