Cray's revenue for the third quarter of 2016 was $77.5 million, down 60% compared with $191.4 million in the third quarter of 2015.  Net loss for the third quarter of 2016 was $23.0 million, or $0.58 per diluted share, compared to net income of $10.9 million, or $0.27 per diluted share in the third quarter of 2015.  Non-GAAP net loss was $19.5 million, or $0.49 per diluted share for the third quarter of 2016, compared to non-GAAP net income of $19.5 million, or $0.48 per diluted share for the same period of 2015.

Overall gross profit margin on a GAAP and non-GAAP basis for the third quarter of 2016 was 30% and 31%, respectively.  For the third quarter of 2015, GAAP and non-GAAP gross profit margin was 34% and 35%, respectively. 

Operating expenses for the third quarter of 2016 were $52.1 million, compared to $47.9 million for the third quarter of 2015.  Non-GAAP operating expenses for the third quarter of 2016 were $49.3 million, compared to $45.1 million for the third quarter of 2015. 

As of September 30, 2016, cash, investments and restricted cash totaled $147 million. Working capital decreased in the third quarter of 2016 to $364 million compared to $381 million at the end of the second quarter.

“Our performance in the third quarter was highlighted by a number of new installations of supercomputers and storage systems worldwide,” said Peter Ungaro, president and CEO of Cray. “While market conditions remain challenging, we are beginning to see early signs of stabilization in certain areas, including in the energy market where we recently installed an additional XC system at PGS, and in the weather and climate market with a major win in the United States.  Overall, while our visibility remains limited, our competitive position is strong and we're focused on delivering on our outlook for the rest of the year.”