SEATTLE, Mar 28, 2002 (BUSINESS WIRE) -- Global supercomputer leader Cray Inc.
(Nasdaq:CRAY) today announced that it expects to be modestly profitable for the
2002 first quarter before one-time realignment charges.
The cost reductions and realignment charges, amounting to more than $5 million
on an annualized basis, are related primarily to a workforce reduction of about
20 persons taking place this week. Most of the reductions involve R&D personnel.
Cray officials said previously that they planned to reduce R&D expenditures as
the company neared the end of a period in which multiple new supercomputer
systems were being developed.
The company began shipping new Cray SV1ex(TM) enhanced-memory systems and Cray
MTA-2(TM) multithreaded systems in the fourth quarter of 2001, and expects to
begin shipping the code-named Cray SV2(TM) system in the second half of 2002.
"We are approaching the end of a period requiring unusually high R&D investment
to position Cray Inc. for future growth and industry leadership," said Cray
chairman and CEO Jim Rottsolk. "At this point, we can modestly reduce that
investment without affecting progress in our crucial Cray SV2 development and
other continuing R&D activities."
Cray plans to report financial results for the 2002 first quarter on May 1,
2002.
About Cray Inc.
Cray is the premier provider of supercomputing solutions for customers' most
challenging scientific and engineering problems. 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. Among these factors are the ability of Cray
supercomputer systems to pass individual customer acceptance tests, and general
economic and market conditions. For a discussion of these and other risks, see
"Factors That Could Affect Future Results" in Cray's most recent Form 10-Q and
"Additional Factors That Could Affect Future Results" in Cray's current report
on Form 8-K filed on Nov. 28, 2001.
Cray is a registered trademark, and Cray SV1ex, Cray MTA-2 and Cray SV2 are
trademarks, of Cray Inc. All other trademarks are the property of their
respective owners.
CONTACT: Cray Inc.
Steve Conway, 651/605-8942
conways@cray.com
or
Lippert/Heilshorn & Associates
Lillian Armstrong/David Barnard, CFA, 415/433-3777
lillian@lhai-sf.com
david@lhai-sf.com
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