Cray today announced financial results for the first quarter ended March 31, 2010.  Revenue for the quarter was $28.4 million compared to $74.5 million in the prior year period.  The company reported a net loss for the quarter of ($11.6 million) or ($0.34) per share compared to a net loss of ($4.9 million) or ($0.15) per share in the first quarter of 2009.

Total gross profit margin for the first quarter was 23 percent down slightly from 24 percent in the first quarter of 2009.  Product margin declined during the first quarter to 12 percent driven by low volume and a $0.5 million charge for estimated excess inventory.  The first quarter 2010 service margin of 29 percent was impacted by lower revenues on a custom engineering contract.

Operating expenses for the first quarter of 2010 were $18.2 million compared to $21.4 million in the prior year period due primarily to lower spending on outside services in research and development.  The first quarter 2010 results included non-cash items of $2.2 million for depreciation and amortization and $1.2 million related to stock compensation expense.

As of March 31, 2010, cash and short-term investments totaled $103.3 million.

“As expected, we got off to a slow start in the first quarter from a financial-results perspective, but we remain well-positioned to deliver on our growth targets for the year,” said Peter Ungaro, president and CEO of Cray.