SEC Filings

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


our expense levels, including research and development expense;
our ability to secure additional government funding for future development projects;
our ability to efficiently scale our internal processes to meet necessary peak requirements and growth in our business;
the level of revenue recognized in any given period, which is affected by the very high average sales prices and limited number of significant system sales and resulting potential acceptances in any quarter, the timing of product orders and acceptances by customers and contractual provisions affecting the timing and amount of revenue recognition;
our ability to continue to broaden our customer base beyond our traditional customers;
the level of product gross profit contribution in any given period due to volume, competition or product mix, particularly with the introduction of flexible commodity-based supercomputers, competitive factors, strategic transactions, product life cycle, currency fluctuations, acceptance penalties and component costs;
our ability to resolve and the costs incurred in connection with any actual or alleged issues with our products, including third-party components of such products, such as those that relate to product defects, such as the current “Meltdown” and “Spectre” processor vulnerabilities or intellectual property rights;
the competitiveness of our products, services and prices;
maintaining and successfully completing our product development projects on schedule and within budgetary limitations;
the level and timing of maintenance contract renewals with existing customers; and
the terms and conditions of sale or lease for our products and services.
The receipt of orders and the timing of shipments and acceptances impacts our quarterly and annual results, including cash flows, and is affected by events outside our control, such as:
whether or when we will realize any significant benefit from a rebound in the segments of the high-end of the supercomputing market that we target or how strong or long-lived such a rebound will be;
the timely availability of acceptable components, including, but not limited to, processors and memory, in sufficient quantities to meet customer delivery schedules and other customer commitments at a competitive cost and the identification of issues with already-delivered components, including processors, that require remediation and/or impact the performance of our products;
the timing and level of government funding and resources available for product acquisitions and research and development contracts, which have been, and may continue to be, adversely affected by the current global economic and fiscal uncertainties, increased governmental budgetary limitations and disruptions in the operations of the United States and other governments;
competitor and supplier pricing strategies;
new tariffs or taxes or other limitations on our access to components or products imposed by the United States on components and products sourced or manufactured outside of the United States, or by foreign governments on U.S.-manufactured or U.S.-designed products and services, or related trade disputes, which have recently been imposed and may continue to increase in the future;
declining U.S. relations with foreign entities, including between the U.S. government and foreign governments, may make it more difficult to sell U.S.-manufactured or U.S.-designed systems to those entities of governments, or in those countries;
currency fluctuations, international conflicts or economic crises, and fluctuations in oil prices that can affect the resources available to potential customers to purchase products;
the introduction or announcement of competitive or key industry supplier products;
price fluctuations or product shortages in the processors and other commodity electronics and memory markets;

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