Cray Inc. (CRAY) saw its loss widen to $19.22 million, or $0.48 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $5.01 million, or $0.13 a share. On the other hand, adjusted net loss for the quarter widened to $28.40 million, or $0.71 a share from a loss of $5.30 million or $0.13 a share, a year ago.
Revenue during the quarter plunged 44.07 percent to $59.03 million from $105.55 million in the previous year period. Gross margin for the quarter expanded 247 basis points over the previous year period to 40.33 percent. Operating margin for the quarter stood at negative 54.68 percent as compared to a negative 8.73 percent for the previous year period.
Operating loss for the quarter was $32.28 million, compared with an operating loss of $9.22 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $29.40 million compared to operating loss of $6 million in prior year period.
"As expected, we got off to a slower start to the year," said Peter Ungaro, president and chief executive officer of Cray. "While activity at the high-end of the supercomputing market continues to be relatively slow and our visibility remains limited, our competitive position remains strong. We were recently awarded several significant new contracts in the worldwide weather and climate segment - a market where our leadership position continues to expand. We also released our 2017 revenue outlook today which, driven by the ongoing market conditions, is significantly lower than where we finished 2016. Despite this, we continue to be confident in our ability to drive long-term growth over time."
For the second-quarter 2017, Cray Inc. projects revenue to be $60 million.
For fiscal year 2017, Cray Inc. forecasts revenue to be in the range of $400 million to $450 million.
Working capital declines
Cray Inc. has witnessed a decline in the working capital over the last year. It stood at $349.71 million as at Mar. 31, 2017, down 16.42 percent or $68.72 million from $418.43 million on Mar. 31, 2016. Current ratio was at 3.95 as on Mar. 31, 2017, up from 3.78 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 207 days for the quarter from 192 days for the last year period. Days sales outstanding went up to 137 days for the quarter compared with 80 days for the same period last year.
Days inventory outstanding has decreased to 145 days for the quarter compared with 163 days for the previous year period. At the same time, days payable outstanding went up to 75 days for the quarter from 51 for the same period last year.
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