Cray Inc. Revises Revenue Expectations and Implements Cost-Saving Measures; Second Quarter Results and Conference Call Planned for August 2, 2001.Business Editors/High-Tech Writers SEATTLE--(BUSINESS WIRE)--July 20, 2001 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 NM:CRAY) today said it expects revenues for the second quarter ended June 30, 2001 to be in the range of $28.5 million to $29.0 million, modestly lower than the company's previous guidance of $31-33 million. The company said a $3 million supercomputer order expected in the second quarter slipped into the first week of the third quarter. Final results for the second quarter are scheduled to be released before the market opens on August 2, 2001. Cray Inc. added, however, that it is implementing several cost-saving measures to alleviate the expected impact of weakness in the global economy These steps will result in a lower operating cost structure which is expected to be in line with slightly lower than expected revenues in the second half 2001. Cray Inc. chairman 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 said, "In view of the current downturn in the overall economy, we are making a proactive effort to trim expenses in areas that are not crucial to our development milestones, marketing/sales objectives and other key business goals." Yesterday, the company told employees it is eliminating 30 positions -- about three percent of its workforce; reducing capital and materials expenditures; instituting mandatory vacations; and adopting a number of other cost-saving measures. The company expects to benefit from these expense reductions in the third and fourth quarters of 2001. "While we are not immune to near-term economic factors, Cray remains solidly positioned for future growth. The fundamental drivers of our business are intact, and we believe that the outlook for the company is on track as our next generation products come on line, new markets such as bioinformatics evolve, and economic conditions improve," added Rottsolk. Cray management expects to offer more detail on the quarterly results as well as its outlook for the remainder of the year during its regular quarterly conference call on August 2, 2001, the same day the company plans to release final results for the quarter. Details of the conference call are provided below. Investor Conference Call Management will discuss second-quarter results and the company's outlook and hold a question and answer session for investors on Aug. 2, 2001, at 11:00 a.m. Eastern / 8:00 a.m. Pacific. To participate, call 212/346-0173 a few minutes ahead of time (no passcode required). If you are unable to participate, a replay will be available from 1:30 p.m. Eastern on Aug. 2, 2001 for 48 hours. To access, please dial 1-800/633-8284, or 1-858/812-6440 (international), reservation number 19407329. In addition, the replay will be available for 90 days via the Internet at www.cray.com. 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 A computer with built-in instructions that perform multiple calculations on vectors (one-dimensional arrays) simultaneously. It is used to solve the same or similar problems as an array processor; however, a vector processor passes a vector to a functional unit, whereas an array processor and general-purpose parallel computer systems. The company has leading edge technology, multiple product platforms, nearly 900 employees, a worldwide installed base of supercomputer systems Three firms have held, simultaneously, the name Supercomputer Systems or Supercomputing Systems. The first was founded by Steve Chen, architect of the Cray X-MP and Cray Y-MP. The second was based in San Diego, California, USA. , major manufacturing and service capabilities and extensive global customer relationships. Cray believes its Multithreaded multithreaded - multithreading Architecture and 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), Cray SuperCluster su·per·clus·ter n. A group of neighboring clusters of galaxies. supercluster A large group of neighboring clusters of galaxies, along with isolated galaxies scattered between them, the entire collection (R) 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . There are certain factors that could cause Cray's execution plans to differ materially from those anticipated by the statements above. Among such risk factors are 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 "Factors That Could Affect Future Results" in Cray Inc.'s quarterly report on Form 10-Q Form 10-Q See 10-Q. . |
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