The company, whose systems are used by the country’s national labs and the Homeland Security Department, carries hefty research and development costs as a result of supporting four computer architectures collected through mergers and acquisitions. Cray sells four lines of supercomputers: a high-end system based on Advanced Micro Devices’ Opteron chip; a vector processor machine; and systems based on technology from the former Tera Computer and OctigaBay Systems, now part of Cray.
Cray lost $10.3 million on sales of $44.7 million during the third quarter last year. Adding to its woes, its former chief scientist, Burton Smith, departed in November to join Microsoft. The company's stock (Nasdaq-Cray) is trading at less than $2 a share, and the shares fell in price on Friday when Cray said it had delayed filing its 2005 annual report while it determines whether revenue from a product development contract was improperly booked. On a preliminary basis, Cray said it lost $9 million in the fourth quarter on revenues of $65 million.
But Cray still has its believers. Last week, an Indian government-run weather forecasting center said it purchased a Cray X1E vector supercomputer for the country’s fastest weather-prediction system, and an Indian institute bought one to conduct plasma research.
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