Cray (CRAY) Misses Q2 EPS by 4c; Cuts FY16 Revenue Outlook

Cray (NASDAQ: CRAY) reported Q2 EPS of ($0.29), $0.04 worse than the analyst estimate of ($0.25). Revenue for the quarter came in at $100.2 million versus the consensus estimate of $101.36 million.

Outlook For 2016, while a wide range of results remains possible, the Company now expects revenue to be in the range of $650 million. (The Street sees $795.4 million.) The change in the Company's revenue outlook was driven by the level and timing of new orders and the delays of key third-party components, the risks of which were outlined last quarter, as well as a very recent electrical smoke event caused by a failed manufacturing facility power component that will delay the Company's ability to deliver on some customer contracts in 2016, including an impact on anticipated third quarter revenue. Revenue for the third quarter is anticipated to be in the range of $80 million. GAAP and Non-GAAP gross margin for the year is expected to be in the range of 34%. Non-GAAP operating expenses for the year are anticipated to be about $200 million. For 2016, GAAP operating expenses are anticipated to be about $12 million higher than non-GAAP operating expenses, and GAAP gross profit is expected to about $1 million lower than non-GAAP gross profit. Based on this outlook, the Company expects to be profitable on a GAAP and non-GAAP basis for 2016.

For earnings history and earnings-related data on Cray (CRAY) click here.

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