Supercomputer company Cray has announced financial results for the year and fourth quarter ended December 31, 2012. For 2012, Cray reported total revenue of $421.1 million, which compares with $236.0 million for 2011. Net income for 2012 was $161.2 million, or $4.27 per share, compared to $14.3 million, or 40 cents per share, for 2011. Income from operations for 2012 was $168.1 million compared to $1.2 million for 2011.
For the fourth quarter of 2012, revenue was $188.8 million compared to $91.6 million in the prior year period. The company reported net income for the fourth quarter of $14.0 million, or 36 cents per share, compared to $31.0 million, or 85 cents per share, in the fourth quarter of 2011.
Overall gross profit margin for 2012 was 36 percent compared to 40 percent in 2011. Product margin for 2012 was 35 percent, consistent with 2011 results; service margin for 2012 was 43 percent compared to 49 percent for 2011.
Operating expenses for 2012 were $122.2 million compared to $93.2 million in 2011. Compared to 2011, 2012 operating expenses were impacted by higher incentive based compensation, increased investments in our storage and big data initiatives, fewer R&D co-funding credits and additional expenses which resulted in the company’s acquisition of Appro International.
As of December 31, 2012, cash and investments totaled $323 million.
Peter Ungaro (President and CEO, Cray): We had a great year across the board in 2012, highlighted by the completion of the largest supercomputer and storage system in our company’s history. We grew substantially in 2012, posting record revenue and operating profit for the year, and have put ourselves on a path to continue to grow faster than our overall market.
Cray expects revenue to be approximately $500 million for the year. Revenue is expected to ramp quarterly during 2013 with roughly $70 million in the first quarter and about 45% of the annual revenue expected in the fourth quarter. 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, which includes approximately $8 million in stock-based compensation and amortization of purchased intangibles.