Cray Inc. (NASDAQ:CRAY) Q4 2018 Earnings Conference Call Transcript

Feb 12, 2019 • 04:30 pm ET


Cray Inc. (NASDAQ:CRAY) Q4 2018 Earnings Conference Call Transcript


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Good afternoon. My name is Erica and I will be your conference operator today.

At this time, I would like to welcome everyone to the Fourth Quarter and Full Year 2018 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

Mr. Paul Hiemstra, Vice President and Treasurer, you may begin your conference.

Paul Hiemstra

Thank you. Good afternoon. I'd like to thank everyone for joining us today. Participating from Cray are Peter Ungaro, President and Chief Executive Officer; and Brian Henry, Executive Vice President and Chief Financial Officer.

Today's press release is available on the Investor Relations section of our website at This call is being broadcast live on the Internet and recorded for replay purposes. A telephonic replay will be available shortly after the call. You can access it by dialing 1-855-859-2056. International callers can dial 1-404-537-3406, you must then enter the access code 1869079. A replay will also be available in the Investor Relations section of the Cray website for 180 days.

I would like to remind each of you that today's conference call will contain forward-looking statements that are based on our current expectations. Forward-looking statements include statements about our financial guidance and expected future operating results, our product development, sales and delivery plans, the future growth of markets for our products, our ability to expand and penetrate our addressable market and other statements that are not historical facts. Those statements are only predictions and actual results may materially vary from those projected. Please refer to Cray's earnings press release dated today and Quarterly Report (ph) on Form 10-K for the period ended December 31st 2018 as well as Cray's documents filed with the SEC from time to time, concerning factors that could affect the Company and these forward-looking statements.

Our presentation includes certain non-GAAP financial measures in an effort to provide additional information to investors. Non-GAAP measures, other than non-GAAP outlook have been reconciled to their related GAAP measures in accordance with SEC rules. Our non-GAAP measures adjust for certain non-cash unusual and infrequent items included in our GAAP results. Typical adjusting items include, stock-based compensation, amortization of purchased and other intangibles and purchase accounting adjustments. When applicable, we also adjust our book tax provision for certain items including the impact of non-cash items such as benefits principally related to our net operating loss. You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures and a discussion of our non-GAAP outlook in our earnings press release, which is posted on our website and which is included with a related 8-K furnished to the SEC.

With that, I would like to turn the call over to Peter Ungaro.

Peter J. Ungaro

Thanks, Paul and thank you all for joining the call today.

I'll start with some comments on our fourth quarter and full year performance, then turn it over to Brian, who will go through our financial