Cray Inc. Receives $22.8 Million in New Supercomputer Orders.Business Editors/High-Tech Writers SEATTLE--(BUSINESS WIRE)--Jan. 4, 2001 Sales and Order Timing Results in Fourth-Quarter Revenue Expectations of Approximately $33.5-35 Million and Creates Strong Year-End Order Backlog of Approximately $28 Million; Company Receives $12.5 Million in Funding and Completes Final SGI (SGI, Sunnyvale, CA, www.sgi.com) A manufacturer of workstations and servers, founded in 1982 by Jim Clark. The company was founded as Silicon Graphics, Inc., but changed to its acronym in 1999. Payment Global supercomputer leader Cray Inc. (Nasdaq:CRAY) today announced that it received $22.8 million in new orders from government customers. The orders call for installation of Cray T3E The Cray T3E was Cray Research's second-generation massively parallel supercomputer architecture, launched in 1995. Like the previous Cray T3D It was a fully distributed memory machine using a 3D torus topology interconnection network. (TM) supercomputer technology valued at approximately $21 million in the first quarter of 2001, and Cray SV1(TM) supercomputer technology now through mid-2001. The Cray T3E system holds the current world record for computer problem-solving speed and was named co-winner of the "Supercomputer Product of the Year" award for 2000 along with the Cray SV1 by the readership of Scientific Computing & Instrumentation magazine. The delayed timing of previously forecasted sales and orders is expected to result in fourth-quarter 2000 total revenues of approximately $33.5-35 million, and to contribute to expected year-end product order backlog of about $28 million. "As we have stated, the supercomputer business is `lumpy', and it is not unusual for sales and orders to slip into a subsequent quarter," said Cray Inc. president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jim Rottsolk. "These latest orders demonstrate the continued leadership of our products in mission-critical environments. In addition, we still expect to receive a new order for a Cray MTA (1) (Message Transfer Agent or Mail Transfer Agent) The store and forward part of a messaging system. See messaging system. (2) See M Technology Association. 1. (messaging) MTA - Message Transfer Agent. system soon, as well as other product orders that slipped beyond December. With this growing backlog, we are off to a strong start in 2001." On December 29, 2000, the company completed the third and final payment of its $35.7 million promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. to Silicon Graphics, Inc., for the March 2000 acquisition of the Cray Research See Cray. business assets. "This is the final step in our acquisition of the Cray Research operations," Rottsolk added. The company also announced that it has raised $12.5 million from two institutional investors in the form of promissory notes. The company has agreed to issue shares of common stock to the investors covered by the company's shelf registration statement and to apply the purchase price for the shares against repayment of the principal and interest on the notes. Through December 2000, the company repaid $4.2 million of the notes by delivering an aggregate of 1,671,094 shares of common stock at an average price of $2.51 per share, which reflects an 8% discount from the daily volume weighted average trading price Trading price The price at which a security is currently selling. for the company's stock. Unless the company prepays the notes, it will repay the remaining $8.3 million of the notes by issuing additional shares of common stock to the investors, using a 9% discount from the average of the daily volume weighted average trading prices over the period from the first week of January through March 2001. About Cray Inc. Cray Inc. designs, builds and sells high-performance MPP (Massively Parallel Processing or Massively Parallel Processor) A multiprocessing architecture that uses up to thousands of processors. Some might contend that a computer system with 64 or more CPUs is a massively parallel processor. , vector processor and general-purpose parallel computer systems. The company has leading edge technology, multiple product platforms, nearly 900 employees, a $2 billion installed base of approximately 600 computers worldwide, major manufacturing and service capabilities and extensive global customer relationships. Cray believes its Multithreaded multithreaded - multithreading Architecture and Cray T3E and Cray SV2(TM) systems together represent the future of supercomputing. Go to www.cray.com for more information on the company. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This press release contains forward-looking statements. There are certain factors that could cause Cray's execution plans to differ materially from those anticipated by the statements above. Among such factors are government support and funding for supercomputer systems, expected delivery and acceptance times, and timely availability of commercially acceptable components from third party suppliers. For a discussion of such risks, and other risks that could affect Cray's future performance, please see "Risk Factors" in Cray Inc.'s most recent SEC Form 10-Q Form 10-Q See 10-Q. . Note to Editors: Cray is a registered trademark, and Cray T3E, Cray SV1, Cray MTA and Cray SV2 are trademarks, of Cray Inc. All other trademarks are the property of their respective owners. |
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