SCIENCE

Cray has announced 2010 financial results for the full-year and fourth quarter. For 2010, Cray reported record revenue of $319.4 million and net income of $15.1 million, or $0.43 per share. For 2009, revenue was $284.0 million and net loss was ($0.6 million), or ($0.02) per share.

Revenue for the fourth quarter of 2010 was $219.4 million compared to $88.2 million in the fourth quarter of 2009. The Company reported net income for the fourth quarter of 2010 of $52.1 million, or $1.46 per share, compared to $3.0 million, or $0.08 per share, in the fourth quarter of 2009.

Overall gross profit margin for 2010 was 34 percent compared to 37 percent in 2009. Product margin for 2010 was 35 percent compared to 34 percent in 2009 and service margin for 2010 was 32 percent compared to 44 percent for 2009. For the fourth quarter of 2010, overall gross profit margin was 37 percent compared to 41 percent in the fourth quarter of 2009.

Operating expenses for 2010 decreased to $92.5 million compared to $106.1 million in 2009. 2010 operating expenses benefited from higher R&D co-funding credits related to the Company's DARPA contract. Included in the 2010 results were $9.4 million for depreciation and amortization and $4.9 million related to stock compensation.

Operating expenses for the fourth quarter of 2010 were $27.4 million compared to $33.7 million in the prior year period. Included in the fourth quarter 2010 results were non-cash items of $2.6 million for depreciation and amortization and $1.3 million related to stock compensation.

As of December 31, 2010, cash balances totaled $61.3 million and accounts receivable totaled $106.3 million.

"2010 was a remarkable year for the company and I am extremely pleased with our results," said Peter Ungaro, president and CEO of Cray. "We grew revenue for a third straight year and posted strong profits -- both significant achievements of which we are all very proud. Our Custom Engineering business remained on a fast growth pace in 2010, more than doubling revenue over 2009. We launched the Cray XE6 supercomputer in mid-2010 and total orders for the system have now exceeded over $300 million. I am especially pleased with our execution in 2010 as we successfully developed an industry-leading supercomputer, built and installed a record number of systems over a six-month period, and achieved all of the acceptances necessary to make 2010 a record year."

Ungaro added, "Our focus now shifts to delivering on our strategic plans for 2011. With two major enhancements planned for the Cray XE6 line and continued momentum in Custom Engineering, we are positioned for continued growth in 2011."