The supercomputer maker Cray Inc fell short of Wall Street’s earnings in the fourth quarter and said it would report a “substantial” non-GAAP net loss for 2019.
The news didn’t sit well with investors who sent Cray shares down by 6.6% in after-hours trading to $20.60.
In a statement, CEO Peter Ungaro forecast that 2019 would be a “transition year” as the company begins to ship its next-generation Shasta supercomputing platform later this year.
Shasta is billed as Cray’s attempt to bring about the “next era” of supercomputing. In a coup for the company, the National Energy Research Scientific Computing Center, recently bought a Shasta supercomputer in a $146 million contract.
“Shasta will deliver a balance of performance, flexibility and ease of use unlike anything available today, as well as a true exascale-class architecture capable of scaling well into the future,” Ungaro said in a statement.
For the three months until the close of December 31, the Seattle company posted a non-GAAP net loss of $9 million, or $0.22 per share, compared to net income of $9 million, or $0.22 per share in the fourth quarter of 2017. The results fell short of the expectations of analysts who had forecast that Cray would see a loss of $0.02 per share.
Its revenue in the fourth quarter came in at $163 million, down from $167 million in the fourth quarter of 2017, but ahead of analysts’ estimates of $158 million.
Looking ahead to 2019, Cray expects revenue to grow modestly compared to 2018, with gross margins set to be in the 30% range and operating expenses likely to grow. “Based on this outlook, the company expects to recognize a substantial GAAP and non-GAAP net loss for 2019,” Cray said in a statement.
Its net loss for 2018 was $72 million compared to a net loss of $134 million in 2017. Its revenue last year, meanwhile, came in at $456 million, compared to $393 million in 2017.
In business for more than 45 years, Cray develops some of the world’s most advanced supercomputers.
Contact Ellen Kelleher at [email protected]