Cray Inc. (cray)

[chmcnfunds]

From SmallCap Network:

Quote:
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CRAY Confirms it's a Good Stock to Own. Yelp Takes Center Stage.

Yesterday after the close, Global supercomputer leader and SmallCap Network Featured Stock Cray Inc. (CRAY) announced their financial results for the second quarter ended June 30, 2012. Revenue for the quarter was $84.2 million compared to $67.9 million in the prior year period. The Company reported net income for the quarter of $147.4 million or $3.91 diluted income per share compared to a net loss of ($3.0 million) or ($0.08) per share in the second quarter of 2011. All in all, strong results. You can read the press release in its entirety here: http://finance.yahoo.com/news/cray-inc-reports-strong-second-200500000.html.

More importantly, the Company suggested a wide range of results remains possible for 2012 by suggesting many variables may impact their results. One significant item is the timing of a single planned customer acceptance, which would represent approximately $150 million in product revenue. This is the largest system the Company has ever built and its acceptance is dependent on several items, including third-party components, all on a tight timeline due to previous delays. Assuming acceptance of this system occurs in 2012, as currently planned, the Company continues to anticipate total revenue to be in the range of $430-$450 million for the year.

Since shares of CRAY have performed extremely well in the face of a bad market in recent months, we wouldn't be overly concerned about its 5% dip today. The stock is up nicely on the year, and yesterday's earnings report confirms the Company is growing and doing well. We'd use this as a potential buying opportunity rather than focusing on their somewhat cautious outlook as a negative. It's just smart management of expectations on their part, while their financials continue to look solid.
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CRAY