GatorMail-Q 1st Quarter 1993 Earnings Media: Frank Parisi (612) 683-7130 Financial: Laura Merriam (612) 683-7395 CRAY RESEARCH REPORTS IMPROVED FIRST QUARTER RESULTS; A STRONG RETURN TO PROFITABILITY Eagan, Minn., April 21, 1993 -- Cray Research, Inc. today reported revenue of $202,597,000, and net earnings of $15,024,000, or $ .58 per share, for the first quarter ended March 31, 1993. This compares with revenue of $165,094,000, net earnings of $3,885,000, and earnings per share of $ .14, for the same period a year ago. John F. Carlson, chairman and chief executive officer, said, "The contract value of orders signed was approximately $124 million compared with $86 million for first quarter 1992. Our backlog at the end of the quarter was approximately $381 million, compared with $417 at year end 1992, and $354 million at the end of first quarter a year ago." Carlson said, "I am pleased with the first quarter results because they indicate that the restructuring efforts adopted in 1992 and our investment in new products are beginning to pay off. Notable acheivements in the quarter included: reducing operating expenses by 10 percent from the same quarter a year ago; improving manufacturing performance and efficiency with 400 fewer people; signing the largest C90 system order outside of the U.S.; adding five new university customers for our entry level product; and announcing the new CRAY C90 and EL98 series of computer systems." Customers accepted systems and upgrades during the quarter with a contract value of about $160 million. Cray Research, Inc. designs, manufactures, markets, and supports high-performance computer systems for scientific and engineering applications. ### CRAY RESEARCH, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED ------------------------------------- March 31, ------------------ Revenue: 1993 1992 --------- ---- ---- Sales ..............................$148,708 98,865 Leased systems ..................... 5,066 17,213 Service fees........................ 48,823 49,016 ------- ------- Total revenue............................ 202,597 165,094 ------- ------- Cost of revenue: Cost of sales....................... 72,341 35,698 Cost of leased systems.............. 3,442 10,262 Cost of services.................... 35,063 35,722 ------- ------- Total cost of revenue............... 110,846 81,732 Gross profit............................ 91,751 83,362 Operating Expenses: Development and Engineering......... 34,383 37,565 Marketing........................... 27,957 32,526 General and administrative.......... 6,611 6,465 ------- ------- Total operating expenses............ 68,951 76,556 ------- ------- Operating income........................ 22,800 6,806 ------- ------- Other income (expense), net.......... (722) (835) ------- ------- Earnings before income taxes............. 22,078 5,971 Income tax expense (benefit)......... (7,054) (2,086) ------- ------- Net earnings............................ $ 15,024 $3,885 ======= ======= Earnings per common and common equivalent share...................... $ 0.58 0.14 ======= ======= Average number of common and common equivalent shares outstanding.......... 26,050 27,142 ======= ======= CRAY RESEARCH, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31 December 31 (In thousands) 1993 1992 ------------------------------------- --------- --------- Assets (Unaudited) ------ Current assets: Cash and equivalents................$ 75,191 $ 54,953 Receivables......................... 118,966 155,797 Inventories......................... 274,187 263,284 Other current assets................ 36,743 31,147 -------- ------- Total current assets................ 505,087 505,181 -------- ------- Long-term receivables.................... 11,669 12,226 Leased systems and spares, net........... 93,771 96,296 Property, plant and equipment, net....... 246,041 257,775 Investments and other assets............. 176,339 149,786 -------- ------- $1,032,907 $1,021,264 ======== ======== Liabilities and Stockholders'Equity Current liabilities: Current installments of long-term debt.$ 6,020 $ 5,389 Accounts payable........................ 31,768 30,739 Accrued expenses........................ 79,418 85,121 Income taxes payable.................... 3,590 4,023 Deferred income and customer advances... 63,763 59,040 -------- ------- Total current liabilities............. 184,559 184,312 Long-term debt,excluding current installs. 105,582 106,402 Other long-term obligations............... 5,569 7,489 Stockholders' equity: Common stock............................ 31,511 31,511 Additional paid-in capital.............. 108,505 109,322 Retained earnings....................... 821,033 806,009 Foreign currency translation adjustments (1,944) (429) Treasury stock, at cost................. (221,908) (223,352) ------- ------- Total stockholders' equity............ 737,197 723,061 ------- ------- $1,032,907 $1,021,264 ======== ========