SEATTLE, WA, Mar 31, 2006 (MARKET WIRE via COMTEX News Network) -- Global supercomputer leader Cray Inc. (NASDAQ: CRAY) today announced
that the Company will delay the filing of its 2005 Annual Report on
Form 10-K for the year ended December 31, 2005, pending the
completion of a review of a non-cash item in 2004 of $3.3 million
that could result in an adjustment to its 2004 financial statements.
The Company expects to be able to file the 2005 Form 10-K as soon as
the review is completed.
On March 17, 2006, Cray announced that its management, audit
committee and current and previous auditors were reviewing an issue,
identified by management, to determine if revenue recognized in 2004
under one of the Company's product development contracts was
appropriately recorded. The potential non-cash adjustment could
reduce previously reported 2004 revenue and increase previously
reported loss from operations and net loss by $3.3 million. The
identified issue represents approximately 2.2% of the Company's 2004
revenue, 2.3% of its 2004 loss from operations and 1.6% of its 2004
net loss and net loss per share. The Company believes there will be
no impact to its cash or short-term investment position during 2004
or 2005. The issue is not expected to affect the financial results
for any period prior to 2004, and if an adjustment were required to
the 2004 financial statements, the issue would not affect 2005
About Cray Inc.
As the global leader in high performance computing (HPC), Cray
provides innovative supercomputing systems that enable scientists and
engineers in government, industry and academia to meet both existing
and future computational challenges. Building on years of experience
in designing, developing, marketing and servicing the world's most
advanced supercomputers, Cray offers a comprehensive portfolio of HPC
systems that deliver unrivaled sustained performance on a wide range
of applications. Go to www.cray.com for more information.
Safe Harbor Statement
This press release contains forward-looking statements. There are
certain factors that could cause Cray's execution to differ materially
from those anticipated by the statements above, including the timing
and results of the ongoing review of the potential adjustment to the
2004 financial statements. For a discussion of other risks, see
"Factors That Could Affect Future Results" in Cray's most recent
Quarterly Report on Form 10-Q filed with the SEC.
Cray is a registered trademark of Cray Inc.
SOURCE: Cray Inc.