Cray (CRAY) Finalizes $188M NSF Blue Waters Project Contract; Sees FY12 Revs Above Views
Tweet
Share
E-mailGet Alerts CRAY Hot Sheet
Join SI Premium – FREE
Cray Inc. (Nasdaq: CRAY) today announced it has finalized a contract with the University of Illinois' National Center for Supercomputing Applications (NCSA) to provide the supercomputer for the National Science Foundation's Blue Waters project. The supercomputer will be comprised of a Cray XE6 system and a future upgrade of the recently-announced Cray XK6 supercomputer with GPU computing capability incorporated into a single, powerful hybrid supercomputer. Once fully deployed, the Blue Waters system is expected to have a sustained performance of more than one petaflops on demanding scientific applications.
Consisting of products and services, the multi-phase, multi-year contract is valued at $188 million. The Cray supercomputer will be installed in multiple phases over the first three quarters of 2012 at the University of Illinois' National Petascale Computing Facility. The integrated XE6 and XK6 supercomputer will feature new 16-core AMD (NYSE: AMD) Opteron" 6200 Series processors (formerly code-named "Interlagos"), a next-generation GPU from NVIDIA (Nasdaq: NVDA), called "Kepler," and a new integrated storage solution from Cray. Acceptance of the complete system is anticipated to occur in the fourth quarter of 2012.
For 2012, revenue is anticipated to be in the range of $340-$360 million, which includes the Blue Waters system at NCSA that is expected to contribute roughly 40 percent of the annual revenue. Revenue is expected to be heavily weighted to the fourth quarter. Gross margins for the year are anticipated to be in the 35 percent range. While it is still early in the annual budgeting cycle, total operating expenses for 2012 are anticipated to be in range of $110-$115 million, driven primarily by higher investments in our growth initiatives. Based on this outlook, we expect to be profitable for 2012.
The Street sees revs of $320 million.
Consisting of products and services, the multi-phase, multi-year contract is valued at $188 million. The Cray supercomputer will be installed in multiple phases over the first three quarters of 2012 at the University of Illinois' National Petascale Computing Facility. The integrated XE6 and XK6 supercomputer will feature new 16-core AMD (NYSE: AMD) Opteron" 6200 Series processors (formerly code-named "Interlagos"), a next-generation GPU from NVIDIA (Nasdaq: NVDA), called "Kepler," and a new integrated storage solution from Cray. Acceptance of the complete system is anticipated to occur in the fourth quarter of 2012.
For 2012, revenue is anticipated to be in the range of $340-$360 million, which includes the Blue Waters system at NCSA that is expected to contribute roughly 40 percent of the annual revenue. Revenue is expected to be heavily weighted to the fourth quarter. Gross margins for the year are anticipated to be in the 35 percent range. While it is still early in the annual budgeting cycle, total operating expenses for 2012 are anticipated to be in range of $110-$115 million, driven primarily by higher investments in our growth initiatives. Based on this outlook, we expect to be profitable for 2012.
The Street sees revs of $320 million.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Nvidia makes minority investment in Cloverleaf Infrastructure
- BJ's Wholesale Club (BJ) Tops Q2 EPS by 19c, Beats on Revenue; Offers FY27 EPS Guidance
- Advance Auto Parts (AAP) Tops Q2 EPS by 22c; lifrs profit guidance
Create E-mail Alert Related Categories
Corporate News, GuidanceSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
