Cray shares soar on strong 3Q, Appro deal
The Associated Press
Shares of supercomputer maker Cray rose Friday after the Seattle company announced better-than-expected third-quarter results.
The company also said it is buying a privately held supercomputer systems maker, Appro, for $25 million to expand its portfolio of supercomputing options.
Cray said Friday that it had a net loss of $5.2 million, or 14 cents a share, for its fiscal third quarter that ended Sept. 30. That compares with a loss of $12.2 million, or 35 cents a share, in the same quarter last year. Revenue fell 3 percent to $35.7 million from $36.7 million.
Analysts polled by FactSet were expecting the company to post a loss of 50 cents a share on revenue of $30 million.
It said that a “wide range of results” remains possible for 2012 due to the timing of deals for two of its supercomputers. The computers are two of the largest the company has ever built and together could make up $180 million in revenue.
If the deals move forward as planned, the company expects revenue of $450 million for the year; analysts had forecast revenue of $438.4 million. It expects to be profitable for the year on an adjusted basis. Analysts expect a profit of 90 cents a share.
The forecast does not include the planned acquisition of Appro.
Cray said it expects its revenue to grow slightly in 2013 and anticipates that the company will be profitable for the year.
Cray’s stock was up $1.35, or 11.2 percent, to $13.36 with about an hour of trading to go Friday. That’s the stock’s highest point since April 2007. Shares had gained 86 percent this year through Thursday’s close.