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June 4, 2007 10:49 AM
Posted by Benjamin J. Romano
Seattle-based supercomputer maker Cray announced that it's expecting revenue this year at or below $200 million.
"While there continues to be a wide range of potential outcomes ... consequently, there is an increased probability that the company will not achieve profitability for the year," company management wrote.
Cray shares were down more than 12 percent, 96 cents, to $6.99 in early afternoon trading on the Nasdaq.
It sounds like the current year revenue slide is more of a delay than a disappearance altogether. Cray attributes the downgrade to "timing of volume parts availability" for its quad-core Cray XT4 systems. The company expects to begin selling these systems in the fourth quarter, but "the timing is such that most or all of the planned acceptances, and associated revenue recognition, will likely be deferred until early 2008."
Peter Ungaro, Cray's CEO, said in a statement the company is disappointed that two of its top goals -- growth and profitability -- are now "in jeopardy for 2007."