Cray records sizable profit in second quarter
The sale of its "interconnect" technology operations to Intel benefits the company's financial results.
Seattle Times technology staff
Supercomputer maker Cray swung to a profit of $147.4 million in the second quarter, largely on the sale of one of its operations to chipmaker Intel.
The profit, which amounted to $3.91 a share, compared with a loss of $3.0 million, or 8 cents a share, in the year-ago period.
The Seattle-based company saw sales reach $84.2 million in the quarter, up 24 percent from $67.9 million.
The quarter's results benefited from the company's sale, announced in April, of its interconnect hardware development program to Intel. The sale added a $139.1 million pre-tax gain to the company's financial performance.
Company executives at the time said chipmakers increasingly were adding interconnect technology directly to their products, so it made sense for Cray to sell those assets at this time.
In its earnings release, Cray said it could have "a wide range of results" for the rest of the year, especially because of a possible sale to one customer that could bring in $150 million in revenue — "the largest system we have ever built." If the deal is approved before year's end, Cray expects revenue of $430 million to $450 million in 2012.
Cray's shares closed Tuesday at $12.43, up 21 cents. The stock is trading at the upper end of its 52-week range of $4.96 to $12.93. The financial results were released after the market closed.