SCIENCE

SEATTLE, WA -- Global supercomputer provider Cray Inc. (Nasdaq:CRAY) today reported financial results for the second quarter ended June 30, 2001. For the second quarter ended June 30, 2001, Cray Inc. revenues were $29.4 million, compared with revenues of $51.0 million for the second quarter of 2000. Excluding amortization of goodwill and intangible assets related to the acquisition of the Cray Research business operations, the company reported a pro-forma net loss for second quarter 2001 of $8.1 million, or ($0.20) per share. Including the amortization of goodwill and intangible assets, the company's net loss for the second quarter was $9.9 million, or ($0.24) per share. The company's loss before interest, taxes, depreciation and amortization, or EBITDA, for the second quarter 2001 was $4.4 million. For the six-month period ended June 30, 2001, the company reported revenues of $78.2 million, compared with revenues of $51.0 million for the prior-year period. Excluding non-cash interest charges and amortization of goodwill and intangible assets related to the acquisition of the Cray Research business operations, the company reported a pro-forma net loss of $2.5 million, or ($0.06) per share, compared to a pro-forma net loss of $2.9 million, or ($0.09) per share in the year-ago period. Including the non-cash interest charges and amortization of goodwill and intangible assets, the company reported a net loss of $7.1 million, or ($0.18) per share for the six months ended June 30, 2001. Accounts receivable was $30.4 million at June 30, 2001. Approximately 28%, or $8.5 million, of these receivables are non-revenue billings (pass-through billings). Day's sales outstanding for the current quarter calculated as gross accounts receivables less pass-through is 66 days and consistent with historical levels. The company completed a number key accomplishments during the second quarter 2001 including: -- Closing a long-term strategic agreement to distribute and service NEC vector supercomputers, an agreement which included a $25 million investment in Cray by NEC. -- Achieving stronger performance and price/performance than previously indicated for the Cray SV1ex(TM) supercomputer. -- Delivering the first Cray SV1ex system to Arctic Region Supercomputer Center. -- Receiving orders for Cray SV1 or Cray SV1ex supercomputers from the Ohio Supercomputer Center, GMR for NASA Ames Research Center, and the U.S. Army Space and Missile Defense Command. -- Reporting on a promising bioinformatics collaboration, including initial results, with the National Cancer Institute. "While challenges in the current economy are impacting us in the near term, particularly in the industrial market, the long-range forces driving demand for more powerful supercomputers are intact and are expected to continue to grow," stated Jim Rottsolk, chairman and CEO. "New markets such as bioinformatics are opening up, and our government business around the world remains less impacted by economic conditions, offering some cushion for us in the soft economic environment." "Our strategy for long-term growth remains on track, with next-generation products slated to start production in the next 6-18 months. Continued advances in our product development initiatives are allowing us to increase our bidding activities on multiple large procurements. Cray has positioned itself with the strongest line-up of supercomputer products in the marketplace, and I look forward to reporting on our progress as our newer products come to market," concluded Rottsolk. For more information visit www.cray.com