View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
October 26, 1995

CRAY RESEARCH FACES UP TO THE GRINDING POVERTY OF SUCCESSIVE DOWNSIZINGS

By CBR Staff Writer

The need to cut its coat according to the far skimpier cloth allowed by the brave new world of open systems and workstations that deliver supercomputer power at a fraction of the cost is proving extremely painful for Cray Research Inc, and the company is having to take a bath that is assuming Control Data Corp proportions, with the nine-month loss after charges coming to 45% of the declining turnover for the period. And the company expects to report a fourth quarter and full year operating loss before charges – more of which will have to be taken this quarter as it continues to reduce its workforce. Our third-quarter operating results continued to show improvements over the previous quarters this year and the fourth quarter will be better on an operating basis, chairman Phillip Samper said, adding Our actions this year are setting the stage for a profitable 1996, particularly in the second half of the year. The company says its backlog at the end of the third quarter stood at $355m, the highest backlog level in seven quarters and up from $326m in backlog at the end of the second quarter. The order book has grown 50% from the backlog at the end of fiscal 1994. My optimism for 1996 is based on our orders, backlog and improved performance, Samper said. In the nine months, total employee population declined by nearly 330, or 7%, and jobs will decline further.

Topics in this article :
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU