Cray Inc. Announces First Quarter 2002 Financial Results
5/1/02
Business Editors & High-Tech Writers
SEATTLE--(BUSINESS WIRE)--May 1, 2002--
Company reports revenue of $35.2 million and net profit of $2.6 million before one-time restructuring charge of $1.9 million
Global supercomputer leader Cray Inc. (Nasdaq:CRAY) today announced financial results for the first quarter ended March 31, 2002.
The company posted a profit before restructuring charges of $2.6 million on revenue of $35.2 million during the quarter, benefiting primarily from unusually high margins on product sales, reduced R&D spending, other operating expense reductions and the settlement of a previously reserved cancellation charge.
Cray also reiterated 2002 guidance that it expects to be profitable and cash flow positive for the full year, and reported that backlog stands at record levels of approximately $38 million.
"We are very pleased with the progress we made during the quarter and have been executing consistently well on both financial and operational fronts," commented Jim Rottsolk, Cray chairman and CEO. "The majority of the restructuring is now behind us, we achieved our short-term profitability target, and we've been hitting the important milestones with product development as well as product shipments," he said.
Financial Results
Net revenue for first quarter 2002 was $35.2 million, down from $48.7 million reported in the same period last year. Net income for first quarter 2002, before a one-time restructuring charge of $1.9 million, was $2.6 million, or $0.06 cents per share, compared to $2.8 million, or $0.07 cents per share reported in the first quarter last year. Including the $1.9 million restructuring charges, the reported net income for the first quarter 2002 was $749,000, or $0.02 per share.
Following implementation of the new accounting treatment under Statement of Financial Accounting Standards No.142, the company determined that there was no impairment related to goodwill and other intangible assets resulting from the acquisition of the Cray business unit from SGI in April 2000. The company does not anticipate any further amortization of these intangible assets in 2002.
Cray reported a backlog of $38 million as of March 31, 2002. While working capital held steady during the quarter, it is expected to continue to improve, based upon anticipated receivables, reduced levels of operating expenses and current forecasts for product sales.
Financial Guidance
The company reaffirmed previously announced guidance indicating that it expected to be profitable for the full year 2002. The recently announced $16 million Department of Defense T3E order will now ship in the third quarter. As a result, the company stated that it expects to post a profit for the next six-month period, with financial results in the third quarter anticipated to be stronger than the second quarter.
The company also reiterated previously announced guidance that 2002 total revenues would be approximately $160 million with an estimated backlog of approximately $100 million by the end of 2002.
Preliminary estimates for full year revenues for 2003 are expected to be in excess of $200 million, according to company guidance, though the ability to achieve this revenue estimate would be dependent upon the timing of the SV2 production ramp.
"Our significant development efforts remain on track," commented Jim Rottsolk. "In April, we reached a significant milestone as the SV2 successfully ran real applications using system software and hardware during a quarterly review conducted by U.S. government agencies and other potential customers. And we recently installed a 40-processor MTA-2 system with 160 gigabytes of memory at the Naval Research Laboratory in Washington D.C., and expect to begin acceptance testing shortly," he said. |
