The company’s earnings per share of $0.02 was slightly below analyst expectations, after nearly $6m in revenue was deferred due to incomplete product deliveries. The company now expects to close these deals in the second quarter, according to chairman and CEO, Jim Rottsolk.
Despite the deferred revenue, Rottsolk said the company had achieved all its shipment and acceptance goals for its new X1 supercomputer, launched in November 2002. Multimillion-dollar orders from the US Government, the Department of Energy and US Army for the X1 helped to boost Cray’s product revenue by 81% in the first quarter to $27.3m, while service revenue shrank 16.3%, compared with the same quarter last year.
The company’s cash and marketable instruments also rose substantially during the quarter to $61.3m from $23.9m, aided by Cray’s $46m secondary public offering, which closed in February. During the quarter the company also paid down a $3.2m long-term loan with Foothill Capital, and arranged a $25m one-year revolving credit facility with Wells Fargo Bank.
Looking ahead, Cray reiterated its revenue guidance for full-year 2003 of revenue of at least $220m and operating income between 5% and 10% of revenue.
Source: Computerwire
