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SEATTLE, WA -- (Marketwired) -- 07/30/15 -- Global supercomputer leader Cray Inc. (NASDAQ: CRAY) today announced financial results for the second quarter ended June 30, 2015.

All figures in this release are based on U.S. GAAP unless otherwise noted. A reconciliation of GAAP to non-GAAP measures is included in the financial tables in this press release.

Revenue for the second quarter was $186.2 million, which compares with $85.1 million in the second quarter of 2014. Net income for the second quarter was $5.8 million, or $0.14 per diluted share, compared to a net loss of $6.7 million, or $0.18 per diluted share in the second quarter of 2014. Non-GAAP net income was $12.4 million, or $0.30 per diluted share for the second quarter, compared to non-GAAP net loss of $8.6 million, or $0.22 per diluted share for the same period last year.

Overall gross profit margin for the second quarter of 2015 was 27%, compared to 34% for the second quarter of 2014. Total non-GAAP gross profit margin for the second quarter of 2015 was 27%, compared to 35% for the second quarter of 2014.

Operating expenses for the second quarter of 2015 were $40.0 million, compared to $42.8 million for the second quarter of 2014. Non-GAAP operating expenses for the second quarter of 2015 were $37.3 million, compared to $39.9 million for the second quarter of 2014.

Cash, investments and restricted cash was $103 million as of June 30, 2015, compared to $148 million as of March 31, 2015. Working capital increased slightly at the end of the second quarter of 2015 to $355 million compared with $353 million at the end of the first quarter.

"We had a strong second quarter, highlighted by several key customer wins and our new installation at the King Abdullah University of Science and Technology in Saudi Arabia," said Peter Ungaro, president and CEO of Cray. "We also expanded our storage and data management team by hiring a number of development and service engineers from Terascala, adding new skills and capabilities to this growing business. With recent wins at the Bureau of Meteorology in Australia and the Texas Advanced Computing Center, our momentum of new awards has continued and we're well positioned to deliver strong growth for the year."

Outlook
We anticipate revenue for 2015 to be in the range of $715 million. Revenue for the third quarter is expected to be approximately $140 million. Non-GAAP gross margin for 2015 is expected to be in the 30-33% range. Total non-GAAP operating expenses for the year are anticipated to be in the range of $180 million. Based on this outlook, we expect to improve our GAAP and non-GAAP operating profit margin significantly for 2015 as compared to 2014.

Our 2015 effective non-GAAP tax rate is expected to be in the range of 6-10%.

Actual results for any future period are subject to large fluctuations and a wide range of results remains possible given the nature of our business.

Recent Highlights

• In July, Cray was selected by the Bureau of Meteorology in Melbourne, Australia to deliver a new Cray XC40 supercomputer and Sonexion 2000 storage solution. Including future options, the contract totals about $53 million, with installations expected to begin in 2016.
• In July, Cray announced it had been selected by the Texas Advanced Computing Center (TACC) at the University of Texas to deliver a Cray XC40 supercomputer. The new system named "Lonestar5" will have a peak performance of more than one petaflops and will serve as the primary high performance computing resource in the UT Research Cyberinfrastructure initiative.
• In July, Cray announced it hired the majority of employees of Boston-based storage company, Terascala. The new additions strengthen Cray's overall storage and data management expertise.
• In June, Cray announced the establishment of its European, Middle East and Africa (EMEA) headquarters at the Company's new office in Bristol, United Kingdom. Cray continues to expand its presence in the supercomputing and big data markets across the region, and its new headquarters strengthens the Company's commitment to the commercial, academic, and government customers in these countries.
• In May, the Supercomputing Education and Research Center (SERC) at the Indian Institute of Science in Bangalore, India put a new Cray XC40 into production. With more than 1.4 petaflops of compute performance, the Cray supercomputer nicknamed "SahasraT" at SERC is the first petaflop system in India.

Conference Call Information
Cray will host a conference call today, Thursday, July 30, 2015 at 1:30 p.m. PDT (4:30 p.m. EDT) to discuss its second quarter financial results. To access the call, please dial into the conference at least 10 minutes prior to the beginning of the call at (866) 362-9806. International callers should dial (765) 889-6838 and use the conference ID #90966372. To listen to the audio webcast, go to the Investors section of the Cray website at www.cray.com/company/investors.

If you are unable to attend the live conference call, an audio webcast replay will be available in the Investors section of the Cray website for 180 days. A telephonic replay of the call will also be available by dialing (855) 859-2056, international callers dial (404) 537-3406, and entering the conference ID #90966372. The conference call replay will be available for 72 hours, beginning at 4:45 p.m. PDT on Thursday, July 30, 2015.

Use of Non-GAAP Financial Measures
This press release contains "non-GAAP financial measures" under the rules of the U.S. Securities and Exchange Commission. A reconciliation of U.S. generally accepted accounting principles, or GAAP, to non-GAAP results is included in the financial tables included in this press release. Management believes that the non-GAAP financial measures that we have set forth provide additional insight for analysts and investors and facilitate an evaluation of Cray's financial and operational performance that is consistent with the manner in which management evaluates Cray's financial performance. However, these non-GAAP financial measures have limitations as an analytical tool, as they exclude the financial impact of transactions necessary or advisable for the conduct of Cray's business, such as the granting of equity compensation awards, and are not intended to be an alternative to financial measures prepared in accordance with GAAP. Hence, to compensate for these limitations, management does not review these non-GAAP financial metrics in isolation from its GAAP results, nor should investors. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. This non-GAAP information supplements, and is not intended to represent a measure of performance in accordance with, or disclosures required by GAAP. These measures are adjusted as described in the reconciliation of GAAP to non-GAAP numbers at the end of this release, but these adjustments should not be construed as an inference that all of these adjustments or costs are unusual, infrequent or non-recurring. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. Investors are advised to carefully review and consider this non-GAAP information as well as the GAAP financial results that are disclosed in Cray's SEC filings.

Additionally, we have not quantitatively reconciled the non-GAAP guidance measures disclosed under "Outlook" to their corresponding GAAP measures because we do not provide specific guidance for the various reconciling items such as stock-based compensation, adjustments to the provision for income taxes, amortization of intangibles, costs related to acquisitions, purchase accounting adjustments, and gain on significant asset sales, as certain items that impact these measures have not occurred, are out of our control or cannot be reasonably predicted. Accordingly, reconciliations to the non-GAAP guidance measures are not available without unreasonable effort. Please note that the unavailable reconciling items could significantly impact our financial results.

About Cray Inc.
Global supercomputing leader Cray Inc. (NASDAQ: CRAY) provides innovative systems and solutions enabling scientists and engineers in industry, academia and government to meet existing and future simulation and analytics challenges. Leveraging more than 40 years of experience in developing and servicing the world's most advanced supercomputers, Cray offers a comprehensive portfolio of supercomputers and big data storage and analytics solutions delivering unrivaled performance, efficiency and scalability. Cray's Adaptive Supercomputing vision is focused on delivering innovative next-generation products that integrate diverse processing technologies into a unified architecture, allowing customers to meet the market's continued demand for realized performance. Go to www.cray.com for more information.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, including, but not limited to, statements related to Cray's financial guidance and expected operating results and its product development, sales and delivery plans. These statements involve current expectations, forecasts of future events and other statements that are not historical facts. Inaccurate assumptions as well as known and unknown risks and uncertainties can affect the accuracy of forward-looking statements and cause actual results to differ materially from those anticipated by these forward-looking statements. Factors that could affect actual future events or results include, but are not limited to, the risk that Cray does not achieve the operational or financial results that it expects, the risk that the systems ordered by customers are not delivered when expected, do not perform as expected once delivered or have technical issues that must be corrected before acceptance, the risk that the acceptance process for delivered systems is not completed, or customer acceptances are not received, when expected or at all, the risk that Cray's big data products, including storage, are not as successful as expected, the risk that Cray is not able to successfully complete its planned product development efforts in a timely fashion or at all, the risk that certain customers do not make expected future optional purchases under their current contracts, the risk that Cray is not able to achieve anticipated gross margin or expense levels, the risk that Cray will not be able to secure orders for Cray systems to be delivered and accepted in 2015 when or at the levels expected and such other risks as identified in Cray's quarterly report on Form 10-Q for the period ended June 30, 2015, and from time to time in other reports filed by Cray with the U.S. Securities and Exchange Commission. You should not rely unduly on these forward-looking statements, which apply only as of the date of this release. Cray undertakes no duty to publicly announce or report revisions to these statements as new information becomes available that may change Cray's expectations.

CRAY, and the stylized CRAY mark and SONEXION are registered trademarks of Cray Inc. in the United States and other countries, and the XC family of supercomputers is a trademark of Cray Inc. Other trademarks used in this report are the property of their respective owners.

                         CRAY INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            (Unaudited and in thousands, except per share data)

                                  Three Months Ended     Six Months Ended
                                       June 30,              June 30,
                                 --------------------  --------------------
                                    2015       2014       2015       2014
                                 ---------  ---------  ---------  ---------
Revenue:
  Product                        $ 157,937  $  61,748  $ 210,678  $  91,763
  Service                           28,224     23,399     55,127     48,494
                                 ---------  ---------  ---------  ---------
    Total revenue                  186,161     85,147    265,805    140,257
                                 ---------  ---------  ---------  ---------
Cost of revenue:
  Cost of product revenue          120,789     43,967    161,545     67,939
  Cost of service revenue           15,787     12,176     30,639     25,377
                                 ---------  ---------  ---------  ---------
    Total cost of revenue          136,576     56,143    192,184     93,316
                                 ---------  ---------  ---------  ---------
      Gross profit                  49,585     29,004     73,621     46,941
                                 ---------  ---------  ---------  ---------
Operating expenses:
  Research and development, net     20,106     24,189     42,293     46,810
  Sales and marketing               13,412     13,259     25,964     25,035
  General and administrative         6,435      5,316     12,575     10,729
                                 ---------  ---------  ---------  ---------
    Total operating expenses        39,953     42,764     80,832     82,574
                                 ---------  ---------  ---------  ---------
      Income (loss) from
       operations                    9,632    (13,760)    (7,211)   (35,633)
Other income (expense), net           (258)      (337)       486       (983)
Interest income, net                   413         84        777        145
                                 ---------  ---------  ---------  ---------
      Income (loss) before
       income taxes                  9,787    (14,013)    (5,948)   (36,471)
Income tax (expense) benefit        (4,006)     7,265      2,335     16,785
                                 ---------  ---------  ---------  ---------
      Net income (loss)          $   5,781  $  (6,748) $  (3,613) $ (19,686)
                                 =========  =========  =========  =========
    Basic net income (loss) per
     common share                $    0.15  $   (0.18) $   (0.09) $   (0.51)
                                 =========  =========  =========  =========
    Diluted net income (loss)
     per common share            $    0.14  $   (0.18) $   (0.09) $   (0.51)
                                 =========  =========  =========  =========
    Basic weighted average
     shares outstanding             39,104     38,509     39,053     38,414
                                 =========  =========  =========  =========
    Diluted weighted average
     shares outstanding             40,759     38,509     39,053     38,414
                                 =========  =========  =========  =========


                         CRAY INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED BALANCE SHEETS
             (Unaudited and in thousands, except share amounts)

                                                  June 30,     December 31,
                                                    2015           2014
                                               -------------  -------------
ASSETS
Current assets:
  Cash and cash equivalents                    $      68,175  $     112,633
  Restricted cash                                     16,834         16,874
  Short-term investments                              13,304         16,289
  Accounts and other receivables, net                136,680        165,113
  Inventory                                          221,197        143,632
  Deferred tax asset                                  37,403         36,073
  Prepaid expenses and other current assets           24,199         17,948
                                               -------------  -------------
    Total current assets                             517,792        508,562

Long-term investments                                  4,427             --
Long-term investment in sales-type lease, net         26,133         31,089
Property and equipment, net                           34,677         34,793
Service spares, net                                    2,317          1,868
Goodwill                                              14,182         14,182
Intangible assets other than goodwill, net             3,664          3,895
Deferred tax assets                                   42,183         41,414
Other non-current assets                              14,450         15,631
                                               -------------  -------------
    TOTAL ASSETS                               $     659,825  $     651,434
                                               =============  =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Accounts payable                             $      77,787  $      48,699
  Accrued payroll and related expenses                 6,721         16,054
  Other accrued liabilities                            4,857         16,285
  Deferred revenue                                    73,736         65,910
                                               -------------  -------------
    Total current liabilities                        163,101        146,948

Long-term deferred revenue                            36,183         47,588
Other non-current liabilities                          2,843          3,044
                                               -------------  -------------
    TOTAL LIABILITIES                                202,127        197,580

Shareholders' equity:
  Preferred stock -- Authorized and
   undesignated, 5,000,000 shares; no shares
   issued or outstanding                                  --             --
  Common stock and additional paid-in capital,
   par value $.01 per share -- Authorized,
   75,000,000 shares; issued and outstanding
   40,804,481 and 40,822,377 shares,
   respectively                                      605,105        598,390
  Accumulated other comprehensive income               7,636          6,503
  Accumulated deficit                               (155,043)      (151,039)
                                               -------------  -------------
    TOTAL SHAREHOLDERS' EQUITY                       457,698        453,854
                                               -------------  -------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $     659,825  $     651,434
                                               =============  =============


                         CRAY INC. AND SUBSIDIARIES
     Reconciliation of Selected U.S. GAAP Measures to non-GAAP Measures
                    (Unaudited; in millions, except EPS)

                                    Three Months Ended June 30, 2015
                           -------------------------------------------------
                             Net     Operating   Diluted   Gross   Operating
                            Income    Income       EPS     Profit  Expenses
                           -------  ----------  --------  ------- ----------
GAAP                       $   5.8  $      9.6  $   0.14  $  49.6 $     40.0

Share-based
 compensation          (1)     2.8         2.8                0.2        2.6
Purchase accounting
 adjustments           (2)     0.1         0.1                0.1         --
Amortization of
 acquired intangibles  (2)     0.6         0.6                0.5        0.1
Items impacting tax
 provision             (3)     3.1
                           -------  ----------  --------  ------- ----------
Total reconciling
 items                     $   6.6  $      3.5  $   0.16  $   0.8 $      2.7

Non-GAAP                   $  12.4  $     13.1  $   0.30  $  50.4 $     37.3
                           =======  ==========  ========  ======= ==========


                                    Three Months Ended June 30, 2014
                           -------------------------------------------------
                             Net     Operating   Diluted   Gross   Operating
                             Loss      Loss        EPS     Profit  Expenses
                           -------  ----------  --------  ------- ----------
GAAP                       $  (6.7) $    (13.8) $  (0.18) $  29.0 $     42.8

Share-based
 compensation          (1)     2.9         2.9                0.1        2.8
Purchase accounting
 adjustments           (2)     0.2         0.2                0.2         --
Amortization of
 acquired intangibles  (2)     0.6         0.6                0.5        0.1
Items impacting tax
 provision             (3)    (5.6)
                           -------  ----------  --------  ------- ----------
Total reconciling
 items                     $  (1.9) $      3.7  $  (0.04) $   0.8 $      2.9

Non-GAAP                   $  (8.6) $    (10.1) $  (0.22) $  29.8 $     39.9
                           =======  ==========  ========  ======= ==========

Notes
(1) Adjustments to exclude non-cash expenses related to share-based
compensation
(2) Adjustments to exclude amortization of acquired intangible and other
intangible assets and other acquisition-related charges
(3) Adjustments associated with the tax impact on reconciling items,
benefits related to Cray's net operating loss carryforwards and changes in
Cray's valuation allowance held against deferred tax assets

                         CRAY INC. AND SUBSIDIARIES
     Reconciliation of Selected U.S. GAAP Measures to non-GAAP Measures
                    (Unaudited; in millions, except EPS)

                                     Six Months Ended June 30, 2015
                           -------------------------------------------------
                             Net     Operating
                            Income    Income     Diluted   Gross   Operating
                            (Loss)    (Loss)       EPS     Profit  Expenses
                           -------  ----------  --------  ------- ----------
GAAP                       $  (3.6) $     (7.2) $  (0.09) $  73.6 $     80.8

Share-based
 compensation          (1)     5.9         5.9                0.3        5.6
Purchase accounting
 adjustments           (2)     0.3         0.3                0.3         --
Amortization of
 acquired intangibles  (2)     1.2         1.2                1.0        0.2
Items impacting tax
 provision             (3)    (2.4)
                           -------  ----------  --------  ------- ----------
Total reconciling
 items                     $   5.0  $      7.4  $   0.13  $   1.6 $      5.8

Non-GAAP                   $   1.4  $      0.2  $   0.04  $  75.2 $     75.0
                           =======  ==========  ========  ======= ==========


                                     Six Months Ended June 30, 2014
                           -------------------------------------------------
                             Net     Operating   Diluted   Gross   Operating
                             Loss      Loss        EPS     Profit  Expenses
                           -------  ----------  --------  ------- ----------
GAAP                       $ (19.7) $    (35.6) $  (0.51) $  46.9 $     82.6

Share-based
 compensation          (1)     5.4         5.4                0.2        5.2
Purchase accounting
 adjustments           (2)     0.3         0.3                0.3         --
Amortization of
 acquired intangibles  (2)     1.2         1.2                1.0        0.2
Items impacting tax
 provision             (3)   (13.5)
                           -------  ----------  --------  ------- ----------
Total reconciling
 items                     $  (6.6) $      6.9  $  (0.18) $   1.5 $      5.4

Non-GAAP                   $ (26.3) $    (28.7) $  (0.69) $  48.4 $     77.2
                           =======  ==========  ========  ======= ==========

Notes
(1) Adjustments to exclude non-cash expenses related to share-based
compensation
(2) Adjustments to exclude amortization of acquired intangible and other
intangible assets and other acquisition-related charges
(3) Adjustments associated with the tax impact on reconciling items,
benefits related to Cray's net operating loss carryforwards and changes in
Cray's valuation allowance held against deferred tax assets

                         CRAY INC. AND SUBSIDIARIES
     Reconciliation of Selected U.S. GAAP Measures to non-GAAP Measures
                (Unaudited; in millions, except percentages)

                                    Three Months Ended June 30, 2015
                             ----------------------------------------------
                                 Product         Service          Total
                             --------------  --------------  --------------
                              Gross   Gross   Gross   Gross   Gross   Gross
                              Profit Margin   Profit Margin   Profit Margin
                             ------- ------  ------- ------  ------- ------
GAAP                         $  37.1     24% $  12.5     44% $  49.6     27%

Share-based compensation (1)     0.1             0.1             0.2
Purchase accounting
 adjustments             (2)     0.1                             0.1
Amortization of acquired
 intangibles             (2)     0.5                             0.5
                             ------- ------  ------- ------  ------- ------
Total reconciling items      $   0.7     --% $   0.1      1% $   0.8     --%

Non-GAAP                     $  37.8     24% $  12.6     45% $  50.4     27%
                             ======= ======  ======= ======  ======= ======


                                    Three Months Ended June 30, 2014
                             ----------------------------------------------
                                 Product         Service          Total
                             --------------  --------------  --------------
                              Gross   Gross   Gross   Gross   Gross   Gross
                              Profit Margin   Profit Margin   Profit Margin
                             ------- ------  ------- ------  ------- ------
GAAP                         $  17.8     29% $  11.2     48% $  29.0     34%

Share-based compensation (1)      --             0.1             0.1
Purchase accounting
 adjustments             (2)     0.2              --             0.2
Amortization of acquired
 intangibles             (2)     0.5              --             0.5
                             ------- ------  ------- ------  ------- ------
Total reconciling items      $   0.7      1% $   0.1     --% $   0.8      1%

Non-GAAP                     $  18.5     30% $  11.3     48% $  29.8     35%
                             ======= ======  ======= ======  ======= ======

Notes
(1) Adjustments to exclude non-cash expenses related to share-based
compensation
(2) Adjustments to exclude amortization of acquired intangible and other
intangible assets and other acquisition-related charges


                         CRAY INC. AND SUBSIDIARIES
     Reconciliation of Selected U.S. GAAP Measures to non-GAAP Measures
                (Unaudited; in millions, except percentages)

                                     Six Months Ended June 30, 2015
                             ----------------------------------------------
                                 Product         Service          Total
                             --------------  --------------  --------------
                              Gross   Gross   Gross   Gross   Gross   Gross
                              Profit Margin   Profit Margin   Profit Margin
                             ------- ------  ------- ------  ------- ------
GAAP                         $  49.1     23% $  24.5     44% $  73.6     28%

Share-based compensation (1)     0.2             0.1             0.3
Purchase accounting
 adjustments             (2)     0.3                             0.3
Amortization of acquired
 intangibles             (2)     1.0                             1.0
                             ------- ------  ------- ------  ------- ------
Total reconciling items      $   1.5      1% $   0.1      1% $   1.6     --%

Non-GAAP                     $  50.6     24% $  24.6     45% $  75.2     28%
                             ======= ======  ======= ======  ======= ======


                                     Six Months Ended June 30, 2014
                             ----------------------------------------------
                                 Product         Service          Total
                             --------------  --------------  --------------
                              Gross   Gross   Gross   Gross   Gross   Gross
                              Profit Margin   Profit Margin   Profit Margin
                             ------- ------  ------- ------  ------- ------
GAAP                         $  23.8     26% $  23.1     48% $  46.9     33%

Share-based compensation (1)      --             0.2             0.2
Purchase accounting
 adjustments             (2)     0.3              --             0.3
Amortization of acquired
 intangibles             (2)     1.0              --             1.0
                             ------- ------  ------- ------  ------- ------
Total reconciling items      $   1.3      1% $   0.2     --% $   1.5      2%

Non-GAAP                     $  25.1     27% $  23.3     48% $  48.4     35%
                             ======= ======  ======= ======  ======= ======

Notes
(1) Adjustments to exclude non-cash expenses related to share-based
compensation
(2) Adjustments to exclude amortization of acquired intangible and other
intangible assets and other acquisition-related charges


                         CRAY INC. AND SUBSIDIARIES
            Reconciliation of GAAP to non-GAAP Net Income (Loss)
     (Unaudited; in millions except per share amounts and percentages)

                                     Three Months Ended   Six Months Ended
                                          June 30,            June 30,
                                     ------------------  ------------------
                                       2015      2014      2015      2014
                                     --------  --------  --------  --------
GAAP Net Income (Loss)               $    5.8  $   (6.7) $   (3.6) $  (19.7)

Non-GAAP adjustments impacting
 gross profit:
  Share-based compensation       (1)      0.2       0.1       0.3       0.2
  Purchase accounting
   adjustments                   (2)      0.1       0.2       0.3       0.3
  Amortization of acquired and
   other intangibles             (2)      0.5       0.5       1.0       1.0
                                     --------  --------  --------  --------
Total adjustments impacting
 gross profit                             0.8       0.8       1.6       1.5

Non-GAAP gross margin percentage           27%       35%       28%       35%

Non-GAAP adjustments impacting
 operating expenses:
  Share-based compensation       (1)      2.6       2.8       5.6       5.2
  Amortization of acquired
   intangibles                   (2)      0.1       0.1       0.2       0.2
                                     --------  --------  --------  --------
Total adjustments impacting
 operating expenses                       2.7       2.9       5.8       5.4

Items impacting tax provision    (3)      3.1      (5.6)     (2.4)    (13.5)
                                     --------  --------  --------  --------
Non-GAAP Net Income (Loss)           $   12.4  $   (8.6) $    1.4  $  (26.3)
                                     ========  ========  ========  ========

Non-GAAP Diluted Net Income
 (Loss) per common share             $   0.30  $  (0.22) $   0.04  $  (0.69)
                                     ========  ========  ========  ========

Diluted weighted average shares  (4)     40.8      38.5      40.7      38.4

Notes
(1) Adjustments to exclude non-cash expenses related to share-based
compensation
(2) Adjustments to exclude amortization of acquired intangible and other
intangible assets and other acquisition-related charges
(3) Adjustments associated with the tax impact on reconciling items,
benefits related to Cray's net operating loss carryforwards and changes in
Cray's valuation allowance held against deferred tax assets
(4) Cray recorded a GAAP net loss for the six months ended June 30, 2015 and
non-GAAP net income for the same period. As such, the diluted weighted
average shares number on the Reconciliation of GAAP to non-GAAP Net Income
(Loss) differs from the amount on Cray's Condensed Consolidated Statement of
Operations by the weighted average number of potential common shares
outstanding, including the additional dilution related to conversion of
stock options, unvested restricted stock and unvested restricted stock units
as computed under the treasury stock method