Jim Rottsolk Chairman, CEO & President Scott Poteracki Vice President & CFO
September 2004 Cray Inc. SafeSafe HarborHarbor StatementStatement
The statements set forth in this presentation include forward-looking statements that involve risk and uncertainties. The Company wished to caution that a number of factors could cause actual results to differ materially from those in the forward-looking statements. These and other factors which could cause actual results to differ materially from those in the forward-looking statements are discussed in the Company’s filings with the Securities and Exchange Commission.
September 2004 Cray Inc. Slide 2 AA LongLong andand ProudProud HistoryHistory
NASDAQ: CRAY Headquarters: Seattle, WA Marketplace: High Performance Computing Presence: Systems in over 30 countries Employees: Over 800
BuildingBuilding Systems Systems Engineered Engineered for for Performance Performance Seymour Cray Founded Cray Research 1972 The Father of Supercomputing
Cray T3E System (1996) Cray X1 Cray-1 System (1976) Cray-X-MP System (1982) Cray Y-MP System (1988) World’s Most Successful MPP 8 of top 10 Fastest First Supercomputer First Multiprocessor Supercomputer First GFLOP Computer First TFLOP Computer Computer in the World
September 2004 Cray Inc. Slide 3 FinancialFinancial SummarySummary
2002-2003: New Product Introduction Successful introduction and ramp of Cray X1 product Grew market share from 4% to 20% in two years
2004: Transition Year One product supercomputer company to three product HPC company Orders picked up in Q2; backlog increased by $50 M to $126 M Recently revised guidance to full year revenue of less than $200 M Announced restructuring: reduced expenditures by 20% Expect return to profitability by Q1 2005
September 2004 Cray Inc. Slide 4 RecentRecent AnnouncementsAnnouncements
Cray X1 Red Storm Cray XD1
PITTSBURGH SU PERCOMPPERCOMPUPERCOM PUTING UTING TING CENTER
Undisclosed Undisclosed (Reseller)
Cray Completes OctigaBay Acquisition
Cray Tops HPC Challenge Benchmark Scores
September 2004 Cray Inc. Slide 5 20052005 FinancialFinancial OutlookOutlook
2005: Growth Year as HPC Leadership Company Three highly anticipated new products in full-swing Significant top and bottom-line growth opportunity Positive EPS affect via leveraged business model & recent restructuring Continued product innovation focused on high performance computing
Cray X1E Red Storm-based Cray XD1
Upgrade to Cray X1 Largest x86 system in the world Scales to over 512 processors Double performance & density Based on contract with Sandia Supercomputer from under $100K First shipment end of 2004 First shipment Q4 2004 Commercial release Oct. 2004
September 2004 Cray Inc. Slide 6 HPCHPC ComputingComputing ChallengesChallenges
Manufacturing Life Sciences Earth Sciences
Modeling new designs Drug discovery Predicting weather HPC Computing Challenge Oil & Gas Scale (computing and data) Scientific Research Performance Manageability/Reliability
Technology Limitations Bandwidth Bottleneck Exploring the Earth Single system management Exploring the Universe System-wide Latency
September 2004 Cray Inc. Slide 7 MarketMarket OpportunityOpportunity
TakingTaking Success Success t et Formula to the rk Formula to the ar Cray XD1 Broader HPC M BroaderBroader HPCHPC le $7,000 b Market sa Market ss re Red Storm d $6,000 d A X 5X $5,000 Departmental (7.4%)
Cray X1 $4,000 Divisional (5.3%)
$3,000 Enterprise (8.2%) $2,000 Capability (2.4%)
$1,000 ` (CAGR)
$0 2002 2003 2004 2005 2006 2007 Source: IDC 2003 September 2004 Cray Inc. Slide 8 SystemSystem BalanceBalance
Interconnect Balance Ratio Cray X1 2.00
Cray RedCray Storm XT3 1.60
ASCI Red 1.20
Cray T3E/1200 1.00
Cray XD1 1.00
IBM Blue Gene/L 0.38
HP Alpha/Quadrics 0.18
IBM POWER3 0.08
Intel Xeon/Myrinet 0.05
IBM POWER4 0.01
0.00 0.50 1.00 1.50 2.00 Co mmunicatio n/Co mputatio n Balance (B/F)
CrayCray offersoffers purposepurpose-built,-built, balancedbalanced HPCHPC solutionssolutions
September 2004 Cray Inc. Slide 9 Cray’sCray’s ComputingComputing VisionVision
Scalable High-Bandwidth Computing
20102010 ‘Cascade’‘Cascade’
SustainedSustained PetaflopsPetaflops 20062006
Cray X1E 20062006 ‘Rainier’‘Rainier’ 20042004 HeterogeneousHeterogeneous Cray X1 ComputingComputing 20062006 Red Storm
2004 20042004 20052005 20062006
Red Storm 20052005 20042004 Cray XD1
September 2004 Cray Inc. Slide 10 DARPADARPA –– CascadeCascade ProjectProject
Advanced Research Program Goal of a “trans-petaflops system” Robust, easier to program, more broadly applicable Phase I "The"The cyclecycle timetime fromfrom whenwhen Started in June 2002 for one year engineersengineers havehave anan ideaidea toto whenwhen Five total vendors theythey havehave aa programprogram readyready toto University partners runrun isis oneone ofof thethe bottlenecksbottlenecks inin high-endhigh-end computers,computers, andand itit willwill Phase II onlyonly becomebecome worseworse asas wewe Recent award of $49.9M to Cray developdevelop biggerbigger andand biggerbigger Two other vendors machines,“machines,“ -- Robert Robert Graybill,Graybill, Three-year contracts HPCSHPCS ProgramProgram Phase III planned in 2006
September 2004 Cray Inc. Slide 11 CrayCray SupercomputerSupercomputer LeadershipLeadership
Cray is the only company dedicated to HPC Deep experience base Uniquely responsive to our customers’ needs The Cray approach: Purpose-built machines for HPC Better system balance (flops, memory, network) Designed for efficient and reliable scalability
Today’s solutions: X1 ←→ Red Storm ←→ XD1 Sustained innovation: Rainier: Heterogeneous computing capability in 2006 Cascade: Aggressive research program for 2010
September 2004 Cray Inc. Slide 12 END • FIN • FINALE • FINE
Cray Inc.