Cray has reported poor financial results for its first quarter ended March 31, 2019. 

Revenue for the first quarter of 2019 was $72 million, declining by 10% compared to $80 million in the first quarter of 2018. Net loss for the first quarter of 2019 was $29 million, or $0.72 per diluted share, compared to a net loss of $25 million, or $0.62 per diluted share in the first quarter of 2018. 

The overall gross profit margin on a GAAP basis for the first quarter of 2019 was 36%, compared to 34% on a GAAP basis in the first quarter of 2018.

Operating costs for the first quarter of 2019 were $56 million, compared to $52 million in the first quarter of 2018. Net Research and Development expense increased by $6 million in the first quarter of 2019 compared to the first quarter of 2018, driven primarily by the timing of certain milestone reimbursements.

As of March 31, 2019, cash and restricted cash totaled $222 million. Working capital at the end of 2019 was $263 million, compared to $291 million at December 31, 2018. {module In-article} 

“We continue to expect 2019 to be a transition year as we do not plan to begin shipping Shasta systems until the end of the year. However, with growing momentum and continued execution, we are well positioned to expand on our market leadership position and deliver strong long-term growth,” said Peter Ungaro, CEO of Cray. 

Outlook
For 2019, while a wide range of results remains possible, Cray continues to expect revenue to grow modestly compared to 2018. Revenue is expected to be about $70 million for the second quarter of 2019. Cray’s effective GAAP and non-GAAP tax rates for 2019 are both expected to be in the low single-digit range.