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Primeur weekly 2019-05-13

Exascale supercomputing

AMD EPYC CPUs, AMD Radeon Instinct GPUs and ROCm Open Source software to power world's fastest supercomputer at Oak Ridge National Laboratory ...

U.S. Department of Energy and Cray to deliver record-setting Frontier supercomputer at ORNL ...

Cray pursues advanced research with DOE for exascale systems ...

CAAR accepting application team proposals for Frontier system ...

Quantum computing

Computing faster with quasi-particles ...

Quantum computing with graphene plasmons ...

Focus on Europe

ELIXIR and GA4GH expand collaboration ...

Netherlands eScience Center labeled "Center of Excellence" by international review committee ...

HPC stakeholders in Europe get together at EuroHPC Summit Week 2019 ...

Middleware

DDN announces intent to acquire Nexenta, a market expert in Software-Defined Storage for 5G and IoT ...

Hardware

Austria's Central Institution for Meteorology and Geodynamics improves weather nowcasting with Cray AI solutions ...

Cray reports first quarter 2019 financial results ...

CoolIT Systems announces liquid cooling solution for Intel Server System S9200WK ...

Hewlett Packard Enterprise integrates BlueData to accelerate Artificial Intelligence and data-driven innovation in the enterprise ...

Intel previews design innovation: 10nm CPU ships in June and 7nm product in 2021 ...

WekaIO Matrix selected by Mellanox Technologies to accelerate EDA workloads ...

Applications

King's College London and NVIDIA build UK's first AI platform for NHS hospitals ...

Quantum sensor for photons ...

Comet-enabled simulations showcase black holes and their magnetic bubbles ...

Ultra-secure form of virtual money proposed ...

Shaping the future of finance with HPC ...

NCSA scientist employs supercomputer simulations in Ohio gerrymandering case ...

Superfacility framework advances photosynthesis research ...

The Cloud

Supermicro introduces open private Cloud solutions based on new Red Hat Enterprise Linux 8 ...

NetApp powers data-driven organisations to succeed ...

Cray reports first quarter 2019 financial results

7 May 2019 Seattle - Cray Inc. has issued financial results for its first quarter ended March 31, 2019. All figures are based on U.S. GAAP unless otherwise noted. A reconciliation of GAAP to non-GAAP measures is included in the financial tables.

Revenue for the first quarter of 2019 was $72 million, compared to $80 million in the first quarter of 2018. Net loss for the first quarter of 2019 was $29 million, or $0.72 per diluted share, compared to net loss of $25 million, or $0.62 per diluted share in the first quarter of 2018. Non-GAAP net loss was $26 million, or $0.63 per diluted share for the first quarter of 2019, compared to non-GAAP net loss of $21 million, or $0.53 per diluted share in the first quarter of 2018.

Overall gross profit margin on a GAAP and non-GAAP basis for the first quarter of 2019 was 36% and 37%, respectively, compared to 34% on a GAAP and non-GAAP basis in the first quarter of 2018.

Operating expenses for the first quarter of 2019 were $56 million, compared to $52 million in the first quarter of 2018. Non-GAAP operating expenses for the first quarter of 2019 were $53 million, compared to $49 million in the first quarter of 2018. Net Research and Development expenses increased by $6 million in the first quarter of 2019 compared to the first quarter of 2018, driven primarily by the timing of certain milestone reimbursements.

As of March 31, 2019, cash and restricted cash totaled $222 million. Working capital at the end of 2019 was $263 million, compared to $291 million at December 31, 2018.

"We are incredibly honored to have been selected to deliver 'Frontier', an exascale supercomputer to the U.S. Department of Energy's Oak Ridge National Laboratory, which was announced earlier today", stated Peter Ungaro, president and CEO of Cray. "This transformative award serves as further validation for our next-generation Shasta architecture, which will enable groundbreaking research and AI at unprecedented scale. This is a truly historic win for our company, representing the largest contract we've ever received, and with our recent Aurora system at Argonne, the second exascale award for our Shasta platform."

Peter Ungaro added: "We continue to expect 2019 to be a transition year as we do not plan to begin shipping Shasta systems until the end of the year. However, with growing momentum and continued execution, we are well positioned to expand on our market leadership position and deliver strong long-term growth."

For 2019, while a wide range of results remains possible, Cray continues to expect revenue to grow modestly compared to 2018. Revenue is expected to be about $70 million for the second quarter of 2019. For the year, GAAP and non-GAAP gross margins are expected to be in the 30% range. Operating expenses will increase in 2019, primarily driven by investments made toward the exascale award. For 2019, non-GAAP operating expenses are expected be in the range of $215 million for the year, and total non-GAAP adjustments are expected to be about $16 million, driven primarily by share-based compensation. Based on this outlook, the company continues to expect a substantial GAAP and non-GAAP net loss for 2019.

Cray’s effective GAAP and non-GAAP tax rates for 2019 are both expected to be in the low single-digit range.

Actual results for any future periods are subject to large fluctuations given the nature of Cray's business.

Recent highlights include the following:

  • On May 7, Cray and the U.S. Department of Energy (DOE) announced that Cray will deliver "Frontier" for the DOE's Oak Ridge National Laboratory. Frontier will be based on Cray's new Shasta architecture and Slingshot interconnect and will feature future generation AMD EPYC CPU and Radeon Instinct GPU technology. This award is valued at more than $600 million in total combined value, including the system build and development contracts. Final system delivery is expected in 2021, with acceptance anticipated in 2022.
  • In May, the Central Institution for Meteorology and Geodynamics in Austria selected Cray to support a multi-year weather "nowcasting" project with the University of Vienna to benefit society and industry. This is the fourth weather center to select Cray to run advanced machine learning and AI.
  • In March, Cray announced that a Cray Shasta system will be the first U.S. exascale supercomputer. Cray was selected as a subcontractor to Intel to deliver the system to the U.S. Department of Energy's Argonne National Laboratory. The system is expected to be delivered in 2021 and will feature Cray's Shasta architecture, software stack and Slingshot interconnect. The program contract is expected to be finalized in mid-2019 and is valued at more than $100 million to Cray.
  • In February, Cray was awarded contracts with Eclipse Holdings Ltd. to expand and upgrade the South African Weather Service's (SAWS) Cray XC30-AC supercomputer and ClusterStor L300 storage system used for operational weather forecasting.
  • In April Cray announced updates to its product line to support Intel Xeon Gold 6200 processors and Intel Xeon Platinum 8200 processors in both the Cray CS500 and XC50 supercomputers.
  • In March, Cray appointed John Dinning as its new senior vice president of products. John Dinning brings over two decades of experience strategically guiding technology companies through market positioning, growth and business transformation.
  • In February, Cray's Board of Directors elected Stephen E. Gold as a member of the Board and appointed him to the Strategic Technology Assessment Committee. Mr. Gold has over 30 years of Fortune 100 and entrepreneurship experience.
Source: Cray

Back to Table of contents

Primeur weekly 2019-05-13

Exascale supercomputing

AMD EPYC CPUs, AMD Radeon Instinct GPUs and ROCm Open Source software to power world's fastest supercomputer at Oak Ridge National Laboratory ...

U.S. Department of Energy and Cray to deliver record-setting Frontier supercomputer at ORNL ...

Cray pursues advanced research with DOE for exascale systems ...

CAAR accepting application team proposals for Frontier system ...

Quantum computing

Computing faster with quasi-particles ...

Quantum computing with graphene plasmons ...

Focus on Europe

ELIXIR and GA4GH expand collaboration ...

Netherlands eScience Center labeled "Center of Excellence" by international review committee ...

HPC stakeholders in Europe get together at EuroHPC Summit Week 2019 ...

Middleware

DDN announces intent to acquire Nexenta, a market expert in Software-Defined Storage for 5G and IoT ...

Hardware

Austria's Central Institution for Meteorology and Geodynamics improves weather nowcasting with Cray AI solutions ...

Cray reports first quarter 2019 financial results ...

CoolIT Systems announces liquid cooling solution for Intel Server System S9200WK ...

Hewlett Packard Enterprise integrates BlueData to accelerate Artificial Intelligence and data-driven innovation in the enterprise ...

Intel previews design innovation: 10nm CPU ships in June and 7nm product in 2021 ...

WekaIO Matrix selected by Mellanox Technologies to accelerate EDA workloads ...

Applications

King's College London and NVIDIA build UK's first AI platform for NHS hospitals ...

Quantum sensor for photons ...

Comet-enabled simulations showcase black holes and their magnetic bubbles ...

Ultra-secure form of virtual money proposed ...

Shaping the future of finance with HPC ...

NCSA scientist employs supercomputer simulations in Ohio gerrymandering case ...

Superfacility framework advances photosynthesis research ...

The Cloud

Supermicro introduces open private Cloud solutions based on new Red Hat Enterprise Linux 8 ...

NetApp powers data-driven organisations to succeed ...