first-quarter loss widened sharply from a year ago and the company said it has been threatened with delisting by the
Nasdaq Stock Market
Cray lost $21 million, or 24 cents a share, in the quarter, compared with a loss of $3.8 million, or 5 cents a share, last year. Revenue fell 11% from last year to $37.6 million.
The company blamed supercomputer deals on which revenue wasn't recognized in the first quarter, plus an unusually higher research expense, for the wider loss.
The company also received a notice of pending delisting from the Nasdaq, citing its failure to include an auditor's opinion on internal control over financial reporting in its annual report, filed May 3. Cray previously said its old auditor, Deloitte & Touche, declined to stand for re-election for the 2005 financial year.
An "E" will be added to the end of Cray's ticker symbol starting Tuesday to denote the delisting notice. Cray said it will request an appeal hearing on the delisting decision and expects to remain listed on the Nasdaq National Market until the hearing is held.
Revenue in Cray's first quarter didn't include several systems that were shipped and installed, but on which revenue wasn't recognized "pending customer acceptances." Cray expects to book the revenue in the second and third quarters. The company's 12-month product backlog was $127 million at the end of the period, up from $44 million at Dec. 31, 2004.
"Bookings continue to grow and demonstrate that our three new products, the Cray X1E, XT3 and XD1 systems, are beginning to gain traction in their respective markets," the company said.
In after-hours trading, Cray fell 31 cents, or 15%, to $1.77.