Cray CEO Peter Ungaro considers the slowdown in the supercomputer market as “temporary.”
Smoke-damaged equipment and a slowing supercomputer market were partly to blame for Seattle company Cray’s slowing revenue growth during its second quarter and lowered outlook for the rest of the year, CEO Peter Ungaro says.
The supercomputer company reported second-quarter revenue of $100.2 million, compared with $186.2 million in the same period last year. It reported a $13.1 million loss during the quarter.
“The market seems to be going through a far slower period this year than anticipated,” Ungaro said Tuesday on a conference call with analysts.
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The company also said a “smoke event” in its Chippewa Falls, Wis., manufacturing facility damaged five systems set to ship to customers. The systems will need to be reordered and rebuilt and could have a “significant impact” on the rest of the year, Ungaro said.
Cray said it expects annual revenue to be $650 million, down from the $825 million it anticipated earlier this year.
Ungaro characterized the slowdown in the market as “temporary” and that the company is working to add more commercial customers. Cray has traditionally done business mainly with public-sector agencies, but the company has been pushing into the private side recently.
Cray announced a partnership with Deloitte last month that will allow customers to use Cray’s supercomputers for analytics without having to purchase their own.
“While we had a number of exciting product launches in the second quarter, the drop in our revenue expectations for the second half of the year due to recent developments is extremely disappointing,” Ungaro said.
“However, I do not believe that our leadership position in the market has changed. We remain confident in our strategy, competitive position and our ability to drive growth into the future,” he said.