Cray option buy back update

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Remember back at the end of February when insideHPC broke the news that Cray was offering to buy back drowning options from employees as a gesture of goodwill? I thought you wouldn’t…so here is the link. Basically the company offered to buy back employee options for prices ranging from $0.10 to $0.801 per option, depending upon the strike value of the options being repurchased.

That offer to Cray employees expired on the 20th of March, and Cray has filed an amended schedule TO that reflects the total cost of the buyback as $668,699.65 (see page 2 of the filing).

The offering period expired at 11:59 p.m., Pacific Time, on March 20, 2009. Pursuant to the Offer to Purchase, options to purchase an aggregate of 1,843,474 shares of the Company’s common stock were validly tendered and not withdrawn, and the Company has accepted for repurchase such options. Each eligible optionee who validly tendered eligible options pursuant to the Offer to Purchase will receive cash payments in the range of $0.10 to $0.801 per option, as set forth in the Statement, for each eligible option accepted for repurchase. The Company will promptly make such cash payments in the aggregate amount of $668,699.65.

Again, Cray in no way had to do this, and from my understanding (and from talking with company CEO Pete Ungaro) they did this primarily as a goodwill gesture for their employees. This really benefits the guys and gals who have hung around long enough to have options in the $40s, who never really expected to have those options above water again, and who kept performing anyway. This is a strong leadership action from a company that is showing — not just saying — that its employees are important.


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