Cray Inc. Amends 2002 Form 10-K.Business Editors/High-Tech Writers SEATTLE--(BUSINESS WIRE)--March 12, 2004 Global supercomputer supercomputer, a state-of-the-art, extremely powerful computer capable of manipulating massive amounts of data in a relatively short time. Supercomputers are very expensive and are employed for specialized scientific and engineering applications that must handle very leader Cray Inc. (Nasdaq:CRAY) announced that it is filing today with the SEC an Annual Report on Form 10-K/A for the year ended December 31, 2002 to reflect its Series A Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". as mezzanine equity rather than permanent equity. The change does not adjust Cray's income statement for any period. The change in presentation is due to an interpretation of the terms of the Series A Convertible Preferred Stock in consideration of Emerging Issues Task Force Issue D-98: "Classification and Measurement of Redeemable Securities," dated July 19, 2001. While the Series A Convertible Preferred Stock was, by its terms, not redeemable, the occurrence of certain events such as a hostile tender offer hostile tender offer An offer to purchase shares from a firm's stockholders when directors of the target firm have recommended that stockholders not sell their stock. could have caused a liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of the Series A Convertible Preferred Stock in preference to the common shares. Cray issued the Series A Convertible Preferred Stock in May 2001 to NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. Corporation. In June 2003, NEC Corporation converted all the Series A Convertible Preferred Stock into Cray common stock and sold all of the underlying common shares. About Cray Inc. Cray's mission is to be the premier provider of supercomputing solutions for its customers' most challenging scientific and engineering problems. Go to www.cray.com for more information about the company. |
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