SEATTLE, WA, Jun 04, 2007 (MARKET WIRE via COMTEX News Network) -- Global supercomputer leader Cray Inc. (NASDAQ: CRAY) today announced
that due to recent information with respect to the timing of volume
parts availability, the company now believes that 2007 revenue
associated with quad-core Cray XT4(TM) systems will likely be less
than previously anticipated. Cray continues to anticipate deliveries
of quad-core Cray XT4 systems and upgrades to begin during the fourth
quarter of 2007; however, the timing is such that most or all of the
planned acceptances, and associated revenue recognition, will likely
be deferred until early 2008.
Cray's last outlook, dated May 3, 2007, noted that anticipated
revenues from quad-core Cray XT4 systems and upgrades were an
important factor within the company's overall revenue plan for the
year, and a key risk. While there continues to be a wide range of
potential outcomes, total revenue for 2007 is now likely to be at or
below $200 million, and consequently, there is an increased
probability that the company will not achieve profitability for the
year.
"We are disappointed with the implications of this change in timing
to our Cray XT4 system rollout schedule and the impact on our 2007
outlook," stated president and CEO Peter Ungaro. "Two of our most
important goals have been to grow and achieve profitability, both of
which are now in jeopardy for 2007. We are actively working to
achieve the best results possible for 2007 and continue to work to
establish the foundation for longer-term sustained profitability and
growth."
About Cray Inc.
As a global leader in supercomputing, Cray provides highly advanced
supercomputers and world-class services and support to government,
industry and academia. Cray technology enables scientists and
engineers to achieve remarkable breakthroughs by accelerating
performance, improving efficiency and extending the capabilities of
their most demanding applications. Cray's Adaptive Supercomputing
vision will result in innovative next-generation products that
integrate diverse processing technologies into a unified
architecture, allowing customers to surpass today's limitations and
meeting the market's continued demand for realized performance. 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. These factors include
fluctuating quarterly operating results; reliance on third-party
suppliers, including potential delays in availability of qualified
parts from suppliers and their competitiveness with other suppliers;
the technical challenges of developing high performance computing
systems, including potential delays in development projects, such as
the quad-core Cray XT4, Cray XMT and BlackWidow systems; lower
margins and operating results due to many variables including pricing
pressure; anticipated revenue subject to complex revenue recognition
rules; the successful porting of application programs to Cray
computer systems; Cray's ability to keep up with rapid technological
change; Cray's ability to compete against larger, more established
companies and innovative competitors; and general economic and market
conditions. For a discussion of these and other risks, see "Risk
Factors" in Cray's most recent Quarterly Report on Form 10-Q filed
with the SEC.
Cray is a registered trademark, and Cray XT4, Cray XMT and Cray XT3
are trademarks of Cray Inc. All other trademarks are the property of
their respective owners.
Cray/Media:
Steve Conway
651/592-7441
sttico@aol.com
Investors:
Victor Chynoweth
206/701-2094
vic@cray.com
SOURCE: Cray Inc.
