Cray Inc. (CRAY) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $23.02 million, or $ 0.58 a share in the quarter, against a net profit of $10.86 million, or $0.27 a share in the last year period. On adjusted basis, net loss for the quarter stood at $19.50 million, or $0.49 a share compared with a net profit of $19.50 million, or $0.48 a share in the last year period. Revenue during the quarter plunged 59.54 percent to $77.45 million from $191.41 million in the previous year period. Gross margin for the quarter contracted 395 basis points over the previous year period to 30.47 percent. Operating margin for the quarter stood at negative 36.75 percent as compared to a positive 9.42 percent for the previous year period.
Operating loss for the quarter was $28.46 million, compared with an operating income of $18.03 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $25.60 million compared to operating profit of $21.50 million in prior year period.
"Our performance in the third quarter was highlighted by a number of new installations of supercomputers and storage systems worldwide," said Peter Ungaro, president and chief executive officer of Cray. "While market conditions remain challenging, we are beginning to see early signs of stabilization in certain areas, including in the energy market where we recently installed an additional XC system at PGS, and in the weather and climate market with a major win in the United States. Overall, while our visibility remains limited, our competitive position is strong and we're focused on delivering on our outlook for the rest of the year."
For fiscal year 2016, Cray Inc. forecasts revenue to be in the range of $620 million to $650 million.
Working capital decreases marginally
Cray Inc. has witnessed a decline in the working capital over the last year. It stood at $363.87 million as at Sep. 30, 2016, down 1.97 percent or $7.33 million from $371.19 million on Sep. 30, 2015. Current ratio was at 2.67 as on Sep. 30, 2016, up from 2.42 on Sep. 30, 2015. Cash conversion cycle (CCC) has increased to 232 days for the quarter from 178 days for the last year period. Days sales outstanding went up to 147 days for the quarter compared with 67 days for the same period last year.
Days inventory outstanding has increased to 208 days for the quarter compared with 165 days for the previous year period. At the same time, days payable outstanding went up to 123 days for the quarter from 54 for the same period last year.
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