SYSTEMS

Sales of Cray systems fell by fifty percent in the first quarter of 2014 worldwide, as the company struggles to compete against cluster vendors in the supercomputer market.

Revenue for the quarter was $55 million compared to $80 million in the prior year period. Sales of their products were $30 Million compared to $60 million in the first quarter of 2013.

The Company reported a net loss for the quarter of $12.9 million, or $0.34 per diluted share, compared to a net loss of $7.6 million, or $0.20 per diluted share in the first quarter of 2013.  Net loss was $17.6 million or $0.46 per diluted share for the quarter, compared to $8.4 million, or $0.23 per diluted share for the same period last year.

Operating expenses for the first quarter were $39.8 million compared to $36.9 million for the prior year period.  Non-GAAP operating expenses for the first quarter were $37.3 million, compared to $35.2 million for the prior year period.

As of March 31, 2014, cash, investments and restricted cash totaled $278.6 million compared to $220.4 million at December 31, 2013.  Working capital at the end of the first quarter was $314.9 million, compared to $334.9 million at December 31, 2013.

“We’re off to a solid start to the year,” said Peter Ungaro, president and CEO of Cray.