SEC Filings

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


The following table presents revenues and gross margins for the Company’s operating segments for the three and nine months ended September 30, 2018 and 2017 (in thousands):
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2018
 
2017
 
2018
 
2017
Revenue:
 
 
 
 
 
 
 
 
Supercomputing
 
$
72,615

 
$
47,918

 
$
230,252

 
$
142,933

Storage and Data Management
 
12,263

 
11,046

 
45,977

 
42,335

Maintenance and Support
 
33,349

 
31,701

 
100,477

 
92,483

Engineering Services and Other
 
7,918

 
20,736

 
16,364

 
40,598

Elimination of inter-segment revenue
 
(33,349
)
 
(31,701
)
 
(100,477
)
 
(92,483
)
Total revenue
 
$
92,796

 
$
79,700

 
$
292,593

 
$
225,866

 
 
 
 
 
 
 
 
 
Gross Profit:
 
 
 
 
 
 
 
 
Supercomputing
 
$
18,163

 
$
18,807

 
$
65,335

 
$
50,630

Storage and Data Management
 
5,192

 
3,345

 
17,541

 
15,564

Maintenance and Support
 
15,024

 
16,501

 
47,970

 
45,078

Engineering Services and Other
 
1,456

 
6,340

 
6,694

 
14,450

Elimination of inter-segment gross profit
 
(15,024
)
 
(16,501
)
 
(47,970
)
 
(45,078
)
Total gross profit
 
$
24,811

 
$
28,492

 
$
89,570

 
$
80,644

Revenue and cost of revenue is the only discrete financial information the Company prepares for its segments. Other financial results or assets are not separated by segment.
The Company’s geographic operations outside the United States include sales and service offices in Europe and the Middle East, South America, Asia Pacific and Canada. Service revenue includes engineering services which can vary significantly from period to period. The following data represents the Company’s revenue for the United States and all other countries, which is determined based upon a customer’s geographic location (in thousands):
 
 
United States
 
Other Countries
 
Total
 
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Three months ended September 30,
 
 
 
 
 
 
 
 
 
 
 
 
Product revenue
 
$
35,968

 
$
38,007

 
$
22,022

 
$
7,273

 
$
57,990

 
$
45,280

Service revenue
 
20,936

 
23,298

 
13,870

 
11,122

 
34,806

 
34,420

Total revenue
 
$
56,904

 
$
61,305

 
$
35,892

 
$
18,395

 
$
92,796

 
$
79,700

 
 
United States
 
Other Countries
 
Total
 
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Nine months ended September 30,
 
 
 
 
 
 
 
 
 
 
 
 
Product revenue
 
$
74,140

 
$
90,148

 
$
111,683

 
$
27,791

 
$
185,823

 
$
117,939

Service revenue
 
65,166

 
74,500

 
41,604

 
33,427

 
106,770

 
107,927

Total revenue
 
$
139,306

 
$
164,648

 
$
153,287

 
$
61,218

 
$
292,593

 
$
225,866

Sales to the U.S. Government totaled approximately $38.5 million and $99.9 million for the three and nine months ended September 30, 2018, respectively, compared to approximately $53.7 million and $145.3 million for the three and nine months ended September 30, 2017, respectively. For the nine months ended September 30, 2018, one non-U.S. Government customer in Japan accounted for 12% of total revenue. For the nine months ended September 30, 2018, total revenue in Japan accounted for 21% of total revenue. For the nine months ended September 30, 2017, no non-U.S. Government or international customer accounted for more than 10% of total revenue.

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