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CRAY INC

No Longer Reporting

The company has not filed an annual or quarterly report since its Q2 FY2019 10-Q, filed Aug 2, 2019. Its latest SEC filing is a 15-12G from Oct 7, 2019.

The sections below describe the company as of the FY2018 annual report.

What Did They Do?

Builds supercomputers, high-performance storage, and data analytics and AI systems for government agencies and funded entities, academic institutions, and commercial companies.

How Did They Make Money?

Customers buy supercomputers, storage and data systems; product sales are generally billed after acceptance, installation or delivery, while payment terms may be before, at or after the work is completed. Support is commonly arranged annually, though some customers pay monthly, quarterly or over multiple years.

FY2018 revenue

Who Were Their Customers?

Government agencies and government-funded research institutions, academic institutions, and commercial companies buy Cray systems and services. Cray sells directly through its sales force and through authorized partners, including ClusterStor resellers.

Customers above 10% of revenue, FY2018
of revenue from one customer
FY2017: 11% from one customer

Did Revenues Turn Into Profits?

Not on paper. It lost $71.7M in FY2018, but brought in more cash than it spent: $96.6M of free cash flow.

Operating income, FY2018
−16% of revenue
▲ +13% (Loss) vs FY2017 (−$65.6M, −17%)
Net income, FY2018
−16% of revenue
▼ −46% (Loss) vs FY2017 (−$133.8M, −34%)
Free cash flow, FY2018
21% of revenue
▲ Now profitable vs FY2017 (−$90.8M, −23%)

How Were They Changing?

Since the FY2018 annual report
Latest quarter: Q2 FY2019, the three months to Jun 30, 2019
Revenue
▼ −43%
vs $120.2M in Q2 FY2018
Net income
▲ +289% (Loss)
vs −$11M in Q2 FY2018
  • Sep 25, 2019 HPE acquired Cray, which became its wholly owned subsidiary The merger closed, Cray shares were converted into cash, and trading on Nasdaq ceased.

Shrank. Revenue fell 19% in 4 years, from $561.6M in FY2014 to $455.9M in FY2018, about 5% a year.

Separating storage solutions The latest report presents high-performance storage as its own solution model alongside tightly integrated and cluster supercomputing; the older report grouped storage with both integrated and cluster solutions.

Who Did They Compete With?

Competes with HPE, IBM, Lenovo, Dell/EMC, Huawei, NEC, Hitachi, Fujitsu, Atos-Bull, Intel, Teradata, Oracle, SAS, SAP, Data Direct Networks, and NetApp

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