Cray Inc., Board Meeting, Mar 26, 2013. Agenda: To consider the appoint of Dr. Prithviraj Banerjee to the Board effective as of May 1, 2013.

Cray Inc. introduced the Cray XC30-AC supercomputer -- the Company's new addition to its series of Cray XC30 systems. Shipping now, the new Cray XC30-AC supercomputer includes all of the advanced high performance computing (HPC) technologies offered in the Cray XC30 system, and features aggressive price points intended to attract a new a class of HPC users -- the technical enterprise. With prices starting at $500,000, the Cray XC30-AC (air cooled) supercomputer economizes the packaging, networking, cooling and power options of the Cray XC30 system to provide customers with the optimal balance of features and footprint that matches their unique price/performance requirements. The Cray XC30-AC enables technical enterprise HPC users in fields such as manufacturing, life sciences, financial services and energy to apply supercomputing resources towards solving the growing technical and business challenges that can only be addressed with high-end HPC technology. The Cray XC30-AC is not the only Cray solution for technical enterprise customers. The Company's line of industry-standard cluster supercomputer offerings, the Cray CS300 cluster supercomputers, complements the Cray XC30-AC systems and gives customers the ability to choose a Cray solution that best fits the needs of their applications. With Cray XC30-AC and Cray CS300 systems, Cray's portfolio of supercomputers now spans a broad spectrum of customer needs, application performance, price performance and flexibility.

Cray Inc. announced unaudited consolidated earnings results for the first quarter Ended March 31, 2013. For the quarter, total revenue was $79,547,000 against $112,307,000 in the same period a year ago. Loss from operations was $12,704,000 against income from operations of $8,403,000 in the same period a year ago. Loss before income taxes was $12,663,000 against income before income taxes of $8,622,000 in the same period a year ago. Net loss was $7,609,000 or $0.20 per diluted share against net income of $4,964,000 or $0.13 per diluted share in the same period a year ago. Non-GAAP net loss was $8,400,000 or 40.23 per common share against non-GAAP net income of $9,000,000 or $0.24 per common share in the same period a year ago. The company expects revenue to be approximately $500 million for the year. Revenue is expected to ramp quarterly during 2013 with roughly $80 million in the second quarter and about 45% of the annual revenue expected in the fourth quarter. For 2013, overall gross margins are anticipated to be in the mid-30% range. Total operating expenses for 2013 are expected to be in the range of $160 million. Non-GAAP adjustments to pre-tax earnings are anticipated to be over $10 million in 2013, driven by stock-based compensation and acquisition related expenses. Based on this outlook, The company expects to be profitable on a GAAP and non-GAAP basis for 2013. 2013 effective income tax rate is currently projected to be about 40% but is dependent on a number of variables. Based on this outlook, due to Cray's substantial net operating loss carry forwards, the annual income tax provision is expected to be largely non-cash and the effective non-GAAP tax rate is expected to be 7-10%.