Cray +15% on $174M supercomputer deal

The U.S. National Nuclear Safety Administration (NNSA) has awarded CRAY a $174M deal to provide an XC30 supercomputer with an accompanying Sonexion storage system.

The system, called Trinity, will simulate nuclear tests (among other things). It's expected to have over 8x as much computing power as a Cray XE6 system (called Cielo) currently used by the NNSA.

"Substantial system acceptances" are expected to occur in late-2015 and 2016. Rival SGI recently won a supercomputer deal wit the U.K.'s Atomic Weapons Establishment.

15% of Cray's float was shorted as of June 13.

From other sites
Comments (2)
  • Exquisite Decay
    , contributor
    Comments (289) | Send Message
    The more things change; the more things stay the same. This is just like stock action with the original Cray Research back in the '80s when Dr. Seymour Cray was still around. I owned some shares when I was in college and the few times a year when the company would get a new government contract (or not get an expected sale) the stock price would move big time up/down 15% or more. When you were only selling a few supercomputers a year, one more or one less made a huge difference.
    10 Jul 2014, 10:48 AM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (2146) | Send Message
    This is a substantial deal for $CRAY, roughly one third of their annual revenue. Of course the revenue will be distributed over several years, but still.


    Cray is doing great on both supercomputing and non-supercomputing (i.e. high-end HPC / Big Data etc) fronts. If they get the high-end HPC execution working as planned anything is possible with this company, really multiplying their earnings potential via entering much bigger market (and less volatile to individual deals like in selling supercomputers). The technology, engineers and team are brilliant (I used to collaborate with them extensively, so I know many people there first hand).


    On one hand this massive deal now in hand, on the other hand they already projected 20% of the revenue coming from non-supercomputing, compared to 10% earlier. And keeping in mind that earlier this year they just doubled their production/manufacturing capacity. Now that is a great indicator of future growth to me :)
    10 Jul 2014, 10:51 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs