Comments on: Cray announces Q3, posts loss http://insidehpc.com/2009/10/29/cray-announces-q3-posts-loss/ HPC News Without the Noise for Supercomputing Professionals | insideHPC Sun, 19 May 2013 10:46:54 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: Cray CEO responds: “Yes, we can make money at the high end of HPC.” | insideHPC.com http://insidehpc.com/2009/10/29/cray-announces-q3-posts-loss/#comment-192128 Cray CEO responds: “Yes, we can make money at the high end of HPC.” | insideHPC.com Thu, 12 Nov 2009 15:15:44 +0000 http://insidehpc.com/?p=8332#comment-192128 [...] the end of October Cray announced financial results for their fiscal third quarter, ended Sep 30. Revenue was up, but the company reported a loss for [...] [...] the end of October Cray announced financial results for their fiscal third quarter, ended Sep 30. Revenue was up, but the company reported a loss for [...]

]]> By: Frank http://insidehpc.com/2009/10/29/cray-announces-q3-posts-loss/#comment-189697 Frank Mon, 02 Nov 2009 02:36:27 +0000 http://insidehpc.com/?p=8332#comment-189697 Agreed, we need aircraft carriers but let’s face it these companies make other products/technology and make money because their business is diversified. While they may have had a good quarter nothing has been sustained they just booked in one quarter at the expense of the other. Looking at the past financials Cray lost money in ’06, ’07 and ’08 so I fail to see the logic that it will get better on a consistent basis. Is the government paying too much for the technology and do we really need the Cray’s and SGI’s of the world? Can our wallets take this?? Maybe we should have a Tech Czar and regulate the CEO pay! Agreed, we need aircraft carriers but let’s face it these companies make other products/technology and make money because their business is diversified.

While they may have had a good quarter nothing has been sustained they just booked in one quarter at the expense of the other. Looking at the past financials Cray lost money in ’06, ’07 and ’08 so I fail to see the logic that it will get better on a consistent basis.

Is the government paying too much for the technology and do we really need the Cray’s and SGI’s of the world? Can our wallets take this?? Maybe we should have a Tech Czar and regulate the CEO pay!

]]> By: John West http://insidehpc.com/2009/10/29/cray-announces-q3-posts-loss/#comment-189435 John West Sat, 31 Oct 2009 13:22:46 +0000 http://insidehpc.com/?p=8332#comment-189435 Dell and HP are a different kind of company, and the comparison isn't warranted. They both sell technology, but Cray only sells one kind of technology while the other companies have a very diversified portfolio and make (or lose) money for reasons largely unrelated to HPC. Your bigger question -- is a business model that focuses solely on the high end of HPC flawed -- is an interesting (if not new) one. The technology is clearly required as an engine of innovation, not only in economic terms but in areas where we want to lead the world nationally (nuclear stockpile, weapons development, etc.). We also require aircraft carriers, and there is no business model for those: the industry is sustained solely by governments around the world for reasons other than economic efficacy. Back to the question of Cray and whether they can consistently make money (because they have been profitable in various quarters in the recent past), I think they can. The company has been doing a lot of rebuilding, and is in a sound financial position now with little outstanding debt and excellent management. But it would make for an interesting article to talk with pure play HPC CEOs and get their take on their own business. Dell and HP are a different kind of company, and the comparison isn’t warranted. They both sell technology, but Cray only sells one kind of technology while the other companies have a very diversified portfolio and make (or lose) money for reasons largely unrelated to HPC.

Your bigger question — is a business model that focuses solely on the high end of HPC flawed — is an interesting (if not new) one. The technology is clearly required as an engine of innovation, not only in economic terms but in areas where we want to lead the world nationally (nuclear stockpile, weapons development, etc.). We also require aircraft carriers, and there is no business model for those: the industry is sustained solely by governments around the world for reasons other than economic efficacy.

Back to the question of Cray and whether they can consistently make money (because they have been profitable in various quarters in the recent past), I think they can. The company has been doing a lot of rebuilding, and is in a sound financial position now with little outstanding debt and excellent management. But it would make for an interesting article to talk with pure play HPC CEOs and get their take on their own business.

]]> By: Frank http://insidehpc.com/2009/10/29/cray-announces-q3-posts-loss/#comment-189246 Frank Fri, 30 Oct 2009 13:17:17 +0000 http://insidehpc.com/?p=8332#comment-189246 Yes they are in the high end but why make excuses for the fact that they can’t make money – maybe greater diversification is needed or their business model is flawed. Almost every quarter there is some write down, order/product delay, higher cost followed by the CFO saying if we didn’t have these we would have been profitable. Last night I missed the lottery by one number therefore I should consider myself a millionaire. Be honest, the business model is flawed and a net loss for 2009 will happen followed by some words of wisdom around, “we have this one time fill in the blank excuse but we would have made money”. If Dell, SGI and HP have a hard time growing why should anyone have faith that Pete can deliver a profitable company that can grow? Yes they are in the high end but why make excuses for the fact that they can’t make money – maybe greater diversification is needed or their business model is flawed. Almost every quarter there is some write down, order/product delay, higher cost followed by the CFO saying if we didn’t have these we would have been profitable. Last night I missed the lottery by one number therefore I should consider myself a millionaire. Be honest, the business model is flawed and a net loss for 2009 will happen followed by some words of wisdom around, “we have this one time fill in the blank excuse but we would have made money”.

If Dell, SGI and HP have a hard time growing why should anyone have faith that Pete can deliver a profitable company that can grow?

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