SEATTLE--(BUSINESS WIRE)--April 2, 2004--Cray Inc. (Nasdaq:CRAY)
today announced that it has completed the acquisition of privately
held OctigaBay Systems Corporation of Vancouver, British Columbia.
This acquisition, coupled with Cray's previously announced decision to
commercialize the Sandia "Red Storm" system, will extend Cray's
product portfolio and multiply its addressable market by over four
times, according to market analyst firm IDC.
In completing the transaction, Cray exchanged about 12.4 million
shares and just under $15 million dollars for all outstanding
OctigaBay shares and assumed approximately 740,000 options. The
acquisition is expected to be accretive in 2005, excluding the impact
of non-cash acquisition-related charges. For 2004, the continuing cost
of OctigaBay-related product development efforts and the product
launch will be about $2 million per quarter.
OctigaBay has been developing a high performance computing (HPC)
system designed around its direct connected processor architecture, an
innovative approach to massively parallel processing that directly
links together processors, alleviating memory contention and
interconnect bottlenecks found in cluster systems. The OctigaBay
system, formerly known as the 12K, will be called the Cray XD1
Early shipments of the Cray XD1 direct connect processor product
are expected in the second half of 2004, with general availability in
early 2005. Pricing, to be announced later this year, is expected to
range from under $100,000 to about $2 million.
"With the addition of OctigaBay, Cray can provide purpose-built
systems at a wide range of price points that allow customers to get
more work done at a lower cost than they can with mainstream HPC
systems today," said Cray Chairman and CEO Jim Rottsolk.
Previewed by OctigaBay in November 2003, the Cray XD1 high
performance computer has an innovative architecture that embeds both a
high speed interconnect and application accelerators to remove major
bottlenecks and improve performance on real-world applications.
Self-monitoring, self-healing and management features give
administrators a highly reliable and easy-to-use system.
About Cray Inc.
Cray's mission is to be the premier provider of supercomputing
solutions for its customers' most challenging scientific and
engineering problems. Cray currently participates primarily in the HPC
capability market with its Cray X1(TM) product. In October 2003, the
company announced plans to offer a second product line to the
capability and enterprise segments, based on the 40-teraops "Red
Storm" massively parallel processing system Cray plans to deliver to
Sandia National Laboratories in the second half of 2004. Both the "Red
Storm" and Cray XD1 products will use the Advanced Micro Devices Inc.
Opteron(TM) processors connected via a low-latency, high-bandwidth
interconnect network based on HyperTransport(TM) technology, coupled
with Cray's custom interconnect technology. Go to www.cray.com for
more information about the company.
Safe Harbor Statement
This press release contains forward-looking statements. There are
certain factors that could cause Cray's execution plans to differ
materially from those anticipated by the statements above. These
include the technical challenges of developing high performance
computing systems, including the "Red Storm" and Cray XD1 products,
government support and timing of supercomputer systems purchases,
reliance on third-party suppliers, the possibility that Cray and
OctigaBay may be unable to execute successfully their integration
strategies, successful porting of application programs to new computer
systems, Cray's ability to compete with larger, more established
companies and innovative competitors, Cray's ability to keep up with
rapid technological change, and general economic and market
conditions. For a discussion of these and other risks, see Cray's
Annual Report on Form 10-K filed with the SEC on March 12, 2004.
Cray is a registered trademark, and Cray X1 and Cray XD1 are
trademarks, of Cray Inc. All other trademarks are the property of
their respective owners.
CONTACT: Cray Inc.
Lori Kaiser, 206/701-2233 (Media)
Victor Chynoweth, 206/701-2280 (Investors)
SOURCE: Cray Inc.