MIRA INFORM REPORT

Report Date :

14.04.2012

IDENTIFICATION DETAILS

Name :	CRAY INC.
Registered Office :	411 First Avenue South Suite 1000, 901 Fifth Avenue Seattle, WA 98164
Country :	United States
Financials (as on) :	31.12.2011
Date of Incorporation :	December 1987
Legal Form :	Public Parent
Line of Business :	Manufacture of computers and other information processing equipment
No. of Employees :	860

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
United States	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name and address

Top of Form

Bottom of Form

Cray Inc.

411 First Avenue South
Suite 1000, 901 Fifth Avenue
Seattle, WA 98164
United States
Tel:	206-701-2000
Fax:	206-701-2500
www.cray.com

Employees:

860

Company Type:

Public Parent

Corporate Family:

8 Companies

Traded:

NASDAQ:

CRAY

Incorporation Date:

Dec-1987

Auditor:

Peterson Sullivan LLP

Financials in:	USD (mill)
Fiscal Year End:	31-Dec-2011
Reporting Currency:	US Dollar
Annual Sales:	236.0 ^1
Net Income:	14.3
Total Assets:	283.1 ^2
Market Value:	272.9
	(23-Mar-2012)

Business Description

Cray Inc. designs, develops, manufactures, markets and services high-performance computing (HPC) systems, known as supercomputers and provides engineering services related to HPC systems and solutions. The Company sells its HPC systems and services primarily, through a direct sales force that operates throughout the United States and in Canada, Europe, Japan and Asia-Pacific. The Company’s flagship supercomputers, the Cray XE syatems enable users to address scientific and engineering computing problems. The Company’s products include Cray XE6 System, Cray XE6m System, Cray XMT System, and Cray CX1 and Cray CX1000 Systems. The Company introduced Cray XE6 System in June 2010. In February 2012, the Company created a division, YarcData. In February 2012, the Company formed a wholly owned subsidiary in China, Cray Computing Equipment (Beijing) Co. Ltd. For the fiscal year ended 31 December 2010, Cray Inc.'s revenues increased 12% to $319.4M. Net income totaled $15.1M, vs. a loss of $604K. Revenues reflect an increase in income from product sales of United states segment. Net income reflects increased gross profit, decreased research & development net, increased interest income due to higher short term interest rates and decreased interest expenses due to repurchase of the notes.

Industry

Industry	Computer Hardware
ANZSIC 2006:	2421 - Computer and Electronic Office Equipment Manufacturing
NACE 2002:	3002 - Manufacture of computers and other information processing equipment
NAICS 2002:	334111 - Electronic Computer Manufacturing
UK SIC 2003:	3002 - Manufacture of computers and other information processing equipment
US SIC 1987:	3571 - Electronic Computers

Key Executives   (Emails Available)

Name	Title
Peter J. Ungaro	President, Chief Executive Officer, Director
Charles Fairchild	Vice President, Chief Accounting Officer, Controller
Barry C. Bolding	Vice President - Products Division and Corporate Marketing
Michael Piraino	Vice President, General Counsel, Corporate Secretary
Wayne J. Kugel	Senior Vice President - Customer Service

Significant Developments

Topic	#*	Most Recent Headline	Date
Divestitures / Spin-offs	1	GE's GE Global Research Acquires Cray Inc.'s Supercomputer	21-Jun-2011
Negative Earnings Pre-Announcement	2	Cray Inc. Lowers FY 2011 Revenue Guidance	1-Nov-2011
New Business / Unit / Subsidiary	2	Cray Inc. Forms New Subsidiary In China	23-Feb-2012
Business Deals	3	Cray Inc. Lands $97 Million Contract To Upgrade Supercomputer At Oak Ridge National Laboratory	11-Oct-2011
Other Earnings Pre-Announcement	2	Cray Inc. Reaffirms FY 2012 Revenue Guidance; Issues Q1 2012 Revenue Guidance In Line With Analysts' Estimates; Comments On Q4 2012 Revenue Guidance; Comments On FY 2012 Profit Guidance	27-Feb-2012

* number of significant developments within the last 12 months

News

Title	Date
DAD DELIVERS HIS BABY SON Nottingham Evening Post (UK) (561 Words)	9-Apr-2012
MINOR RESULTS: EUROPE Observer (UK) (222 Words)	8-Apr-2012
Reality-show quest leads to swamp romp Columbus Dispatch (OH) (453 Words)	4-Apr-2012
Cray Valley HSC Introduces New Trade Name for Metallic Monomers PR Web (202 Words)	4-Apr-2012
SmartCluster Partners with Bright Computing to Serve Russian HPC and Cloud Computing Market PR Web (261 Words)	30-Mar-2012

Financial Summary

As of 31-Dec-2011

Key Ratios	Company	Industry
Current Ratio (MRQ)	2.38	1.66
Quick Ratio (MRQ)	1.40	1.35
Debt to Equity (MRQ)	0.0000	0.18
Sales 5 Year Growth	1.32	27.16
Net Profit Margin (TTM) %	6.07	16.98
Return on Assets (TTM) %	5.27	19.26
Return on Equity (TTM) %	9.17	33.14

Stock Snapshot

Traded: NASDAQ: CRAY

As of 23-Mar-2012

   Financials in: USD

Recent Price	7.42	EPS	0.43
52 Week High	8.39	Price/Sales	1.16
52 Week Low	4.96	Price/Earnings	16.08
Avg. Volume (mil)	0.20	Price/Book	1.64
Market Value (mil)	272.90	Beta	1.53

	Price % Change	Rel S&P 500%
4 Week	-5.24%	-7.37%
13 Week	13.98%	3.23%
52 Week	18.53%	11.11%
Year to Date	14.68%	3.23%

1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1
2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1

Corporate Overview

Location
411 First Avenue South
Suite 1000, 901 Fifth Avenue
Seattle, WA, 98164
King County
United States

Tel:	206-701-2000
Fax:	206-701-2500

www.cray.com

Quote Symbol - Exchange
CRAY - NASDAQ
Sales USD(mil):	236.0
Assets USD(mil):	283.1
Employees:	860
Fiscal Year End:	31-Dec-2011

Industry:	Computer Hardware

Incorporation Date:	Dec-1987
Company Type:	Public Parent
Quoted Status:	Quoted

President, Chief Executive Officer, Director:	Peter J. Ungaro

Company Web Links

Company Contact/E-mail

Corporate History/Profile

Employment Opportunities

Executives

Financial Information

Home Page

Investor Relations

News Releases

Products/Services

Contents Industry Codes Business Description Product Codes Brand/Trade Names

Financial Data Market Data Key Corporate Relationships Additional Information

Industry Codes

ANZSIC 2006 Codes:
2421	-	Computer and Electronic Office Equipment Manufacturing

NACE 2002 Codes:
3002	-	Manufacture of computers and other information processing equipment

NAICS 2002 Codes:
334111	-	Electronic Computer Manufacturing

US SIC 1987:
3571	-	Electronic Computers

UK SIC 2003:
3002	-	Manufacture of computers and other information processing equipment

Business Description

Cray Inc., incorporated in December 1987, designs, develops, manufactures, markets and services high-performance computing (HPC) systems, known as supercomputers and provides engineering services related to HPC systems and solutions. The Company sells its HPC systems and services primarily, through a direct sales force that operates throughout the United States and in Canada, Europe, Japan and Asia-Pacific. The Company’s flagship supercomputers, the Cray XE syatems enable users to address scientific and engineering computing problems. The Company’s products include Cray XE6 System, Cray XE6m System, Cray XMT System, and Cray CX1 and Cray CX1000 Systems. The Company introduced Cray XE6 System in June 2010. In February 2012, the Company formed a wholly owned subsidiary in China, Cray Computing Equipment (Beijing) Co. Ltd. In February 2012, the Company created a division, YarcData.

Cray XE6 System

The Cray XE6 system is the Company’s principal massively parallel processing (MPP) system. Cray XE6 system is the successor to the Cray XT6, Cray XT5, Cray XT4 and Cray XT3 systems. The system has a compute density and memory bandwidth (four-channel DDR3), supporting high density processor configurations of 192 (eight- or twelve-core) AMD Opteron processor sockets or up to 2,304 processor cores and delivering more than 20 trillion floating point operations per second (teraflops) of computational capacity per cabinet. Customers can upgrade to the Cray XE6 system from the Cray XT5 system by upgrading the network, processors, memory and a new main board or they can just upgrade the network to create a Cray XE5 system. The Cray XE6 system can be liquid cooled through use of Cray ECOphlex technology or air cooled.

Cray XE6m System

The Cray XE6m supercomputer is designed to make its HPC technology available to more users. Offered with up to six cabinets, the Cray XE6m series features many-core (currently eight- or twelve-core) AMD Opteron processors and can be liquid cooled through use of Cray ECOphlex technology or air cooled. The Cray Linux Environment enables the use of a range of open source tools as well as streamlined porting of a broad set of applications from independent software vendors.

Cray XMT System

The Company’s Cray XMT supercomputer is a multithreaded platform with shared memory architecture for tasks, such as pattern matching, scenario development, behavioral prediction, anomaly identification and graph analysis. The system is built for parallel applications that are changing, require random access to shared memory and do not run well on conventional systems. A single Cray Threadstorm processor can sustain 128 simultaneous threads and is connected with up to eight gigabytes of memory that is globally accessible by any other Cray Threadstorm processor in the system. Each Cray Threadstorm processor is directly connected to a dedicated Cray SeaStar2 interconnect chip.

Cray CX1 and Cray CX1000 Systems

The Cray CX1 and CX1000 systems are purpose-built for laboratories and university departments requiring workgroup, or departmental level HPC resources. The Cray CX1 system offers both pedestal and rack-mount configurations and incorporates up to eight dual socket nodes per chassis. Each node is populated with two Intel Xeon 5600 series processors (either quad or hexa core) offering a maximum system configuration of 96 processor cores, with up to 96 gigabytes of memory per node, and up to 32 terabytes of internal storage within a single chassis. The Cray CX1000 system incorporates up to 18 dual socket compute nodes in a 7U form factor, allowing for extremely dense configurations, saving precious real estate in the datacenter. The Cray CX product line offers a mix of compute, storage, GPU, and visualization capabilities. The Cray CX1 system, which uses standard office power, is validated for use with either Windows HPC Server 2008 R2 or Red Hat Enterprise Linux featuring Cray Cluster Manager powered by Platform Computing.

The Company competes with IBM, Hewlett-Packard, Dell, NEC, Hitachi, Fujitsu, Silicon Graphics International, Intel, AMD, Teradata, Netezza, Oracle (Sun Microsystems), Lexis-Nexis and Bull S.A

More Business Descriptions

Cray Inc. designs, develops, manufactures, markets and services high-performance computing (HPC) systems, known as supercomputers and provides engineering services related to HPC systems and solutions. The Company sells its HPC systems and services primarily, through a direct sales force that operates throughout the United States and in Canada, Europe, Japan and Asia-Pacific. The Company’s flagship supercomputers, the Cray XE syatems enable users to address scientific and engineering computing problems. The Company’s products include Cray XE6 System, Cray XE6m System, Cray XMT System, and Cray CX1 and Cray CX1000 Systems. The Company introduced Cray XE6 System in June 2010. In February 2012, the Company created a division, YarcData. In February 2012, the Company formed a wholly owned subsidiary in China, Cray Computing Equipment (Beijing) Co. Ltd. For the fiscal year ended 31 December 2010, Cray Inc.'s revenues increased 12% to $319.4M. Net income totaled $15.1M, vs. a loss of $604K. Revenues reflect an increase in income from product sales of United states segment. Net income reflects increased gross profit, decreased research & development net, increased interest income due to higher short term interest rates and decreased interest expenses due to repurchase of the notes.

Establishments primarily engaged in providing computer programming services on a contract or fee basis. Establishments of this industry perform a variety of additional services, such as computer software design and analysis; modifications of custom software; and training in the use of custom software.

As one of the world's leaders in supercomputer industry, Cray provides computing platforms that enable scientists and engineers in academia, government and industry to meet both existing and future computational challenges. Building on years of experience in designing and manufacturing advanced computers, the company delivers a portfolio of supercomputers that combine fast processors with high-bandwidth, low-latency interconnect technologies. This combination creates a balanced system that delivers sustained performance on a wide range of applications. Cray supercomputers provide performance on critical applications and scalability to handle larger problems. Headquartered in Seattle, Cray employs more than 900 people throughout the world.

Manufacturer and developer of supercomputers. Products are sold to multiple industries.

Product Codes

Product Code	Product Description
COM-MS	Supercomputers

Brand/Trade Names
Craysoft - Computer software Gigaring - Computer hardware Mpp Apprentice - Computer storage devices	Supercluster - Computer software Gigaring - Computers

Financial Data

Financials in:	USD(mil)
Revenue:	236.0
Net Income:	14.3
Assets:	283.1
Long Term Debt:	0.0
Total Liabilities:	116.3
Working Capital:	0.0
Date of Financial Data:	31-Dec-2011

1 Year Growth

-26.1%

-4.9%

8.6%

Market Data

Quote Symbol:	CRAY
Exchange:	NASDAQ
Currency:	USD
Stock Price:	7.4
Stock Price Date:	03-23-2012
52 Week Price Change %:	18.5
Market Value (mil):	272,899.4
SEDOL:	B16NWY7
ISIN:	US2252233042
Equity and Dept Distribution:
Common Stock $.01 Par, 07/11, 75M auth., 36,277,028 issd. Insiders own approx. 3.08%. IPO: 9/95,1.7M shares @ $12 byH.J. Meyers & Co., Inc. Private Placement 2/2/00, 5.2M shares @ $5. 06/06, 1-for-4 reverse stock split. PO: 7.5M shs. @ $10 per share by Thomas Weisel Partners LLC.

Key Corporate Relationships

Auditor:	Peterson Sullivan LLP
Auditor:	Peterson Sullivan LLP

Additional information
ABI Number:	503507618

Location
901 5th Ave Ste: 1000 Seattle, WA 98164-2058 United States
County:	King
MSA:	Seattle, WA
Phone:	206-701-2000
Fax:	206-701-2500
ABI^©:	503507618
Annual Sales:	$319,388,000 (USD)
Employees:	885
Facility Size(ft^2):	40,000+
Facility Own/Lease:	Lease
Business Type:	Public
Location Type:	Headquarter
Ticker:	CRAY
Exchange:	NASDAQ

Primary Line of Business:
SIC:	7371-03
NAICS:	541511 - Custom Computer Programming Svcs
Secondary Lines of Business:
NAICS:	334111 - Electronic Computer Mfg
SICs:	3571-01 -
	8742-13 -
	9999-66 -
	541613 - Marketing Consulting Svcs

Corporate Structure News

Cray Inc.
Total Corporate Family Members: 8
Excluded Small Branches and/or Trading Addresses: 4 (Available via export)

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Cray Inc.	Parent	Seattle, WA	United States	Computer Hardware	236.0	860
Cray Inc	Branch	Chippewa Falls, WI	United States	Software and Programming	44.0	280
Cray Inc	Branch	Austin, TX	United States	Engineering Consultants	5.0	24
Cray U.K. Ltd.	Subsidiary	Reading	United Kingdom	Computer Services	27.3	22

Competitors Report

CompanyName	Location	Employees	Ownership
Bull SA	Les Clayes-Sous-Bois, France	8,778	Public
Dell Inc.	Round Rock, Texas, United States	106,700	Public
FUJITSU LIMITED	Tokyo, Japan	172,336	Public
General Dynamics Corporation	Falls Church, Virginia, United States	95,100	Public
Hewlett-Packard Company	Palo Alto, California, United States	349,600	Public
Hitachi, Ltd.	Tokyo, Japan	372,360	Public
Intel Corporation	Santa Clara, California, United States	100,100	Public
International Business Machines Corp.	Armonk, New York, United States	433,362	Public
Lockheed Martin Corporation	Bethesda, Maryland, United States	123,000	Public
NEC Corporation	Tokyo, Japan	115,840	Public
Northrop Grumman Corporation	Falls Church , Virginia, United States	72,500	Public
Oracle Corporation	Redwood Shores, California, United States	113,644	Public
Silicon Graphics International Corp	California, California, United States	1,563	Public
Teradata Corporation	Dayton, Ohio, United States	8,600	Public

Executives Report

Board of Directors

Name	Title	Function
Stephen C. Kiely	Non-Executive Independent Chairman of the Board	Chairman
Mr. Stephen C. Kiely serves as Independent Director of Cray Inc since 1999. He was appointed Lead Director in January 2005 and Chairman of the Board in August 2005. From 1999 to July 2008, he was Chairman of Stratus Technologies, Inc., a provider of fault tolerant computer servers, technologies and services. Mr. Kiely served as Chief Executive Officer of Stratus Technologies from 1999 through June 2003. He joined Stratus Technologies in 1994 and held various executive positions with Stratus Technologies, becoming President of the Stratus Enterprise Computer division in 1998. Prior to joining Stratus, Mr. Kiely held a number of executive positions with several information technology companies, including EON Corporation, Bull Information Systems, Prisma, Inc., Prime Computer and IBM. Mr. Kiely is a member of the board of directors of Stratus Technologies. Mr. Kiely received a B.A. from Fairfield University and an M.S. in Management from the Stanford University Graduate School of Business. Education MS Management, University of Venice BA Mathematics, Fairfield University
William C. Blake	Independent Director	Director/Board Member
Mr. William C. Blake has served as Independent Director of Cray Inc since June 2006. Mr. Blake has been involved in the high-performance computing industry for nearly three decades. He currently serves as General Manager, Parallel Computing Platform group at Microsoft Corporation after the acquisition in September 2009 of Interactive Supercomputing, Inc. (“ISC�) where he served as the President and Chief Executive Officer. ISC developed and sold an interactive parallel computing platform that extends existing desktop simulation tools for parallel computing on a spectrum of computing architectures. Before assuming this position in January 2007, he served as the Senior Vice President, Product Development of Netezza Corporation, which develops, markets and sells data warehouse appliances. Prior to joining Netezza in 2002, he was with Compaq Computer Corporation for nine years, managing both Compaq’s worldwide high-performance technical computing business and its software development group from 1996 to 2002, which included responsibility for compiler development for the Alpha processor; from 1993 to 1996 he was Compaq’s director of software products development and long-range operating system strategy. Mr. Blake previously held various key engineering management positions with Digital Equipment Corporation from 1981 to 1993. Mr. Blake is a member of the board of directors of TotalView Technologies, Inc., a provider of debugging and analysis solutions for complex computer codes, and Terascala Inc., a provider of high-performance storage appliances, and he is a member of the Institute of Electrical and Electronics Engineers and the Association for Computing Machinery. He received a B.S. from Lowell Technological Institute. Education BS Electrical Engineering, University of Massachusetts
John B. Jones	Independent Director	Director/Board Member
Mr. John B. Jones, Jr. serves as Independent Director of Cray Inc since December 2004. He was a high-technology equity research analyst for nearly 20 years. Until his retirement in 2004, Mr. Jones was a Senior Managing Director at Schwab SoundView Capital Markets. He joined SoundView in 2002 as a Senior Equity Research Analyst. From 1992 to 2002, Mr. Jones was a Managing Director and Senior Analyst at Salomon Brothers, Salomon Smith Barney and Citibank, where he covered the Server and Enterprise Hardware, Printer and Test & Measurement industries. From 1985 to 1992, he was a partner and senior analyst at Montgomery Securities. Prior to his career as an equity research analyst, Mr. Jones held various positions in the computer industry at Stratus Computer, Wang Laboratories and IBM. From 2004 to 2008, Mr. Jones served on the board of directors of Stratus Technologies, Inc., a provider of fault tolerant computer services, technologies and services. He received a B.S. from the University of Oregon. Education BS , University of Oregon
Frank L. Lederman	Independent Director	Director/Board Member
Dr. Frank L. Lederman serves as Independent Director of Cray Inc. He served as Vice President and Chief Technical Officer of Alcoa Inc., a world leader in the production and management of primary aluminum, fabricated aluminum, and alumina combined, from 1995 until his retirement in 2002, where he had overall responsibility for global research, development, and engineering, including the 950-member Alcoa Technical Center. He was also a member of Alcoa’s Corporate Executive Council, which acted as an internal board for conducting quarterly reviews of the results and plans of each business unit. From 1988 to 1995, Dr. Lederman was with Toronto-based Noranda Inc., which was a diversified natural resources conglomerate where he served as Senior Vice President — Technology, and, among other responsibilities, directed the Noranda Technology Center in Montreal. Before joining Noranda, he was with General Electric Company from 1976 to 1988, serving as a physicist and in a number of management positions, including manager of electronics research programs and resources at the Corporate R&D Center in Schenectady, N.Y. Dr. Lederman received a B.S. in Mathematics and an M.S. in Physics from Carnegie-Mellon University, and he received an M.S. and Ph.D. in Physics from the University of Illinois. During the past 20 years he has served on numerous advisory boards and panels at universities and government laboratories. On Company's Board of Directors, Dr. Lederman represents the interests of customers and end users. Education) PHD Physics, University of Illinois MS Physics, University of Illinois MS Physics, Carnegie Mellon University
Sally G. Narodick	Independent Director	Director/Board Member
Ms. Sally G. Narodick serves as Independent Director of Cray Inc since October 2004. She is a retired educational technology and e-learning consultant. From 2000 to 2004, Ms. Narodick was President of Narodick Consulting, an e-learning consulting firm. From 1998 to 2000, she served as Chief Executive Officer of Apex Online Learning, an Internet educational software company. Previously, Ms. Narodick served as an education technology consultant, both independently and for the Consumer Division of IBM from 1996 to 1998. From 1989 to 1996, Ms. Narodick served as Chairman and Chief Executive Officer of Edmark Corporation, an educational software company sold to IBM in 1996. From 1973 to 1987, she served in a variety of financial management capacities at Seafirst Corporation and Seafirst Bank, and was a securities analyst at Paine Webber from 1970 to 1973. Since 1993, Ms. Narodick has served as a member of the board of directors of Penford Corporation and previously served as a member on the boards of SumTotal Systems from 1999 to 2009, Puget Energy, Inc. from 1989 to 2009 and Solutia Inc. from 2000 to 2008. A graduate of Boston University, Ms. Narodick received an M.A. in Teaching from Teachers College, Columbia University, and an M.B.A. from New York University. Education MBA , New York University MA Teaching, Columbia University , Boston University
Daniel C. Regis	Independent Director	Director/Board Member
Mr. Daniel C. Regis serves as Independent Director of Cray Inc since 2003. He is currently the General Partner of Regis Investments, LP and has served in this role since 1998. He has been the Chairman of the advisory board for Fluke Venture Partners II, LP, a Northwest venture capital partnership, since 2004. From 2000 to 2009, he was the Managing Director of Digital Partners, a venture capital fund specializing in Northwest emerging technology companies. From 1996 to 1999, he was President of Kirlan Venture Capital, Inc., where he managed similarly focused technology funds. During that time, he was also a director or chairman of several pre-public companies. Prior to 1996, Mr. Regis spent over 30 years with Price Waterhouse LLP, including serving as managing partner of the Seattle office and previously of the Northwest and Portland, Oregon offices. Since 2003, Mr. Regis has served as a member of the board of directors of Columbia Banking System, Inc., and in 2004, joined the board of Art Technology Group, Inc. and became the Chairman of the board of directors in 2005. He is also a member of the audit committee of Columbia Banking Systems, Inc. and chairs its risk management committee, and is a member of the audit committee of Art Technology Group, Inc. From 2003 to 2004, Mr. Regis was also a member of the board of directors of Primus Knowledge Solutions, Inc. until its merger with and into Art Technology Group, Inc. in 2004 and chaired its audit committee. He received a B.S. from Seattle University. Education BS , Seattle University
Stephen C. Richards	Independent Director	Director/Board Member
Mr. Stephen C. Richards serves as Independent Director of Cray Inc 2004. He is currently a private investor. From 2000 to 2004, when he retired, he served as Chief Operating Officer and Chief Financial Officer of McAfee, Inc., the provider of intrusion prevention and risk management solutions. From 1999 to 2000, he served as Chief Online Trading Officer of E*TRADE Group, Inc. From 1998 to 1999, he served as Senior Vice President, Corporate Development and New Ventures at E*TRADE, following two years as E*TRADE’s Senior Vice President of Finance, Chief Financial Officer and Treasurer. Prior to joining E*TRADE in 1996, he was Managing Director and Chief Financial Officer of Correspondent Clearing at Bear Stearns & Companies, Inc., Vice President/Deputy Controller of Becker Paribas and First Vice President/Controller of Jefferies and Company, Inc. Mr. Richards is a member of the board of directors of BigFix, Inc. and Guidance Software, Inc., and is a trustee for the UC Davis Foundation. From 1999 to 2009, he served as a member of the board of directors of Trade Station Group. Mr. Richards is a Certified Public Accountant. He received a B.A. from the University of California at Davis and an M.B.A. in Finance from the University of California at Los Angeles. Education MBA Finance, University of California, Los Angeles BA Economics, University of California, Davis
Peter J. Ungaro	President, Chief Executive Officer, Director	Director/Board Member
Mr. Peter J. Ungaro is the President, Chief Executive Officer, Director of Cray Inc. He has served as Chief Executive Officer and as a member of Company's Board since August 2005 and as President since March 2005. From May 2004 until August 2005, Mr. Ungaro served as Company's Senior Vice President responsible for sales, marketing and services and from August 2003 until September 2004, he served as Vice President responsible for sales and marketing. Prior to joining the Company, he served as Vice President, Worldwide Deep Computing Sales for IBM beginning in April 2003 and as IBM’s Vice President, Worldwide HPC Sales beginning in February 1999. He also held a variety of other sales leadership positions at IBM beginning in 1991. Mr. Ungaro received a B.A. from Washington State University. Education BA , Washington State University Compensation/Salary: 450,000

Executives

Name	Title	Function
Peter J. Ungaro	President, Chief Executive Officer, Director	Chief Executive Officer
Mr. Peter J. Ungaro is the President, Chief Executive Officer, Director of Cray Inc. He has served as Chief Executive Officer and as a member of Company's Board since August 2005 and as President since March 2005. From May 2004 until August 2005, Mr. Ungaro served as Company's Senior Vice President responsible for sales, marketing and services and from August 2003 until September 2004, he served as Vice President responsible for sales and marketing. Prior to joining the Company, he served as Vice President, Worldwide Deep Computing Sales for IBM beginning in April 2003 and as IBM’s Vice President, Worldwide HPC Sales beginning in February 1999. He also held a variety of other sales leadership positions at IBM beginning in 1991. Mr. Ungaro received a B.A. from Washington State University. Education BA , Washington State University Compensation/Salary: 450,000
Duncan Roweth View Email	Principal Engineer	President
Barry C. Bolding	Vice President - Products Division and Corporate Marketing	Division Head Executive
Barry C. Bolding serves as Vice President, Products Division and Corporate Marketing, overseeing product management, applications, benchmarking and corporate and product marketing for Cray’s entire range of high performance computing solutions. Prior to his appointment as Vice President in January 2009, Dr. Bolding was Cray’s Director of Product Marketing where he analyzed future products and developed long-term strategies. Over the course of his career, Dr. Bolding has worked with key customers in government, academia and commercial markets and held positions as a scientist, applications specialist, systems architect and presales product and marketing manager. He first joined Cray Research, Inc. in 1992 and has held subsequent positions with Network Computing Services and IBM. Dr. Bolding holds a B.S. in chemistry from the University of California at Davis and a Ph.D. in chemical physics from Stanford University. Education BS Chemistry, University of California , Stanford University
Ian W. Miller View Email	Senior VP-Productivity Solutions Group Sales & Marketing	Division Head Executive
Arvind Parthasarathi	Sr VP & Gen Mgr-YarcData	Division Head Executive
Arvind Parthasarathi	Senior Vice President, General Manager - YarcData	Division Head Executive
Mr. Arvind Parthasarathi has been appointed as the Senior Vice President, General Manager - YarcData, a new division of Cray Inc. Prior to joining Cray, Parthasarathi was with Informatica Corporation, where he served as senior vice president and general manager of the company's fast growing Master Data Management business unit. In this role, he led a global team delivering business-focused data management solutions for life sciences, financial services, retail, manufacturing, healthcare and government. Previously, Parthasarathi served as vice president of product management for Informatica's Data Quality products and before that he was a senior director responsible for data migration and data integration solutions. Prior to Informatica Corporation, Parthasarathi held various positions at i2 Technologies and Oracle Corporation.
Paul C. Ciernia	Vice President-Sales Operations	Operations Executive
Bonnie Collett	Office Manager	Administration Executive
Michael Piraino	Vice President, General Counsel, Corporate Secretary	Company Secretary
Mr. Michael Piraino is Vice President, General Counsel, Corporate Secretary of Cray Inc since October 2009. Prior to joining Cray, from October 2007 to September 2009, he served with the Seattle office of the law firm Fenwick & West LLP (and a predecessor firm), where his practice focused on corporate finance and securities. From October 2006 to June 2007, Mr. Piraino served with the Exbiblio family of companies in various positions, including Chief Executive Officer. From May 1999 to October 2006, he served with WatchGuard Technologies, Inc. in various roles, including Vice President, General Counsel and Secretary, and from October 1995 to May 1999 he served with the law firm Perkins Coie LLP. Mr. Piraino began his career as a propulsion engineer at The Boeing Company. He holds a B.S. in aeronautical and astronautical engineering from Purdue University and a J.D., magna cum laude, from the Seattle University School of Law. Education JD , Seattle University BS Aeronautical Engineering, Purdue University
Brian C. Henry View Email	Chief Financial Officer, Executive Vice President	Finance Executive
Mr. Brian C. Henry has served as Executive Vice President and Chief Financial Officer of Cray Inc since May 2005. Mr. Henry previously served as Executive Vice President and Chief Financial Officer of Onyx Software Corporation, a full suite customer relationship management company, which he joined in 2001. He previously served from 1999 to 2001 as Executive Vice President and Chief Financial Officer of Lante Corporation, a public internet consulting company focused on e-markets and collaborative business models. From 1998 to 1999 he was Chief Operating Officer, Information Management Group, of Convergys Corporation, which he helped spin-off from Cincinnati Bell Inc., a diversified service company where he served as Executive Vice President and Chief Financial Officer from 1993 to 1998. From 1983 to 1993 he was with Mentor Graphics Corporation in key financial management roles, serving as Chief Financial Officer from 1986 to 1993. Mr. Henry received a B.S. from Portland State University and an M.B.A. from Harvard University where he was a Baker Scholar. Education MBA , Harvard University BS , Portland State University Compensation/Salary: 340,000
Charles Fairchild	Vice President, Chief Accounting Officer, Controller	Accounting Executive
Mr. Charles Fairchild serves as Vice President, Chief Accounting Officer, Controller of Cray Inc. Prior to joining Cray Inc on May 17, 2010, from January 2008 until July 2009, Mr. Fairchild served as Vice President and Chief Financial Officer of Radiant Research, Inc., a comprehensive clinical research and development company serving the biopharmaceutical and medical device industry. From September 1993 until December 2007, Mr. Fairchild served with the accounting firm Deloitte & Touche LLP, most recently as a Senior Manager. Mr. Fairchild received a B.A. in Business Administration with a concentration in Accounting and is nearing completion of an M.B.A. from the University of Washington and is a Certified Public Accountant. Education BA Business Administration, University of Washington
Paul Hiemstra	Director-Investor Relations	Investment Executive
Linda J. Howitson View Email	Vice President-Human Resources	Human Resources Executive
John Neale View Email	Vice President Human Resource	Human Resources Executive
Wayne J. Kugel View Email	Senior Vice President - Customer Service	Customer Service Executive
Mr. Wayne J. Kugel has been appointed as Senior Vice President - Customer Service of Cray Inc., effective September 27, 2011. He serves as Senior Vice President Operations and Customer Support responsible for operations, customer service, enterprise risk management and product life cycle management. He joined the Company in 2001, and through 2005 he served as program director for the Red Storm supercomputer program and its commercial successor, the Cray XT3 system. He was named as Vice President responsible for operations in 2005 and promoted to Senior Vice President in early 2009. From 1995 through 2001, Mr. Kugel held various positions for IBM Business Intelligence, including serving as the leader of the worldwide Enterprise Customer Analytics group. From 1991 through 1995, he held a variety of information technology development and leadership roles for Carlson Marketing Group. Mr. Kugel received a B.A. from the University of Wisconsin, Eau Claire. Education BA , University of Wisconsin, Eau Claire Compensation/Salary: 245,000
Larry W. Hoelzeman View Email	Vice President - Worldwide Sales	Sales Executive
Larry W. Hoelzeman has served as Vice President, Worldwide Sales since January 2011. Mr. Hoelzeman previously served as Vice President of Sales, North America since 2006. A 23-year veteran in the high computing industry, Mr. Hoelzeman has served in a variety of sales and presales roles at Cray Research, Inc., Silicon Graphics, Inc. and Cray. Mr. Hoelzeman received a B.S. in computer science from the University of Central Arkansas. Education BS Computer Science, University of Central Arkansas
Ulla Thiel	Vice President-Europe	International Executive
Christy Adkinson View Email	Director-Corporate Marketing	Marketing Executive
Philip Weber View Email	Marketing	Marketing Executive
Nick Davis	Media Contact	Public Relations Executive
Lisa Cynor-Codega View Email	Information Technology	Information Executive
Steven L. Scott View Email	Senior Vice President & Chief Technology Officer	Information Executive
Sybil Simpkins View Email	Information Technology	Information Executive
Davidâ  Mizellâ  View Email	Senior Technical Managerâ - It	Engineering/Technical Executive
Charles A. Morreale	Vice President - Custom Engineering	Engineering/Technical Executive
Mr. Charles A. Morreale has served as Vice President - Custom Engineering of Cray Inc. He most recently served as Company's Vice President responsible for Company's central and field service and benchmarking organizations from April 2005 through January 2009. From March 2004, when he first joined the Company, until April 2005, he served as Director of Worldwide Sales Support. From 2001 to 2004, he was with IBM as an HPC Sales Executive responsible for worldwide HPC sales activities in the Life Sciences segment. From 1984 to 2001, he held a variety of positions at Cray Research, Inc. and Silicon Graphics, Inc., starting as a programmer analyst and ending as the Northeast Territory Sales Account Manager. He received a B.S. from The College of New Jersey. Education BA , College of New Jersey
Margaret A. Williams	Senior Vice President of Research and Development	Research & Development Executive
Education PHD Applied Mathematics, Lehigh University MS Mathematics, Lehigh University BS Mathematics and Physics, Ursinus College Compensation/Salary: 315,000
Skip Richardson	Vice President-Business Development	Business Development Executive
John Richardson	Business Development, Vice President	Business Development Executive
David R. Kiefer	Vice President & Customer Development Executive	Other
Keita Teranishi View Email	Program Chair	Other

Significant Developments

Cray Inc. Reaffirms FY 2012 Revenue Guidance; Issues Q1 2012 Revenue Guidance In Line With Analysts' Estimates; Comments On Q4 2012 Revenue Guidance; Comments On FY 2012 Profit Guidance

Feb 27, 2012

Cray Inc. announced that for fiscal 2012, it expects revenue to be in the range of $400-$420 million. Revenue for the first quarter of 2012 is expected to be about $100 million with the balance of the revenue for the year heavily weighted to the fourth quarter of 2012. The Company expect to be solidly profitable for 2012. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $100 million for the first quarter of 2012 and revenue of $404 million for fiscal 2012.

Cray Inc. Forms New Subsidiary In China

Feb 23, 2012

Cray Inc. announced that it has formed a new wholly-owned subsidiary in China aimed at strengthening Cray's presence in China's growing High Performance Computing (HPC) marketplace. Located in Beijing's Haidian district, Cray Computing Equipment (Beijing) Co. Ltd. will focus on selling Cray supercomputing systems and storage, training end-users and administrators, and providing the, direct customer service for which Cray has become known. With plans to staff the subsidiary with new Cray employees that are skilled in HPC, the Company is making a long-term commitment towards building a base of Cray customers in China. Cray Computing Equipment (Beijing) Co. Ltd. is a wholly-owned subsidiary of Cray China Limited, a wholly-owned subsidiary of Cray registered in Hong Kong.

Cray Inc. Forms New Data Division

Feb 08, 2012

Cray Inc. announced that it has created a new division within the Company focused exclusively on delivering solutions for the rapidly-growing, multi-billion dollar "Big Data" market. This division, called YarcData, will be led by Arvind Parthasarathi, who has been appointed to the new position of senior vice president and general manager of YarcData. Broadly expanding the scope of what was previously Cray's Knowledge Management practice, YarcData will provide differentiated, business-focused and cost-effective Big Data solutions for enterprises worldwide. The new division will consist of Cray employees spanning several functions of the Company, including research and development, marketing, sales, services and support. By creating a division within the Company that is dedicated to the needs of enterprise customers, YarcData signifies Cray's commitment to serving the Big Data analytics market.

Cray Inc. Lowers FY 2011 Revenue Guidance; Raises FY 2012 Revenue Guidance

Jan 05, 2012

Cray Inc. announced that for fiscal 2011, it expects revenue to be in the range of $230-$240 million. For fiscal 2012, it expects revenue to be in the range of $400-$420 million. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $310 million for fiscal 2011 and revenue of $350 million for fiscal 2012.

Cray Inc. Reaffirms FY 2011 Revenue Guidance; Issues FY 2012 Guidance; Revenue Guidance Above Analysts' Estimates; Secures Contract From National Center For Supercomputing Applications

Nov 14, 2011

Cray Inc. announced that for fiscal 2011, the Company's outlook remains the same as stated on November 1, 2011, in the Company's earnings release reporting third quarter 2011 financial results. For fiscal 2012, it expects revenue to be in the range of $340-$360 million, which includes the Blue Waters system at NCSA that is expected to contribute roughly 40% of the annual revenue and revenue is expected to be heavily weighted to the fourth quarter. Based on this outlook, the Company expects to be profitable for fiscal 2012. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $310 million for fiscal 2011; report revenue of $320 million for fiscal 2012. The Company also announced that it has finalized a contract with the University of Illinois' National Center for Supercomputing Applications (NCSA) to provide the supercomputer for the National Science Foundation's Blue Waters project. Consisting of products and services, the multi-phase, multi-year contract is valued at $188 million. The Cray supercomputer will be installed in multiple phases over the first three quarters of 2012 at the University of Illinois' National Petascale Computing Facility. Acceptance of the complete system is anticipated to occur in the fourth quarter of 2012.

Cray Inc. Lowers FY 2011 Revenue Guidance

Nov 01, 2011

Cray Inc. announced that for fiscal 2011, it expects total revenue to be in the range of $290-$320 million. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $323 million for fiscal 2011.

Cray Inc. Lands $97 Million Contract To Upgrade Supercomputer At Oak Ridge National Laboratory

Oct 11, 2011

Cray Inc. announced the Company has signed a contract to upgrade the Cray XT5 supercomputer nicknamed "Jaguar" located at the Department of Energy's (DOE) Oak Ridge National Laboratory (ORNL) to a new Cray XK6 supercomputer, which will be nicknamed Titan. When completed, the Titan system will have a peak performance between 10 and 20 petaflops (quadrillion mathematical calculations per second) of high performance computing (HPC) power. Consisting of products and services, the multi-year, multi-phase contract is valued at more than $97 million. The first phase of the contract will include replacing the Cray XT5 compute blades with Cray XK6 compute blades, which will feature the upcoming AMD (NYSE: AMD) Opteron(TM) processors code-named Interlagos, Cray's Gemini interconnect, and a subset of Cray XK6 nodes equipped with NVIDIA Tesla 20-series GPUs. The first phase is expected to generate more than $60 million in product revenue and is targeted to be completed in 2011. The second phase of the contract -- equipping the system with NVIDIA Tesla GPUs based on the architecture code-named Kepler is expected to be completed in the second half of 2012. The contract includes additional upgrade options beyond these two phases that, if exercised, would increase the total value of the contract.

Mongolia's National Agency of Meteorology And Environmental Monitoring Orders Cray Inc.'s Cray XE6m Supercomputer

Sep 26, 2011

Cray Inc. announced that the National Agency of Meteorology and Environmental Monitoring (NAMEM) in Ulaanbaatar, Mongolia has ordered a Cray XE6m supercomputer. NAMEM specializes in weather forecasting and climate projection integration in Mongolia, and will use its Cray XE6m system to perform regional weather and climate models for operational and research purposes.

Cray Inc. Reaffirms FY 2011 Revenue Guidance; Issues Q3 2011 Revenue Guidance Below Analysts' Estimates; Comments On Q4 2011 Revenue Guidance

Jul 28, 2011

Cray Inc. announced that for fiscal 2011, it expects total revenue to be $300-$340 million. Quarterly revenue is expected to fluctuate for 2011 with third quarter revenue in the range of $35 million and fourth quarter revenue likely representing more than 50% of the annual total. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenues of $322 million for fiscal 2011; revenues of $48 million and revenues of $167 million for fourth quarter of 2011.

GE's GE Global Research Acquires Cray Inc.'s Supercomputer

Jun 21, 2011

Cray Inc. announced that the Company has sold a Cray XE6m supercomputer to GE Global Research, the technology development arm for the General Electric Company. The new Cray XE6m supercomputer will be used to support simulation-based engineering and science across the various disciplines at GE Global Research. The Cray system will give GE Global Research the ability to run more complex simulations in order to explore multi-physics challenges, gain higher fidelity insights and pursue areas of science and product development that could not be simulated using standard commodity clusters. The Cray XE6m system, the midrange version of the Cray XE6 supercomputer, is optimized to support scalable application workloads in a cost-effective system. With a flexible, scalable and performance-optimized Cray Linux Environment, Cray XE6m users can leverage an operating system that makes it easier for a wide variety of applications to benefit from superior scalability. With Cray's Cluster Compatibility Mode (CCM), Cray XE6m customers also benefit from the streamlined installation of a broad set of independent software vendor (ISV) applications.

Cray Inc. Signs Contract to Upgrade and Expand Cray XE6 Supercomputer at University of Edinburgh

May 09, 2011

Cray Inc. announced that it will upgrade and expand the Cray XE6 supercomputer located at the University of Edinburgh in Scotland. Cray has signed a contract with the University of Edinburgh HPCX Ltd. and the upgrade and expansion will provide high performance computing (HPC) services for users of the Engineering and Physical Sciences Research Council, which is the managing agent for the High-End Computing Terascale Resource (HECToR) project.

Cray Inc. Lowers FY 2011 Revenue Guidance; Issues Q2 2011 Revenue Guidance Above Analysts'' Estimates; Comments On Q4 2011 Revenue Guiance

May 09, 2011

Cray Inc. announced that for fiscal 2011, it expects revenue to be $300-$340 million. For the second quarter of 2011, it expects revenue to be in the range of $65-$70 and fourth quarter of fiscal 2011 revenue representing more than 50% of the annual total. According to Reuters Estimates, analysts are expecting the Company to report revenue of $332 million for fiscal 2011; revenue of $55 million for the second quarter of 2011 and revenues of $170 million for the fourth quarter of 2011.

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009	Restated Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson- Sullivan & Co.	Peterson- Sullivan & Co.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Net Sales	236.0	319.4	284.0	282.9	186.2
Revenue	236.0	319.4	284.0	282.9	186.2
Total Revenue	236.0	319.4	284.0	282.9	186.2
Cost of Revenue	141.7	209.4	178.2	171.8	120.7
Cost of Revenue, Total	141.7	209.4	178.2	171.8	120.7
Gross Profit	94.4	110.0	105.9	111.1	65.4
Selling/General/Administrative Expense	42.0	48.9	43.2	41.7	37.1
Total Selling/General/Administrative Expenses	42.0	48.9	43.2	41.7	37.1
Research & Development	49.5	43.6	62.9	51.8	37.9
Restructuring Charge	1.8	0.0	0.0	-	-
Impairment-Assets Held for Use	-	-	-	54.5	0.0
Unusual Expense (Income)	1.8	0.0	0.0	54.5	0.0
Total Operating Expense	234.9	301.9	284.3	319.7	195.7
Operating Income	1.2	17.5	-0.2	-36.9	-9.5
Interest Expense - Non-Operating	-0.3	-0.3	-1.3	-7.6	-8.1
Interest Expense, Net Non-Operating	-0.3	-0.3	-1.3	-7.6	-8.1
Interest Income - Non-Operating	0.2	0.5	0.5	3.6	7.0
Interest/Investment Income - Non-Operating	0.2	0.5	0.5	3.6	7.0
Interest Income (Expense) - Net Non-Operating Total	0.0	0.2	-0.8	-4.1	-1.1
Other Non-Operating Income (Expense)	-1.0	-0.8	-0.4	0.6	1.1
Other, Net	-1.0	-0.8	-0.4	0.6	1.1
Income Before Tax	0.1	16.9	-1.5	-40.4	-9.5
Total Income Tax	-14.2	1.9	-0.9	0.4	1.2
Income After Tax	14.3	15.1	-0.6	-40.7	-10.6
Net Income Before Extraord Items	14.3	15.1	-0.6	-40.7	-10.6
Net Income	14.3	15.1	-0.6	-40.7	-10.6
Income Available to Common Excl Extraord Items	14.3	15.1	-0.6	-40.7	-10.6
Income Available to Common Incl Extraord Items	14.3	15.1	-0.6	-40.7	-10.6
Basic/Primary Weighted Average Shares	35.1	34.3	33.6	32.6	31.9
Basic EPS Excl Extraord Items	0.41	0.44	-0.02	-1.25	-0.33
Basic/Primary EPS Incl Extraord Items	0.41	0.44	-0.02	-1.25	-0.33
Dilution Adjustment	-	-	0.0	0.0	0.0
Diluted Net Income	14.3	15.1	-0.6	-40.7	-10.6
Diluted Weighted Average Shares	36.1	35.3	33.6	32.6	31.9
Diluted EPS Excl Extraord Items	0.40	0.43	-0.02	-1.25	-0.33
Diluted EPS Incl Extraord Items	0.40	0.43	-0.02	-1.25	-0.33
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Interest Expense, Supplemental	0.3	0.3	1.3	7.6	8.1
Depreciation, Supplemental	7.6	8.1	7.1	8.6	11.2
Total Special Items	1.8	0.0	0.0	54.5	0.0
Normalized Income Before Tax	1.9	16.9	-1.5	14.1	-9.5
Effect of Special Items on Income Taxes	0.6	0.0	0.0	19.1	0.0
Inc Tax Ex Impact of Sp Items	-13.6	1.9	-0.9	19.4	1.2
Normalized Income After Tax	15.5	15.1	-0.6	-5.4	-10.7
Normalized Inc. Avail to Com.	15.5	15.1	-0.6	-5.4	-10.7
Basic Normalized EPS	0.44	0.44	-0.02	-0.16	-0.33
Diluted Normalized EPS	0.43	0.43	-0.02	-0.16	-0.33
Amort of Intangibles, Supplemental	-	0.2	0.2	0.2	0.2
Rental Expenses	4.9	4.7	4.4	3.6	3.5
Advertising Expense, Supplemental	0.6	0.8	0.9	1.0	0.6
Research & Development Exp, Supplemental	49.5	43.6	62.9	51.8	37.9
Reported Operating Profit	-	17.5	-0.2	-36.9	-9.5
Normalized EBIT	2.9	17.5	-0.2	17.6	-9.5
Normalized EBITDA	10.5	25.8	7.1	26.4	1.9
Current Tax - Domestic	-0.1	0.6	-0.8	-0.1	0.0
Current Tax - Foreign	0.3	1.2	1.3	1.1	0.9
Current Tax - Local	0.0	0.3	0.0	0.0	0.0
Current Tax - Total	0.2	2.1	0.5	1.1	1.0
Deferred Tax - Domestic	-12.9	0.0	0.0	0.0	0.0
Deferred Tax - Foreign	-0.5	-0.3	-1.4	-0.7	0.2
Deferred Tax - Local	-0.9	0.0	0.0	0.0	0.0
Deferred Tax - Total	-14.4	-0.3	-1.4	-0.7	0.2
Income Tax - Total	-14.2	1.9	-0.9	0.4	1.2
Defined Contribution Expense - Domestic	1.1	2.1	0.2	1.7	1.6
Total Pension Expense	1.1	2.1	0.2	1.7	1.6

Annual Balance Sheet

Financials in: USD (mil)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009	Updated Normal 31-Dec-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson- Sullivan & Co.	Peterson- Sullivan & Co.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Cash & Equivalents	50.4	57.4	105.0	72.4	120.5
Short Term Investments	-	0.0	3.0	5.4	48.6
Cash and Short Term Investments	50.4	57.4	108.0	77.7	169.1
Accounts Receivable - Trade, Gross	66.7	104.1	35.1	95.8	23.7
Provision for Doubtful Accounts	-0.1	-0.1	-0.2	-0.1	-0.1
Trade Accounts Receivable - Net	66.6	104.0	35.0	95.7	23.6
Other Receivables	5.8	2.3	3.2	-	-
Total Receivables, Net	72.4	106.3	38.2	95.7	23.6
Inventories - Finished Goods	48.5	32.1	3.9	57.3	19.0
Inventories - Work In Progress	20.0	5.7	14.4	6.3	15.8
Inventories - Raw Materials	29.4	11.5	10.7	16.8	20.8
Total Inventory	97.9	49.2	29.0	80.4	55.6
Prepaid Expenses	12.9	5.9	5.5	30.0	4.1
Restricted Cash - Current	3.8	3.9	5.2	2.7	10.0
Other Current Assets, Total	3.8	3.9	5.2	2.7	10.0
Total Current Assets	237.4	222.7	185.9	286.5	262.5
Buildings	11.9	11.4	11.2	14.0	13.0
Land/Improvements	0.1	0.1	0.1	0.1	0.1
Machinery/Equipment	82.1	79.2	105.5	97.5	88.9
Property/Plant/Equipment - Gross	94.1	90.8	116.8	111.6	102.0
Accumulated Depreciation	-77.6	-72.8	-97.0	-93.2	-84.9
Property/Plant/Equipment - Net	16.5	18.0	19.8	18.4	17.0
Goodwill, Net	-	-	-	-	65.4
Intangibles - Gross	14.7	27.7	29.8	-	-
Accumulated Intangible Amortization	-13.1	-25.8	-28.1	-	-
Intangibles, Net	1.6	1.9	1.7	1.9	4.2
Deferred Income Tax - Long Term Asset	13.4	3.1	2.7	1.2	0.5
Other Long Term Assets	14.3	15.0	13.6	5.8	6.3
Other Long Term Assets, Total	27.6	18.1	16.2	7.0	6.8
Total Assets	283.1	260.6	223.7	313.9	355.9
Accounts Payable	38.3	20.4	18.8	16.7	14.1
Accrued Expenses	16.7	27.0	26.0	48.3	19.5
Notes Payable/Short Term Debt	0.0	0.0	0.0	25.7	0.0
Customer Advances	44.6	49.9	42.4	67.7	48.3
Other Current Liabilities	-	-	0.0	13.9	29.7
Other Current liabilities, Total	44.6	49.9	42.4	81.6	78.0
Total Current Liabilities	99.6	97.3	87.2	172.3	111.6
Long Term Debt	-	-	-	-	80.0
Total Long Term Debt	0.0	0.0	0.0	0.0	80.0
Total Debt	0.0	0.0	0.0	25.7	80.0
Other Long Term Liabilities	16.6	17.5	12.3	21.3	16.1
Other Liabilities, Total	16.6	17.5	12.3	21.3	16.1
Total Liabilities	116.3	114.8	99.5	193.7	207.7
Preferred Stock - Non Redeemable	0.0	0.0	0.0	0.0	-
Preferred Stock - Non Redeemable, Net	0.0	0.0	0.0	0.0	-
Common Stock	564.1	559.1	551.2	543.4	513.2
Common Stock	564.1	559.1	551.2	543.4	513.2
Retained Earnings (Accumulated Deficit)	-403.8	-418.1	-433.2	-432.6	-378.6
Unrealized Gain (Loss)	2.1	1.3	2.9	5.3	-
Translation Adjustment	4.3	3.6	3.2	4.1	-
Other Comprehensive Income	-	-	-	-	13.6
Other Equity, Total	4.3	3.6	3.2	4.1	13.6
Total Equity	166.8	145.8	124.2	120.2	148.2
Total Liabilities & Shareholders’ Equity	283.1	260.6	223.7	313.9	355.9
Shares Outstanding - Common Stock Primary Issue	36.8	36.1	35.2	33.5	32.6
Total Common Shares Outstanding	36.8	36.1	35.2	33.5	32.6
Treasury Shares - Common Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Shares Outstanding - Preferred Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Total Preferred Stock Outstanding	0.0	0.0	0.0	0.0	0.0
Treasury Shares - Preferred Primary Issue	0.0	0.0	0.0	0.0	0.0
Employees	860	885	872	829	800
Number of Common Shareholders	355	390	455	546	597
Accumulated Intangible Amort, Suppl.	13.1	25.8	28.1	-	-
Deferred Revenue - Current	44.6	49.9	42.4	67.7	48.3
Deferred Revenue - Long Term	14.2	15.0	9.6	18.2	11.7
Total Operating Leases, Supplemental	26.5	30.3	30.0	19.3	6.3
Operating Lease Payments Due in Year 1	4.4	4.4	3.9	2.6	2.8
Operating Lease Payments Due in Year 2	4.2	4.1	3.5	2.3	1.1
Operating Lease Payments Due in Year 3	3.8	4.1	3.2	2.3	0.5
Operating Lease Payments Due in Year 4	3.7	3.7	3.2	2.1	0.4
Operating Lease Payments Due in Year 5	3.7	3.6	3.3	2.1	0.2
Operating Lease Pymts. Due in 2-3 Years	8.0	8.2	6.7	4.6	1.6
Operating Lease Pymts. Due in 4-5 Years	7.4	7.4	6.5	4.2	0.7
Oper. Lse. Pymts. Due in Year 6 & Beyond	6.7	10.4	12.9	7.9	1.2
Accrued Liabilities - Foreign	-2.3	-2.3	-2.4	-	-
Net Assets Recognized on Balance Sheet	-2.3	-2.3	-2.4	-	-

Annual Cash Flows

Financials in: USD (mil)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson- Sullivan & Co.	Peterson- Sullivan & Co.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Net Income/Starting Line	14.3	15.1	-0.6	-40.7	-10.6
Depreciation	8.6	9.4	8.5	10.2	13.4
Depreciation/Depletion	8.6	9.4	8.5	10.2	13.4
Deferred Taxes	-14.4	-0.3	-1.4	-0.7	0.2
Unusual Items	0.5	1.4	6.3	56.0	0.7
Other Non-Cash Items	3.6	4.9	6.7	8.8	8.8
Non-Cash Items	4.1	6.3	13.0	64.8	9.5
Accounts Receivable	34.2	-68.1	56.7	-71.3	19.7
Inventories	-51.0	-25.3	44.1	-31.7	-2.2
Prepaid Expenses	-2.3	-2.0	16.1	-19.8	-2.7
Accounts Payable	18.1	1.6	2.0	2.6	-8.5
Accrued Expenses	-9.5	1.5	-37.0	16.1	6.6
Other Liabilities	-6.0	12.6	-34.7	25.0	13.3
Changes in Working Capital	-16.5	-79.7	47.2	-79.1	26.2
Cash from Operating Activities	-3.8	-49.2	66.7	-45.5	38.7
Purchase of Fixed Assets	-4.9	-3.7	-7.6	-4.4	-2.8
Capital Expenditures	-4.9	-3.7	-7.6	-4.4	-2.8
Sale/Maturity of Investment	0.0	3.0	7.9	45.0	27.9
Purchase of Investments	0.0	0.0	-5.5	-1.7	-75.6
Other Investing Cash Flow	0.1	1.2	-2.5	7.3	15.0
Other Investing Cash Flow Items, Total	0.1	4.2	-0.1	50.6	-32.7
Cash from Investing Activities	-4.8	0.5	-7.7	46.2	-35.4
Sale/Issuance of Common	0.4	0.5	0.5	0.5	0.5
Common Stock, Net	0.4	0.5	0.5	0.5	0.5
Options Exercised	1.1	0.4	-0.4	0.1	1.3
Issuance (Retirement) of Stock, Net	1.5	0.9	0.1	0.5	1.7
Long Term Debt Reduction	0.0	0.0	-27.3	-47.7	0.0
Long Term Debt, Net	0.0	0.0	-27.3	-47.7	0.0
Issuance (Retirement) of Debt, Net	0.0	0.0	-27.3	-47.7	0.0
Cash from Financing Activities	1.5	0.9	-27.2	-47.2	1.7
Foreign Exchange Effects	0.2	0.1	0.9	-1.7	0.3
Net Change in Cash	-7.0	-47.6	32.6	-48.2	5.2
Net Cash - Beginning Balance	57.4	105.0	72.4	120.5	115.3
Net Cash - Ending Balance	50.4	57.4	105.0	72.4	120.5
Cash Interest Paid	0.1	0.0	0.5	2.2	2.4
Cash Taxes Paid	1.5	1.5	1.3	0.2	1.0

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009	Restated Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson- Sullivan & Co.	Peterson- Sullivan & Co.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified	Unqualified
Product Revenue	155.6	239.1	199.1	219.0	133.5
Service Revenue	80.5	80.3	84.9	63.9	52.7
Total Revenue	236.0	319.4	284.0	282.9	186.2
Cost of Product	101.0	155.0	130.4	133.7	89.5
Cost of Service	40.7	54.4	47.7	38.1	31.2
Research/Development	49.5	43.6	62.9	51.8	37.9
Marketing/Sales	26.1	31.1	26.6	25.0	22.1
General/Admin.	15.8	17.8	16.6	16.7	15.0
Restructuring	-	-	-	54.5	0.0
Restructuring	1.8	0.0	0.0	-	-
Total Operating Expense	234.9	301.9	284.3	319.7	195.7
Other Expense/Income	-1.0	-0.8	-0.4	0.6	1.1
Interest income	0.2	0.5	0.5	3.6	7.0
Interest expense	-0.3	-0.3	-1.3	-7.6	-8.1
Net Income Before Taxes	0.1	16.9	-1.5	-40.4	-9.5
Provision for Income Taxes	-14.2	1.9	-0.9	0.4	1.2
Net Income After Taxes	14.3	15.1	-0.6	-40.7	-10.6
Net Income Before Extra. Items	14.3	15.1	-0.6	-40.7	-10.6
Net Income	14.3	15.1	-0.6	-40.7	-10.6
Income Available to Com Excl ExtraOrd	14.3	15.1	-0.6	-40.7	-10.6
Income Available to Com Incl ExtraOrd	14.3	15.1	-0.6	-40.7	-10.6
Basic Weighted Average Shares	35.1	34.3	33.6	32.6	31.9
Basic EPS Excluding ExtraOrdinary Items	0.41	0.44	-0.02	-1.25	-0.33
Basic EPS Including ExtraOrdinary Item	0.41	0.44	-0.02	-1.25	-0.33
Dilution Adjustment	-	-	0.0	0.0	0.0
Diluted Net Income	14.3	15.1	-0.6	-40.7	-10.6
Diluted Weighted Average Shares	36.1	35.3	33.6	32.6	31.9
Diluted EPS Excluding ExtraOrd Items	0.40	0.43	-0.02	-1.25	-0.33
Diluted EPS Including ExtraOrd Items	0.40	0.43	-0.02	-1.25	-0.33
DPS-Common Stock	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	1.9	16.9	-1.5	14.1	-9.5
Inc Tax Ex Impact of Sp Items	-13.6	1.9	-0.9	19.4	1.2
Normalized Income After Taxes	15.5	15.1	-0.6	-5.4	-10.7
Normalized Inc. Avail to Com.	15.5	15.1	-0.6	-5.4	-10.7
Basic Normalized EPS	0.44	0.44	-0.02	-0.16	-0.33
Diluted Normalized EPS	0.43	0.43	-0.02	-0.16	-0.33
Interest Exp.	0.3	0.3	1.3	7.6	8.1
Research & Development Exp	49.5	43.6	62.9	51.8	37.9
Amort of Intangibles	-	0.2	0.2	0.2	0.2
Depreciation	7.6	8.1	7.1	8.6	11.2
Rent Expense	4.9	4.7	4.4	3.6	3.5
Advertising Expense	0.6	0.8	0.9	1.0	0.6
Federal	-0.1	0.6	-0.8	-0.1	0.0
State	0.0	0.3	0.0	0.0	0.0
Foreign	0.3	1.2	1.3	1.1	0.9
Current Tax - Total	0.2	2.1	0.5	1.1	1.0
Federal	-12.9	0.0	0.0	0.0	0.0
State	-0.9	0.0	0.0	0.0	0.0
Foreign	-0.5	-0.3	-1.4	-0.7	0.2
Deferred Tax - Total	-14.4	-0.3	-1.4	-0.7	0.2
Income Tax - Total	-14.2	1.9	-0.9	0.4	1.2
Loss from operations	-	17.5	-0.2	-36.9	-9.5
401(k) Savings Plan	1.1	2.1	0.2	1.7	1.6
Total Pension Expense	1.1	2.1	0.2	1.7	1.6

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009	Updated Normal 31-Dec-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson- Sullivan & Co.	Peterson- Sullivan & Co.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified	Unqualified
Cash/Equivalents	50.4	57.4	105.0	72.4	120.5
Restricted Cash	3.8	3.9	5.2	2.7	10.0
ST Investments	-	0.0	3.0	5.4	48.6
Accounts Rcvbl.	34.9	79.9	26.4	95.8	23.7
Unbilled Receivables	7.3	1.8	5.8	-	-
Advance Billings	24.5	22.4	3.0	-	-
Other Receivables	5.8	2.3	3.2	-	-
Doubtful Acct.	-0.1	-0.1	-0.2	-0.1	-0.1
Components & Subassemblies	29.4	11.5	10.7	16.8	20.8
Work in Progress	20.0	5.7	14.4	6.3	15.8
Finished Goods	48.5	32.1	3.9	57.3	19.0
Prepaid Engineering Expenses	-	-	-	-	0.0
Prepaid	12.9	5.9	5.5	30.0	4.1
Total Current Assets	237.4	222.7	185.9	286.5	262.5
Land	0.1	0.1	0.1	0.1	0.1
Building	11.5	11.1	10.8	11.0	10.0
Furn./Fix./Equip	12.3	10.4	15.6	13.3	12.2
Comp./Electric	69.8	68.8	90.0	84.3	76.6
Leasehold Imprv.	0.4	0.4	0.4	3.0	3.0
Depreciation	-77.6	-72.8	-97.0	-93.2	-84.9
Spare Inventory	-	-	-	1.9	3.0
Goodwill	-	-	-	-	65.4
Service Inventory, Gross	14.7	27.7	29.8	-	-
Accumulated Amortization	-13.1	-25.8	-28.1	-	-
Dfrd. Tax Asset	13.4	3.1	2.7	1.2	0.5
Service inventory, net	-	-	-	-	1.2
Other Assets	14.3	15.0	13.6	5.8	6.3
Total Assets	283.1	260.6	223.7	313.9	355.9
Accounts Payable	38.3	20.4	18.8	16.7	14.1
Payroll/Rel. Exp	11.3	20.7	16.2	23.7	12.0
Convertible notes, net of discount	-	-	0.0	25.7	-
Advance research and development	-	-	0.0	13.9	29.7
Other accrued liabilities	5.4	6.4	9.7	24.7	7.5
Convertible Notes Payable	-	-	-	-	0.0
Deferred Revenue	44.6	49.9	42.4	67.7	48.3
Total Current Liabilities	99.6	97.3	87.2	172.3	111.6
Notes Payable	-	-	-	-	80.0
Total Long Term Debt	-	-	-	-	80.0
Deferred Revenue	14.2	15.0	9.6	18.2	11.7
Other Liabilities	2.5	2.5	2.7	3.2	4.3
Total Liabilities	116.3	114.8	99.5	193.7	207.7
Preferred Stock	0.0	0.0	0.0	0.0	-
Common Stock	564.1	559.1	551.2	543.4	513.2
Accumulated Unrealized Gain	-	0.0	0.0	0.0	-
Accumulated Unrealized Gain on Cash Flow	2.1	1.3	2.9	5.3	-
Accumulated Currency Translation	4.3	3.6	3.2	4.1	-
Acc. Other Comprehensive Income	-	-	-	-	13.6
Accum. Deficit	-403.8	-418.1	-433.2	-432.6	-378.6
Total Equity	166.8	145.8	124.2	120.2	148.2
Total Liabilities & Shareholders' Equity	283.1	260.6	223.7	313.9	355.9
S/O-Common Stock	36.8	36.1	35.2	33.5	32.6
Total Common Shares Outstanding	36.8	36.1	35.2	33.5	32.6
T/S-Common Stock	0.0	0.0	0.0	0.0	0.0
S/O-Series A Preferred Stock	0.0	0.0	0.0	0.0	0.0
Total Preferred Shares Outstanding	0.0	0.0	0.0	0.0	0.0
T/S-Series A Preferred Stock	0.0	0.0	0.0	0.0	0.0
Accumulated Intangible Amort, Suppl.	13.1	25.8	28.1	-	-
Deferred Revenue - Current	44.6	49.9	42.4	67.7	48.3
Deferred Revenue - Long Term	14.2	15.0	9.6	18.2	11.7
Full-Time Employees	860	885	872	829	800
Number of Common Shareholders	355	390	455	546	597
Operating Lease Maturing Within 1 Year	4.4	4.4	3.9	2.6	2.8
Operating Lease Maturing Within 2 Years	4.2	4.1	3.5	2.3	1.1
Operating Lease Maturing Within 3 Years	3.8	4.1	3.2	2.3	0.5
Operating Lease Maturing Within 4 Years	3.7	3.7	3.2	2.1	0.4
Operating Lease Maturing Within 5 Years	3.7	3.6	3.3	2.1	0.2
Operating Leases Remaining Maturities	6.7	10.4	12.9	7.9	1.2
Total Operating Leases	26.5	30.3	30.0	19.3	6.3
Liability - German Subsidary's Plan	-2.3	-2.3	-2.4	-	-
Net Assets Recognized on Balance Sheet	-2.3	-2.3	-2.4	-	-

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson- Sullivan & Co.	Peterson- Sullivan & Co.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified	Unqualified
Net Income	14.3	15.1	-0.6	-40.7	-10.6
Depreciation	8.6	9.4	8.5	10.2	13.4
Loss on disposal of fixed assets	0.5	0.5	0.0	0.0	-
Stock Based Compensation Expense	3.6	4.9	5.8	3.4	3.2
Write-down Inventory	0.0	0.9	5.4	1.0	0.7
Impairment of goodwill	-	0.0	0.0	54.5	0.0
Amortization of Issuance Costs	0.0	0.0	0.0	0.5	0.5
Loss on repurchase of Notes	0.0	0.0	0.9	0.5	0.0
Amortization of convertible notes debt d	0.0	0.0	0.8	5.0	5.1
Dfrd. Income Tax	-14.4	-0.3	-1.4	-0.7	0.2
Accounts Receivable	34.2	-68.1	56.7	-71.3	19.7
Inventory	-51.0	-25.3	44.1	-31.7	-2.2
Prepaid/Other	-2.3	-2.0	16.1	-19.8	-2.7
Accounts Payable	18.1	1.6	2.0	2.6	-8.5
Payroll/Related Exp.	-9.5	1.5	-37.0	16.1	6.6
Other Non-Current Liabilities	-0.1	-0.2	-0.5	-1.1	-0.7
Deferred Revenue	-6.0	12.8	-34.2	26.1	13.9
Cash from Operating Activities	-3.8	-49.2	66.7	-45.5	38.7
Sale ST Invest.	0.0	3.0	7.9	45.0	27.9
Purch. ST Invest.	0.0	0.0	-5.5	-1.7	-75.6
Restricted Cash	0.1	1.2	-2.5	7.3	15.0
Capital Expeditures	-4.9	-3.7	-7.6	-4.4	-2.8
Cash from Investing Activities	-4.8	0.5	-7.7	46.2	-35.4
Issue Common through ESOP	0.4	0.5	0.5	0.5	0.5
Stock option repurchase	0.0	0.0	-0.7	0.0	0.0
Stock Options Exer.	1.1	0.4	0.3	0.1	1.3
Repayment of convertible notes	0.0	0.0	-27.3	-47.7	0.0
Capital Lease, Net	-	-	0.0	0.0	0.0
Cash from Financing Activities	1.5	0.9	-27.2	-47.2	1.7
Foreign Exchange Effects	0.2	0.1	0.9	-1.7	0.3
Net Change in Cash	-7.0	-47.6	32.6	-48.2	5.2
Net Cash - Beginning Balance	57.4	105.0	72.4	120.5	115.3
Net Cash - Ending Balance	50.4	57.4	105.0	72.4	120.5
Cash Interest Paid	0.1	0.0	0.5	2.2	2.4
Cash Taxes Paid	1.5	1.5	1.3	0.2	1.0

Financial Health

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Key Indicators USD (mil)
Â	Quarter Ending 31-Dec-2011	Quarter Ending Yr Ago	Annual Year End 31-Dec-2011	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue	91.6	-58.28%	236.0	-26.09%	-5.85%	1.32%
Research & Development	6.6	-36.19%	49.5	13.38%	-1.52%	11.23%
Operating Income	17.2	-68.06%	1.2	-93.38%	-	-
Income Available to Common Excl Extraord Items	31.0	-40.46%	14.3	-4.87%	-	-
Basic EPS Excl Extraord Items	0.88	-41.76%	0.41	-7.06%	-	-
Capital Expenditures	4.9	31.58%	4.9	31.58%	3.53%	13.49%
Cash from Operating Activities	-3.8	-	-3.8	-	-	-
Free Cash Flow	-8.7	-	-8.7	-	-	-
Total Assets	283.1	8.62%	283.1	8.62%	-3.38%	-3.45%
Total Liabilities	116.3	1.29%	116.3	1.29%	-15.63%	-9.93%
Total Long Term Debt	0.0	-	0.0	-	-	-
Employees	-	-	860	-2.82%	1.23%	2.29%
Total Common Shares Outstanding	36.8	1.93%	36.8	1.93%	3.14%	2.66%
Market Cap	237.9	-8.02%	237.9	-8.02%	50.56%	-9.09%

Key Ratios
Â	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Profitability
Gross Margin	39.98%	34.43%	37.28%	39.27%	35.15%
Operating Margin	0.49%	5.48%	-0.09%	-13.04%	-5.10%
Pretax Margin	0.06%	5.30%	-0.52%	-14.27%	-5.08%
Net Profit Margin	6.07%	4.72%	-0.21%	-14.41%	-5.71%
Financial Strength
Current Ratio	2.38	2.29	2.13	1.66	2.35
Long Term Debt/Equity	0.00	0.00	0.00	0.00	0.54
Total Debt/Equity	0.00	0.00	0.00	0.21	0.54
Management Effectiveness
Return on Assets	5.27%	6.22%	-0.22%	-12.17%	-3.07%
Return on Equity	9.17%	11.16%	-0.49%	-30.36%	-7.35%
Efficiency
Receivables Turnover	2.64	4.42	4.24	4.74	5.44
Inventory Turnover	1.93	5.35	3.26	2.53	2.11
Asset Turnover	0.87	1.32	1.06	0.84	0.54

Market Valuation USD (mil)
P/E (TTM)	19.67	.	Enterprise Value	222.5
Price/Sales (TTM)	1.16	.	Enterprise Value/Revenue (TTM)	0.94
Price/Book (MRQ)	1.64	.	Enterprise Value/EBITDA (TTM)	25.41
Market Cap as of 23-Mar-2012	272.9	.

Cray Inc.

Seattle, Washington, United States, Tel: 206-701-2000, URL: http://www.cray.com

Ratio Comparisons

Traded: NASDAQ: CRAY	Financials in: USD (actual units)
Industry: Computer Hardware	As of 23-Mar-2012
Sector: Technology

	Company	Industry	Sector	S&P 500
Valuation Ratios
P/E Excluding Extraordinary (TTM)	19.67	17.26	22.09	19.68
P/E High Excluding Extraordinary - Last 5 Yrs	16.79	50.12	42.91	32.79
P/E Low Excluding Extraordinary - Last 5 Yrs	16.29	11.01	12.36	10.71
Beta	1.53	1.30	1.19	1.00
Price/Revenue (TTM)	1.16	3.17	4.07	2.57
Price/Book (MRQ)	1.64	4.85	4.73	3.67
Price to Tangible Book (MRQ)	1.65	7.29	6.85	5.21
Price to Cash Flow Per Share (TTM)	11.90	15.13	17.48	14.22
Price to Free Cash Flow Per Share (TTM)	-	15.71	23.00	26.26
Dividends
Dividend Yield	-	0.69%	1.65%	2.26%
Dividend Per Share - 5 Yr Avg	0.00	0.16	0.71	1.99
Dividend 5 Yr Growth	-	-0.02%	7.13%	0.08%
Payout Ratio (TTM)	0.00%	1.91%	10.38%	25.98%
Growth Rates (%)
Revenue (MRQ) vs Qtr 1 Yr Ago	-58.28%	52.39%	28.50%	15.58%
Revenue (TTM) vs TTM 1 Yr Ago	-26.09%	47.71%	18.25%	17.69%
Revenue 5 Yr Growth	1.32%	27.16%	16.94%	8.97%
EPS (MRQ) vs Qtr 1 Yr Ago	-41.60%	64.51%	41.24%	19.49%
EPS (TTM) vs TTM 1 Yr Ago	0.13%	59.59%	49.53%	32.55%
EPS 5 Yr Growth	-	47.90%	20.44%	9.86%
Capital Spending 5 Yr Growth	13.49%	39.73%	9.78%	-2.04%
Financial Strength
Quick Ratio (MRQ)	1.40	1.35	1.98	1.24
Current Ratio (MRQ)	2.38	1.66	2.38	1.79
LT Debt/Equity (MRQ)	0.00	0.13	0.31	0.64
Total Debt/Equity (MRQ)	0.00	0.18	0.36	0.73
Interest Coverage (TTM)	35.06	13.77	11.30	13.80
Profitability Ratios (%)
Gross Margin (TTM)	39.98%	34.57%	55.32%	45.21%
Gross Margin - 5 Yr Avg	37.20%	31.35%	53.24%	44.91%
EBITD Margin (TTM)	4.13%	24.03%	25.78%	24.43%
EBITD Margin - 5 Yr Avg	1.18%	18.65%	21.39%	22.84%
Operating Margin (TTM)	0.49%	21.98%	22.29%	20.63%
Operating Margin - 5 Yr Avg	-2.14%	17.36%	17.62%	18.28%
Pretax Margin (TTM)	0.06%	22.12%	22.54%	17.95%
Pretax Margin - 5 Yr Avg	-2.62%	18.35%	18.75%	17.10%
Net Profit Margin (TTM)	6.07%	16.98%	17.35%	13.65%
Net Profit Margin - 5 Yr Avg	-1.73%	13.18%	12.72%	12.10%
Effective Tax Rate (TTM)	-10,514.07%	22.81%	23.73%	28.45%
Effective Tax rate - 5 Yr Avg	-	26.83%	24.82%	29.92%
Management Effectiveness (%)
Return on Assets (TTM)	5.27%	19.26%	12.89%	8.54%
Return on Assets - 5 Yr Avg	-1.54%	15.27%	10.70%	8.40%
Return on Investment (TTM)	8.26%	26.67%	13.09%	7.90%
Return on Investment - 5 Yr Avg	-2.54%	24.60%	11.50%	8.27%
Return on Equity (TTM)	9.17%	33.14%	25.23%	19.72%
Return on Equity - 5 Yr Avg	-3.26%	28.79%	21.05%	20.06%
Efficiency
Revenue/Employee (TTM)	274,472.10	1,302,455.68	617,868.03	927,613.77
Net Income/Employee (TTM)	16,661.63	257,714.89	132,630.14	116,121.92
Receivables Turnover (TTM)	2.77	9.31	8.08	13.25
Inventory Turnover (TTM)	1.93	48.93	19.61	14.53
Asset Turnover (TTM)	0.87	1.19	0.75	0.93

Annual Ratios

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Financial Strength
Current Ratio	2.38	2.29	2.13	1.66	2.35
Quick/Acid Test Ratio	1.23	1.68	1.68	1.01	1.73
Working Capital	137.7	125.4	98.8	114.2	150.8
Long Term Debt/Equity	0.00	0.00	0.00	0.00	0.54
Total Debt/Equity	0.00	0.00	0.00	0.21	0.54
Long Term Debt/Total Capital	0.00	0.00	0.00	0.00	0.35
Total Debt/Total Capital	0.00	0.00	0.00	0.18	0.35
Payout Ratio	0.00%	0.00%	0.00%	0.00%	0.00%
Effective Tax Rate	-10,514.07%	11.09%	-	-	-
Total Capital	166.8	145.8	124.2	145.9	228.2
Efficiency
Asset Turnover	0.87	1.32	1.06	0.84	0.54
Inventory Turnover	1.93	5.35	3.26	2.53	2.11
Days In Inventory	189.51	68.19	112.11	144.54	172.95
Receivables Turnover	2.64	4.42	4.24	4.74	5.44
Days Receivables Outstanding	138.12	82.55	86.01	76.98	67.08
Revenue/Employee	274,472	360,890	325,742	341,198	232,691
Operating Income/Employee	1,345	19,759	-279	-44,486	-11,871
EBITDA/Employee	10,183	29,138	8,093	-33,871	2,379
Profitability
Gross Margin	39.98%	34.43%	37.28%	39.27%	35.15%
Operating Margin	0.49%	5.48%	-0.09%	-13.04%	-5.10%
EBITDA Margin	3.71%	8.07%	2.48%	-9.93%	1.02%
EBIT Margin	0.49%	5.48%	-0.09%	-13.04%	-5.10%
Pretax Margin	0.06%	5.30%	-0.52%	-14.27%	-5.08%
Net Profit Margin	6.07%	4.72%	-0.21%	-14.41%	-5.71%
R&D Expense/Revenue	20.95%	13.66%	22.16%	18.30%	20.35%
COGS/Revenue	60.02%	65.57%	62.72%	60.73%	64.85%
SG&A Expense/Revenue	17.78%	15.30%	15.20%	14.75%	19.93%
Management Effectiveness
Return on Assets	5.27%	6.22%	-0.22%	-12.17%	-3.07%
Return on Equity	9.17%	11.16%	-0.49%	-30.36%	-7.35%
Valuation
Free Cash Flow/Share	-0.24	-1.47	1.68	-1.49	1.10
Operating Cash Flow/Share	-0.10	-1.36	1.90	-1.36	1.18

Current Market Multiples
Market Cap/Earnings (TTM)	19.68
Market Cap/Equity (MRQ)	1.64
Market Cap/Revenue (TTM)	1.16
Market Cap/EBIT (TTM)	235.87
Market Cap/EBITDA (TTM)	27.97
Enterprise Value/Earnings (TTM)	16.05
Enterprise Value/Equity (MRQ)	1.33
Enterprise Value/Revenue (TTM)	0.94
Enterprise Value/EBIT (TTM)	192.30
Enterprise Value/EBITDA (TTM)	22.80

Cray Inc.

Seattle, Washington, United States, Tel: 206-701-2000, URL: http://www.cray.com

Stock Report

Stock Snapshot

Traded: NASDAQ: CRAY

As of 23-Mar-2012    US Dollars

Recent Price	$7.42	EPS	$0.43
52 Week High	$8.39	Price/Sales	1.16
52 Week Low	$4.96	Price/Earnings	16.08
Avg. Volume (mil)	0.20	Price/Book	1.64
Market Value (mil)	$272.90	Beta	1.53

	Price % Change	Rel S&P 500%
4 Week	-5.24%	-7.37%
13 Week	13.98%	3.23%
52 Week	18.53%	11.11%
Year to Date	14.68%	3.23%

2 Year Weekly End Price & Volume

Stock History

Market Cap History
	31-Dec-11	% Chg	30-Sep-11	% Chg	30-Jun-11	% Chg	31-Mar-11	% Chg	31-Dec-10	% Chg
Total Common Shares Outstanding	37	1.6	36	-0.2	36	0.3	36	0.3	36	0.3
Market Cap	237.9	23.8	192.2	-17.2	232.2	-0.5	233.3	-9.8	258.6	9.0

Yearly Price History
	2012	% Chg	2011	% Chg	2010	% Chg	2009	% Chg	2008	% Chg
High Price	8.39	0.1	8.38	8.8	7.70	-18.9	9.49	35.8	6.99	-51.5
Low Price	6.09	22.8	4.96	10.0	4.51	146.4	1.83	59.1	1.15	-79.2
Year End Price	7.42	14.7	6.47	-9.8	7.17	11.7	6.42	208.7	2.08	-65.3

Monthly Price History
Price Ending Date	Open	High	Low	Close	Volume
23-Mar-12	8.05	8.13	6.91	7.42	3,829,373
29-Feb-12	7.49	8.39	7.46	7.97	3,843,583
31-Jan-12	6.67	7.49	6.09	7.45	4,117,945
30-Dec-11	6.04	6.70	5.97	6.47	3,504,024
30-Nov-11	6.27	6.44	5.29	6.18	6,583,214
31-Oct-11	5.23	6.85	4.96	6.33	4,013,192
30-Sep-11	5.70	5.77	5.00	5.31	3,825,581
31-Aug-11	6.15	6.23	4.97	5.67	4,103,887
29-Jul-11	6.38	6.52	5.89	6.04	2,199,195
30-Jun-11	6.39	6.49	5.83	6.40	4,376,809
31-May-11	6.72	6.85	5.93	6.40	4,568,679
29-Apr-11	6.51	6.87	6.04	6.72	3,181,796
31-Mar-11	7.38	8.10	6.14	6.45	4,193,703

Annual Income Statement

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009	Restated Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson- Sullivan & Co.	Peterson- Sullivan & Co.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Net Sales	236.0	319.4	284.0	282.9	186.2
Revenue	236.0	319.4	284.0	282.9	186.2
Total Revenue	236.0	319.4	284.0	282.9	186.2
Cost of Revenue	141.7	209.4	178.2	171.8	120.7
Cost of Revenue, Total	141.7	209.4	178.2	171.8	120.7
Gross Profit	94.4	110.0	105.9	111.1	65.4
Selling/General/Administrative Expense	42.0	48.9	43.2	41.7	37.1
Total Selling/General/Administrative Expenses	42.0	48.9	43.2	41.7	37.1
Research & Development	49.5	43.6	62.9	51.8	37.9
Restructuring Charge	1.8	0.0	0.0	-	-
Impairment-Assets Held for Use	-	-	-	54.5	0.0
Unusual Expense (Income)	1.8	0.0	0.0	54.5	0.0
Total Operating Expense	234.9	301.9	284.3	319.7	195.7
Operating Income	1.2	17.5	-0.2	-36.9	-9.5
Interest Expense - Non-Operating	-0.3	-0.3	-1.3	-7.6	-8.1
Interest Expense, Net Non-Operating	-0.3	-0.3	-1.3	-7.6	-8.1
Interest Income - Non-Operating	0.2	0.5	0.5	3.6	7.0
Interest/Investment Income - Non-Operating	0.2	0.5	0.5	3.6	7.0
Interest Income (Expense) - Net Non-Operating Total	0.0	0.2	-0.8	-4.1	-1.1
Other Non-Operating Income (Expense)	-1.0	-0.8	-0.4	0.6	1.1
Other, Net	-1.0	-0.8	-0.4	0.6	1.1
Income Before Tax	0.1	16.9	-1.5	-40.4	-9.5
Total Income Tax	-14.2	1.9	-0.9	0.4	1.2
Income After Tax	14.3	15.1	-0.6	-40.7	-10.6
Net Income Before Extraord Items	14.3	15.1	-0.6	-40.7	-10.6
Net Income	14.3	15.1	-0.6	-40.7	-10.6
Income Available to Common Excl Extraord Items	14.3	15.1	-0.6	-40.7	-10.6
Income Available to Common Incl Extraord Items	14.3	15.1	-0.6	-40.7	-10.6
Basic/Primary Weighted Average Shares	35.1	34.3	33.6	32.6	31.9
Basic EPS Excl Extraord Items	0.41	0.44	-0.02	-1.25	-0.33
Basic/Primary EPS Incl Extraord Items	0.41	0.44	-0.02	-1.25	-0.33
Dilution Adjustment	-	-	0.0	0.0	0.0
Diluted Net Income	14.3	15.1	-0.6	-40.7	-10.6
Diluted Weighted Average Shares	36.1	35.3	33.6	32.6	31.9
Diluted EPS Excl Extraord Items	0.40	0.43	-0.02	-1.25	-0.33
Diluted EPS Incl Extraord Items	0.40	0.43	-0.02	-1.25	-0.33
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Interest Expense, Supplemental	0.3	0.3	1.3	7.6	8.1
Depreciation, Supplemental	7.6	8.1	7.1	8.6	11.2
Total Special Items	1.8	0.0	0.0	54.5	0.0
Normalized Income Before Tax	1.9	16.9	-1.5	14.1	-9.5
Effect of Special Items on Income Taxes	0.6	0.0	0.0	19.1	0.0
Inc Tax Ex Impact of Sp Items	-13.6	1.9	-0.9	19.4	1.2
Normalized Income After Tax	15.5	15.1	-0.6	-5.4	-10.7
Normalized Inc. Avail to Com.	15.5	15.1	-0.6	-5.4	-10.7
Basic Normalized EPS	0.44	0.44	-0.02	-0.16	-0.33
Diluted Normalized EPS	0.43	0.43	-0.02	-0.16	-0.33
Amort of Intangibles, Supplemental	-	0.2	0.2	0.2	0.2
Rental Expenses	4.9	4.7	4.4	3.6	3.5
Advertising Expense, Supplemental	0.6	0.8	0.9	1.0	0.6
Research & Development Exp, Supplemental	49.5	43.6	62.9	51.8	37.9
Reported Operating Profit	-	17.5	-0.2	-36.9	-9.5
Normalized EBIT	2.9	17.5	-0.2	17.6	-9.5
Normalized EBITDA	10.5	25.8	7.1	26.4	1.9
Current Tax - Domestic	-0.1	0.6	-0.8	-0.1	0.0
Current Tax - Foreign	0.3	1.2	1.3	1.1	0.9
Current Tax - Local	0.0	0.3	0.0	0.0	0.0
Current Tax - Total	0.2	2.1	0.5	1.1	1.0
Deferred Tax - Domestic	-12.9	0.0	0.0	0.0	0.0
Deferred Tax - Foreign	-0.5	-0.3	-1.4	-0.7	0.2
Deferred Tax - Local	-0.9	0.0	0.0	0.0	0.0
Deferred Tax - Total	-14.4	-0.3	-1.4	-0.7	0.2
Income Tax - Total	-14.2	1.9	-0.9	0.4	1.2
Defined Contribution Expense - Domestic	1.1	2.1	0.2	1.7	1.6
Total Pension Expense	1.1	2.1	0.2	1.7	1.6

Interim Income Statement

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011	31-Dec-2010
Period Length	3 Months	3 Months	3 Months	3 Months	3 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011	Updated Normal 31-Dec-2010
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Net Sales	91.6	36.7	67.9	39.9	219.4
Revenue	91.6	36.7	67.9	39.9	219.4
Total Revenue	91.6	36.7	67.9	39.9	219.4
Cost of Revenue	56.4	20.4	42.2	22.7	138.2
Cost of Revenue, Total	56.4	20.4	42.2	22.7	138.2
Gross Profit	35.1	16.3	25.8	17.2	81.3
Selling/General/Administrative Expense	11.4	9.9	10.2	10.5	17.0
Total Selling/General/Administrative Expenses	11.4	9.9	10.2	10.5	17.0
Research & Development	6.6	17.9	18.5	6.5	10.3
Restructuring Charge	-0.1	0.7	0.1	1.1	-
Impairment-Assets Held for Use	-	-	-	-	0.0
Unusual Expense (Income)	-0.1	0.7	0.1	1.1	0.0
Total Operating Expense	74.3	49.0	70.8	40.7	165.5
Operating Income	17.2	-12.3	-2.9	-0.9	53.9
Interest Expense - Non-Operating	-0.2	0.0	-0.1	0.0	-0.2
Interest Expense, Net Non-Operating	-0.2	0.0	-0.1	0.0	-0.2
Interest Income - Non-Operating	0.1	0.1	0.1	0.0	0.4
Interest/Investment Income - Non-Operating	0.1	0.1	0.1	0.0	0.4
Interest Income (Expense) - Net Non-Operating Total	-0.1	0.0	0.0	0.0	0.1
Other Non-Operating Income (Expense)	-0.7	0.0	0.2	-0.5	-0.6
Other, Net	-0.7	0.0	0.2	-0.5	-0.6
Income Before Tax	16.5	-12.2	-2.7	-1.4	53.5
Total Income Tax	-14.5	0.0	0.3	0.1	1.4
Income After Tax	31.0	-12.2	-3.0	-1.5	52.1
Net Income Before Extraord Items	31.0	-12.2	-3.0	-1.5	52.1
Net Income	31.0	-12.2	-3.0	-1.5	52.1
Income Available to Common Excl Extraord Items	31.0	-12.2	-3.0	-1.5	52.1
Income Available to Common Incl Extraord Items	31.0	-12.2	-3.0	-1.5	52.1
Basic/Primary Weighted Average Shares	35.4	35.3	35.0	34.8	34.6
Basic EPS Excl Extraord Items	0.88	-0.35	-0.08	-0.04	1.50
Basic/Primary EPS Incl Extraord Items	0.88	-0.35	-0.08	-0.04	1.50
Dilution Adjustment	-	0.0	0.0	0.0	-
Diluted Net Income	31.0	-12.2	-3.0	-1.5	52.1
Diluted Weighted Average Shares	36.4	35.3	35.0	34.8	35.7
Diluted EPS Excl Extraord Items	0.85	-0.35	-0.08	-0.04	1.46
Diluted EPS Incl Extraord Items	0.85	-0.35	-0.08	-0.04	1.46
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Interest Expense, Supplemental	0.2	0.0	0.1	0.0	0.2
Depreciation, Supplemental	2.2	2.1	2.1	2.2	2.6
Total Special Items	-0.1	0.7	0.1	1.1	0.0
Normalized Income Before Tax	16.4	-11.6	-2.6	-0.3	53.5
Effect of Special Items on Income Taxes	0.0	0.2	0.0	0.4	0.0
Inc Tax Ex Impact of Sp Items	-14.6	0.2	0.3	0.5	1.4
Normalized Income After Tax	31.0	-11.8	-2.9	-0.8	52.1
Normalized Inc. Avail to Com.	31.0	-11.8	-2.9	-0.8	52.1
Basic Normalized EPS	0.87	-0.33	-0.08	-0.02	1.50
Diluted Normalized EPS	0.85	-0.33	-0.08	-0.02	1.46
Research & Development Exp, Supplemental	6.6	17.9	18.5	6.5	10.3
Reported Gross Profit	-	16.3	25.8	17.2	-
Reported Operating Profit	-	12.3	2.9	0.9	-
Normalized EBIT	17.1	-11.6	-2.9	0.3	53.9
Normalized EBITDA	19.4	-9.5	-0.7	2.4	56.5

Annual Balance Sheet

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009	Updated Normal 31-Dec-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson- Sullivan & Co.	Peterson- Sullivan & Co.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Cash & Equivalents	50.4	57.4	105.0	72.4	120.5
Short Term Investments	-	0.0	3.0	5.4	48.6
Cash and Short Term Investments	50.4	57.4	108.0	77.7	169.1
Accounts Receivable - Trade, Gross	66.7	104.1	35.1	95.8	23.7
Provision for Doubtful Accounts	-0.1	-0.1	-0.2	-0.1	-0.1
Trade Accounts Receivable - Net	66.6	104.0	35.0	95.7	23.6
Other Receivables	5.8	2.3	3.2	-	-
Total Receivables, Net	72.4	106.3	38.2	95.7	23.6
Inventories - Finished Goods	48.5	32.1	3.9	57.3	19.0
Inventories - Work In Progress	20.0	5.7	14.4	6.3	15.8
Inventories - Raw Materials	29.4	11.5	10.7	16.8	20.8
Total Inventory	97.9	49.2	29.0	80.4	55.6
Prepaid Expenses	12.9	5.9	5.5	30.0	4.1
Restricted Cash - Current	3.8	3.9	5.2	2.7	10.0
Other Current Assets, Total	3.8	3.9	5.2	2.7	10.0
Total Current Assets	237.4	222.7	185.9	286.5	262.5
Buildings	11.9	11.4	11.2	14.0	13.0
Land/Improvements	0.1	0.1	0.1	0.1	0.1
Machinery/Equipment	82.1	79.2	105.5	97.5	88.9
Property/Plant/Equipment - Gross	94.1	90.8	116.8	111.6	102.0
Accumulated Depreciation	-77.6	-72.8	-97.0	-93.2	-84.9
Property/Plant/Equipment - Net	16.5	18.0	19.8	18.4	17.0
Goodwill, Net	-	-	-	-	65.4
Intangibles - Gross	14.7	27.7	29.8	-	-
Accumulated Intangible Amortization	-13.1	-25.8	-28.1	-	-
Intangibles, Net	1.6	1.9	1.7	1.9	4.2
Deferred Income Tax - Long Term Asset	13.4	3.1	2.7	1.2	0.5
Other Long Term Assets	14.3	15.0	13.6	5.8	6.3
Other Long Term Assets, Total	27.6	18.1	16.2	7.0	6.8
Total Assets	283.1	260.6	223.7	313.9	355.9
Accounts Payable	38.3	20.4	18.8	16.7	14.1
Accrued Expenses	16.7	27.0	26.0	48.3	19.5
Notes Payable/Short Term Debt	0.0	0.0	0.0	25.7	0.0
Customer Advances	44.6	49.9	42.4	67.7	48.3
Other Current Liabilities	-	-	0.0	13.9	29.7
Other Current liabilities, Total	44.6	49.9	42.4	81.6	78.0
Total Current Liabilities	99.6	97.3	87.2	172.3	111.6
Long Term Debt	-	-	-	-	80.0
Total Long Term Debt	0.0	0.0	0.0	0.0	80.0
Total Debt	0.0	0.0	0.0	25.7	80.0
Other Long Term Liabilities	16.6	17.5	12.3	21.3	16.1
Other Liabilities, Total	16.6	17.5	12.3	21.3	16.1
Total Liabilities	116.3	114.8	99.5	193.7	207.7
Preferred Stock - Non Redeemable	0.0	0.0	0.0	0.0	-
Preferred Stock - Non Redeemable, Net	0.0	0.0	0.0	0.0	-
Common Stock	564.1	559.1	551.2	543.4	513.2
Common Stock	564.1	559.1	551.2	543.4	513.2
Retained Earnings (Accumulated Deficit)	-403.8	-418.1	-433.2	-432.6	-378.6
Unrealized Gain (Loss)	2.1	1.3	2.9	5.3	-
Translation Adjustment	4.3	3.6	3.2	4.1	-
Other Comprehensive Income	-	-	-	-	13.6
Other Equity, Total	4.3	3.6	3.2	4.1	13.6
Total Equity	166.8	145.8	124.2	120.2	148.2
Total Liabilities & Shareholders’ Equity	283.1	260.6	223.7	313.9	355.9
Shares Outstanding - Common Stock Primary Issue	36.8	36.1	35.2	33.5	32.6
Total Common Shares Outstanding	36.8	36.1	35.2	33.5	32.6
Treasury Shares - Common Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Shares Outstanding - Preferred Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Total Preferred Stock Outstanding	0.0	0.0	0.0	0.0	0.0
Treasury Shares - Preferred Primary Issue	0.0	0.0	0.0	0.0	0.0
Employees	860	885	872	829	800
Number of Common Shareholders	355	390	455	546	597
Accumulated Intangible Amort, Suppl.	13.1	25.8	28.1	-	-
Deferred Revenue - Current	44.6	49.9	42.4	67.7	48.3
Deferred Revenue - Long Term	14.2	15.0	9.6	18.2	11.7
Total Operating Leases, Supplemental	26.5	30.3	30.0	19.3	6.3
Operating Lease Payments Due in Year 1	4.4	4.4	3.9	2.6	2.8
Operating Lease Payments Due in Year 2	4.2	4.1	3.5	2.3	1.1
Operating Lease Payments Due in Year 3	3.8	4.1	3.2	2.3	0.5
Operating Lease Payments Due in Year 4	3.7	3.7	3.2	2.1	0.4
Operating Lease Payments Due in Year 5	3.7	3.6	3.3	2.1	0.2
Operating Lease Pymts. Due in 2-3 Years	8.0	8.2	6.7	4.6	1.6
Operating Lease Pymts. Due in 4-5 Years	7.4	7.4	6.5	4.2	0.7
Oper. Lse. Pymts. Due in Year 6 & Beyond	6.7	10.4	12.9	7.9	1.2
Accrued Liabilities - Foreign	-2.3	-2.3	-2.4	-	-
Net Assets Recognized on Balance Sheet	-2.3	-2.3	-2.4	-	-

Interim Balance Sheet

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011	31-Dec-2010
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011	Updated Normal 31-Dec-2010
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Cash & Equivalents	50.4	88.3	131.8	122.0	57.4
Short Term Investments	-	-	-	-	0.0
Cash and Short Term Investments	50.4	88.3	131.8	122.0	57.4
Accounts Receivable - Trade, Gross	66.7	21.7	20.2	35.0	104.1
Provision for Doubtful Accounts	-0.1	-0.1	-0.1	-0.1	-0.1
Trade Accounts Receivable - Net	66.6	21.6	20.1	34.9	104.0
Other Receivables	5.8	4.6	0.2	0.2	2.3
Total Receivables, Net	72.4	26.2	20.3	35.0	106.3
Inventories - Finished Goods	48.5	34.5	10.8	39.2	32.1
Inventories - Work In Progress	20.0	26.4	17.2	5.2	5.7
Inventories - Raw Materials	29.4	33.8	20.0	8.3	11.5
Total Inventory	97.9	94.7	48.0	52.7	49.2
Prepaid Expenses	12.9	7.5	6.4	6.2	5.9
Restricted Cash - Current	3.8	3.8	3.8	3.9	3.9
Other Current Assets, Total	3.8	3.8	3.8	3.9	3.9
Total Current Assets	237.4	220.5	210.3	219.8	222.7
Property/Plant/Equipment - Net	16.5	16.9	16.9	16.8	18.0
Intangibles, Net	1.6	1.6	1.7	1.8	1.9
Deferred Income Tax - Long Term Asset	13.4	3.0	3.0	3.1	3.1
Other Long Term Assets	14.3	13.6	12.9	13.0	15.0
Other Long Term Assets, Total	27.6	16.6	16.0	16.1	18.1
Total Assets	283.1	255.5	244.9	254.5	260.6
Accounts Payable	38.3	50.6	22.9	14.1	20.4
Accrued Expenses	16.7	14.8	16.3	17.8	27.0
Notes Payable/Short Term Debt	0.0	0.0	0.0	0.0	0.0
Customer Advances	44.6	44.5	49.0	62.2	49.9
Other Current liabilities, Total	44.6	44.5	49.0	62.2	49.9
Total Current Liabilities	99.6	109.9	88.2	94.2	97.3
Total Long Term Debt	0.0	0.0	0.0	0.0	0.0
Total Debt	0.0	0.0	0.0	0.0	0.0
Other Long Term Liabilities	16.6	11.9	15.2	15.6	17.5
Other Liabilities, Total	16.6	11.9	15.2	15.6	17.5
Total Liabilities	116.3	121.7	103.3	109.8	114.8
Preferred Stock - Non Redeemable	0.0	0.0	0.0	0.0	0.0
Preferred Stock - Non Redeemable, Net	0.0	0.0	0.0	0.0	0.0
Common Stock	564.1	562.6	561.9	560.7	559.1
Common Stock	564.1	562.6	561.9	560.7	559.1
Retained Earnings (Accumulated Deficit)	-403.8	-434.8	-422.6	-419.6	-418.1
Other Comprehensive Income	6.5	6.0	2.2	3.6	4.9
Other Equity, Total	6.5	6.0	2.2	3.6	4.9
Total Equity	166.8	133.8	141.5	144.7	145.8
Total Liabilities & Shareholders’ Equity	283.1	255.5	244.9	254.5	260.6
Shares Outstanding - Common Stock Primary Issue	36.8	36.2	36.3	36.2	36.1
Total Common Shares Outstanding	36.8	36.2	36.3	36.2	36.1
Treasury Shares - Common Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Shares Outstanding - Preferred Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Total Preferred Stock Outstanding	0.0	0.0	0.0	0.0	0.0
Treasury Shares - Preferred Primary Issue	0.0	0.0	0.0	0.0	0.0
Deferred Revenue - Current	44.6	44.5	49.0	62.2	49.9
Deferred Revenue - Long Term	14.2	9.2	11.9	12.9	15.0
Total Operating Leases, Supplemental	26.5	27.2	28.1	29.1	38.1
Operating Lease Payments Due in Year 1	4.4	1.1	2.2	3.3	4.4
Operating Lease Payments Due in Year 2	4.2	4.2	4.1	4.1	4.1
Operating Lease Payments Due in Year 3	3.8	4.2	4.1	4.1	8.2
Operating Lease Payments Due in Year 4	3.7	3.7	3.7	3.7	3.7
Operating Lease Payments Due in Year 5	3.7	3.7	3.7	3.7	7.4
Operating Lease Pymts. Due in 2-3 Years	8.0	8.3	8.2	8.2	12.2
Operating Lease Pymts. Due in 4-5 Years	7.4	7.4	7.4	7.4	11.1
Oper. Lse. Pymts. Due in Year 6 & Beyond	6.7	10.4	10.4	10.4	10.4

Annual Cash Flows

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson- Sullivan & Co.	Peterson- Sullivan & Co.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Net Income/Starting Line	14.3	15.1	-0.6	-40.7	-10.6
Depreciation	8.6	9.4	8.5	10.2	13.4
Depreciation/Depletion	8.6	9.4	8.5	10.2	13.4
Deferred Taxes	-14.4	-0.3	-1.4	-0.7	0.2
Unusual Items	0.5	1.4	6.3	56.0	0.7
Other Non-Cash Items	3.6	4.9	6.7	8.8	8.8
Non-Cash Items	4.1	6.3	13.0	64.8	9.5
Accounts Receivable	34.2	-68.1	56.7	-71.3	19.7
Inventories	-51.0	-25.3	44.1	-31.7	-2.2
Prepaid Expenses	-2.3	-2.0	16.1	-19.8	-2.7
Accounts Payable	18.1	1.6	2.0	2.6	-8.5
Accrued Expenses	-9.5	1.5	-37.0	16.1	6.6
Other Liabilities	-6.0	12.6	-34.7	25.0	13.3
Changes in Working Capital	-16.5	-79.7	47.2	-79.1	26.2
Cash from Operating Activities	-3.8	-49.2	66.7	-45.5	38.7
Purchase of Fixed Assets	-4.9	-3.7	-7.6	-4.4	-2.8
Capital Expenditures	-4.9	-3.7	-7.6	-4.4	-2.8
Sale/Maturity of Investment	0.0	3.0	7.9	45.0	27.9
Purchase of Investments	0.0	0.0	-5.5	-1.7	-75.6
Other Investing Cash Flow	0.1	1.2	-2.5	7.3	15.0
Other Investing Cash Flow Items, Total	0.1	4.2	-0.1	50.6	-32.7
Cash from Investing Activities	-4.8	0.5	-7.7	46.2	-35.4
Sale/Issuance of Common	0.4	0.5	0.5	0.5	0.5
Common Stock, Net	0.4	0.5	0.5	0.5	0.5
Options Exercised	1.1	0.4	-0.4	0.1	1.3
Issuance (Retirement) of Stock, Net	1.5	0.9	0.1	0.5	1.7
Long Term Debt Reduction	0.0	0.0	-27.3	-47.7	0.0
Long Term Debt, Net	0.0	0.0	-27.3	-47.7	0.0
Issuance (Retirement) of Debt, Net	0.0	0.0	-27.3	-47.7	0.0
Cash from Financing Activities	1.5	0.9	-27.2	-47.2	1.7
Foreign Exchange Effects	0.2	0.1	0.9	-1.7	0.3
Net Change in Cash	-7.0	-47.6	32.6	-48.2	5.2
Net Cash - Beginning Balance	57.4	105.0	72.4	120.5	115.3
Net Cash - Ending Balance	50.4	57.4	105.0	72.4	120.5
Cash Interest Paid	0.1	0.0	0.5	2.2	2.4
Cash Taxes Paid	1.5	1.5	1.3	0.2	1.0

Interim Cash Flows

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011	31-Dec-2010
Period Length	12 Months	9 Months	6 Months	3 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011	Updated Normal 31-Dec-2010
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Net Income/Starting Line	14.3	-16.7	-4.4	-1.5	15.1
Depreciation	8.6	6.4	4.3	2.2	9.4
Depreciation/Depletion	8.6	6.4	4.3	2.2	9.4
Deferred Taxes	-14.4	0.1	0.1	0.0	-0.3
Unusual Items	0.5	0.1	0.1	0.1	1.4
Other Non-Cash Items	3.6	2.7	2.1	1.1	4.9
Non-Cash Items	4.1	2.8	2.2	1.2	6.3
Accounts Receivable	34.2	80.3	85.6	71.2	-68.1
Inventories	-51.0	-46.8	0.5	-3.5	-25.3
Prepaid Expenses	-2.3	-0.3	1.5	1.7	-2.0
Accounts Payable	18.1	30.3	2.5	-6.2	1.6
Accrued Expenses	-9.5	-11.6	-13.4	-10.7	1.5
Other Liabilities	-6.0	-10.9	-3.2	10.4	12.6
Changes in Working Capital	-16.5	41.0	73.4	62.9	-79.7
Cash from Operating Activities	-3.8	33.6	75.5	64.8	-49.2
Purchase of Fixed Assets	-4.9	-3.7	-2.3	-1.0	-3.7
Capital Expenditures	-4.9	-3.7	-2.3	-1.0	-3.7
Sale/Maturity of Investment	0.0	0.0	0.0	-	3.0
Purchase of Investments	0.0	-	-	-	0.0
Other Investing Cash Flow	0.1	0.1	0.1	-	1.2
Other Investing Cash Flow Items, Total	0.1	0.1	0.1	-	4.2
Cash from Investing Activities	-4.8	-3.6	-2.1	-1.0	0.5
Sale/Issuance of Common	0.4	0.3	0.2	0.1	0.5
Common Stock, Net	0.4	0.3	0.2	0.1	0.5
Options Exercised	1.1	0.6	0.6	0.5	0.4
Issuance (Retirement) of Stock, Net	1.5	0.8	0.7	0.6	0.9
Long Term Debt Reduction	0.0	-	-	-	0.0
Long Term Debt, Net	0.0	-	-	-	0.0
Issuance (Retirement) of Debt, Net	0.0	-	-	-	0.0
Cash from Financing Activities	1.5	0.8	0.7	0.6	0.9
Foreign Exchange Effects	0.2	0.0	0.3	0.2	0.1
Net Change in Cash	-7.0	30.9	74.4	64.6	-47.6
Net Cash - Beginning Balance	57.4	57.4	57.4	57.4	105.0
Net Cash - Ending Balance	50.4	88.3	131.8	122.0	57.4
Cash Interest Paid	0.1	0.1	0.0	-	0.0
Cash Taxes Paid	1.5	1.5	1.4	1.4	1.5

Annual Income Statement

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009	Restated Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson- Sullivan & Co.	Peterson- Sullivan & Co.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified	Unqualified
Product Revenue	155.6	239.1	199.1	219.0	133.5
Service Revenue	80.5	80.3	84.9	63.9	52.7
Total Revenue	236.0	319.4	284.0	282.9	186.2
Cost of Product	101.0	155.0	130.4	133.7	89.5
Cost of Service	40.7	54.4	47.7	38.1	31.2
Research/Development	49.5	43.6	62.9	51.8	37.9
Marketing/Sales	26.1	31.1	26.6	25.0	22.1
General/Admin.	15.8	17.8	16.6	16.7	15.0
Restructuring	-	-	-	54.5	0.0
Restructuring	1.8	0.0	0.0	-	-
Total Operating Expense	234.9	301.9	284.3	319.7	195.7
Other Expense/Income	-1.0	-0.8	-0.4	0.6	1.1
Interest income	0.2	0.5	0.5	3.6	7.0
Interest expense	-0.3	-0.3	-1.3	-7.6	-8.1
Net Income Before Taxes	0.1	16.9	-1.5	-40.4	-9.5
Provision for Income Taxes	-14.2	1.9	-0.9	0.4	1.2
Net Income After Taxes	14.3	15.1	-0.6	-40.7	-10.6
Net Income Before Extra. Items	14.3	15.1	-0.6	-40.7	-10.6
Net Income	14.3	15.1	-0.6	-40.7	-10.6
Income Available to Com Excl ExtraOrd	14.3	15.1	-0.6	-40.7	-10.6
Income Available to Com Incl ExtraOrd	14.3	15.1	-0.6	-40.7	-10.6
Basic Weighted Average Shares	35.1	34.3	33.6	32.6	31.9
Basic EPS Excluding ExtraOrdinary Items	0.41	0.44	-0.02	-1.25	-0.33
Basic EPS Including ExtraOrdinary Item	0.41	0.44	-0.02	-1.25	-0.33
Dilution Adjustment	-	-	0.0	0.0	0.0
Diluted Net Income	14.3	15.1	-0.6	-40.7	-10.6
Diluted Weighted Average Shares	36.1	35.3	33.6	32.6	31.9
Diluted EPS Excluding ExtraOrd Items	0.40	0.43	-0.02	-1.25	-0.33
Diluted EPS Including ExtraOrd Items	0.40	0.43	-0.02	-1.25	-0.33
DPS-Common Stock	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	1.9	16.9	-1.5	14.1	-9.5
Inc Tax Ex Impact of Sp Items	-13.6	1.9	-0.9	19.4	1.2
Normalized Income After Taxes	15.5	15.1	-0.6	-5.4	-10.7
Normalized Inc. Avail to Com.	15.5	15.1	-0.6	-5.4	-10.7
Basic Normalized EPS	0.44	0.44	-0.02	-0.16	-0.33
Diluted Normalized EPS	0.43	0.43	-0.02	-0.16	-0.33
Interest Exp.	0.3	0.3	1.3	7.6	8.1
Research & Development Exp	49.5	43.6	62.9	51.8	37.9
Amort of Intangibles	-	0.2	0.2	0.2	0.2
Depreciation	7.6	8.1	7.1	8.6	11.2
Rent Expense	4.9	4.7	4.4	3.6	3.5
Advertising Expense	0.6	0.8	0.9	1.0	0.6
Federal	-0.1	0.6	-0.8	-0.1	0.0
State	0.0	0.3	0.0	0.0	0.0
Foreign	0.3	1.2	1.3	1.1	0.9
Current Tax - Total	0.2	2.1	0.5	1.1	1.0
Federal	-12.9	0.0	0.0	0.0	0.0
State	-0.9	0.0	0.0	0.0	0.0
Foreign	-0.5	-0.3	-1.4	-0.7	0.2
Deferred Tax - Total	-14.4	-0.3	-1.4	-0.7	0.2
Income Tax - Total	-14.2	1.9	-0.9	0.4	1.2
Loss from operations	-	17.5	-0.2	-36.9	-9.5
401(k) Savings Plan	1.1	2.1	0.2	1.7	1.6
Total Pension Expense	1.1	2.1	0.2	1.7	1.6

Interim Income Statement

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011	31-Dec-2010
Period Length	3 Months	3 Months	3 Months	3 Months	3 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011	Updated Normal 31-Dec-2010
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Product Revenue	75.2	16.0	47.7	16.7	197.3
Service Revenue	16.3	20.7	20.3	23.2	22.1
Total Revenue	91.6	36.7	67.9	39.9	219.4
Cost of Product	46.9	11.2	31.6	11.3	124.1
Cost of Service	9.5	9.3	10.5	11.4	14.1
Research and development, net	6.6	17.9	18.5	6.5	10.3
Marketing/Sales	7.2	6.2	6.4	6.4	11.7
General/Admin.	4.2	3.7	3.8	4.1	5.3
Restructuring	-0.1	0.7	0.1	1.1	-
Restructuring, severance and impairment	-	-	-	-	0.0
Total Operating Expense	74.3	49.0	70.8	40.7	165.5
Other (expense) income, net	-0.7	0.0	0.2	-0.5	-0.6
Interest Income	0.1	0.1	0.1	0.0	0.4
Interest Expense	-0.2	0.0	-0.1	0.0	-0.2
Net Income Before Taxes	16.5	-12.2	-2.7	-1.4	53.5
Provision for Income Taxes	-14.5	0.0	0.3	0.1	1.4
Net Income After Taxes	31.0	-12.2	-3.0	-1.5	52.1
Net Income Before Extra. Items	31.0	-12.2	-3.0	-1.5	52.1
Net Income	31.0	-12.2	-3.0	-1.5	52.1
Income Available to Com Excl ExtraOrd	31.0	-12.2	-3.0	-1.5	52.1
Income Available to Com Incl ExtraOrd	31.0	-12.2	-3.0	-1.5	52.1
Basic Weighted Average Shares	35.4	35.3	35.0	34.8	34.6
Basic EPS Excluding ExtraOrdinary Items	0.88	-0.35	-0.08	-0.04	1.50
Basic EPS Including ExtraOrdinary Item	0.88	-0.35	-0.08	-0.04	1.50
Dilution Adjustment	-	0.0	0.0	0.0	-
Diluted Net Income	31.0	-12.2	-3.0	-1.5	52.1
Diluted Weighted Average Shares	36.4	35.3	35.0	34.8	35.7
Diluted EPS Excluding ExtraOrd Items	0.85	-0.35	-0.08	-0.04	1.46
Diluted EPS Including ExtraOrd Items	0.85	-0.35	-0.08	-0.04	1.46
DPS-Common Stock	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	16.4	-11.6	-2.6	-0.3	53.5
Inc Tax Ex Impact of Sp Items	-14.6	0.2	0.3	0.5	1.4
Normalized Income After Taxes	31.0	-11.8	-2.9	-0.8	52.1
Normalized Inc. Avail to Com.	31.0	-11.8	-2.9	-0.8	52.1
Basic Normalized EPS	0.87	-0.33	-0.08	-0.02	1.50
Diluted Normalized EPS	0.85	-0.33	-0.08	-0.02	1.46
Research & Development Exp	6.6	17.9	18.5	6.5	10.3
Interest Expense	0.2	0.0	0.1	0.0	0.2
Depreciation	2.2	2.1	2.1	2.2	2.6
Gross profit	-	16.3	25.8	17.2	-
Loss from operations	-	12.3	2.9	0.9	-

Annual Balance Sheet

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009	Updated Normal 31-Dec-2007
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson- Sullivan & Co.	Peterson- Sullivan & Co.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified	Unqualified
Cash/Equivalents	50.4	57.4	105.0	72.4	120.5
Restricted Cash	3.8	3.9	5.2	2.7	10.0
ST Investments	-	0.0	3.0	5.4	48.6
Accounts Rcvbl.	34.9	79.9	26.4	95.8	23.7
Unbilled Receivables	7.3	1.8	5.8	-	-
Advance Billings	24.5	22.4	3.0	-	-
Other Receivables	5.8	2.3	3.2	-	-
Doubtful Acct.	-0.1	-0.1	-0.2	-0.1	-0.1
Components & Subassemblies	29.4	11.5	10.7	16.8	20.8
Work in Progress	20.0	5.7	14.4	6.3	15.8
Finished Goods	48.5	32.1	3.9	57.3	19.0
Prepaid Engineering Expenses	-	-	-	-	0.0
Prepaid	12.9	5.9	5.5	30.0	4.1
Total Current Assets	237.4	222.7	185.9	286.5	262.5
Land	0.1	0.1	0.1	0.1	0.1
Building	11.5	11.1	10.8	11.0	10.0
Furn./Fix./Equip	12.3	10.4	15.6	13.3	12.2
Comp./Electric	69.8	68.8	90.0	84.3	76.6
Leasehold Imprv.	0.4	0.4	0.4	3.0	3.0
Depreciation	-77.6	-72.8	-97.0	-93.2	-84.9
Spare Inventory	-	-	-	1.9	3.0
Goodwill	-	-	-	-	65.4
Service Inventory, Gross	14.7	27.7	29.8	-	-
Accumulated Amortization	-13.1	-25.8	-28.1	-	-
Dfrd. Tax Asset	13.4	3.1	2.7	1.2	0.5
Service inventory, net	-	-	-	-	1.2
Other Assets	14.3	15.0	13.6	5.8	6.3
Total Assets	283.1	260.6	223.7	313.9	355.9
Accounts Payable	38.3	20.4	18.8	16.7	14.1
Payroll/Rel. Exp	11.3	20.7	16.2	23.7	12.0
Convertible notes, net of discount	-	-	0.0	25.7	-
Advance research and development	-	-	0.0	13.9	29.7
Other accrued liabilities	5.4	6.4	9.7	24.7	7.5
Convertible Notes Payable	-	-	-	-	0.0
Deferred Revenue	44.6	49.9	42.4	67.7	48.3
Total Current Liabilities	99.6	97.3	87.2	172.3	111.6
Notes Payable	-	-	-	-	80.0
Total Long Term Debt	-	-	-	-	80.0
Deferred Revenue	14.2	15.0	9.6	18.2	11.7
Other Liabilities	2.5	2.5	2.7	3.2	4.3
Total Liabilities	116.3	114.8	99.5	193.7	207.7
Preferred Stock	0.0	0.0	0.0	0.0	-
Common Stock	564.1	559.1	551.2	543.4	513.2
Accumulated Unrealized Gain	-	0.0	0.0	0.0	-
Accumulated Unrealized Gain on Cash Flow	2.1	1.3	2.9	5.3	-
Accumulated Currency Translation	4.3	3.6	3.2	4.1	-
Acc. Other Comprehensive Income	-	-	-	-	13.6
Accum. Deficit	-403.8	-418.1	-433.2	-432.6	-378.6
Total Equity	166.8	145.8	124.2	120.2	148.2
Total Liabilities & Shareholders' Equity	283.1	260.6	223.7	313.9	355.9
S/O-Common Stock	36.8	36.1	35.2	33.5	32.6
Total Common Shares Outstanding	36.8	36.1	35.2	33.5	32.6
T/S-Common Stock	0.0	0.0	0.0	0.0	0.0
S/O-Series A Preferred Stock	0.0	0.0	0.0	0.0	0.0
Total Preferred Shares Outstanding	0.0	0.0	0.0	0.0	0.0
T/S-Series A Preferred Stock	0.0	0.0	0.0	0.0	0.0
Accumulated Intangible Amort, Suppl.	13.1	25.8	28.1	-	-
Deferred Revenue - Current	44.6	49.9	42.4	67.7	48.3
Deferred Revenue - Long Term	14.2	15.0	9.6	18.2	11.7
Full-Time Employees	860	885	872	829	800
Number of Common Shareholders	355	390	455	546	597
Operating Lease Maturing Within 1 Year	4.4	4.4	3.9	2.6	2.8
Operating Lease Maturing Within 2 Years	4.2	4.1	3.5	2.3	1.1
Operating Lease Maturing Within 3 Years	3.8	4.1	3.2	2.3	0.5
Operating Lease Maturing Within 4 Years	3.7	3.7	3.2	2.1	0.4
Operating Lease Maturing Within 5 Years	3.7	3.6	3.3	2.1	0.2
Operating Leases Remaining Maturities	6.7	10.4	12.9	7.9	1.2
Total Operating Leases	26.5	30.3	30.0	19.3	6.3
Liability - German Subsidary's Plan	-2.3	-2.3	-2.4	-	-
Net Assets Recognized on Balance Sheet	-2.3	-2.3	-2.4	-	-

Interim Balance Sheet

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011	31-Dec-2010
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011	Updated Normal 31-Dec-2010
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Cash/Equivalents	50.4	88.3	131.8	122.0	57.4
Restricted Cash	3.8	3.8	3.8	3.9	3.9
Accounts Rcvbl.	34.9	14.9	8.8	13.2	79.9
Unbilled Receivables	7.3	1.5	4.6	3.9	1.8
Advance Billings	24.5	5.3	6.8	17.9	22.4
Other Receivables	5.8	4.6	0.2	0.2	2.3
Doubtful Accounts	-0.1	-0.1	-0.1	-0.1	-0.1
Components & Subassemblies	29.4	33.8	20.0	8.3	11.5
Work in Progress	20.0	26.4	17.2	5.2	5.7
Finished Goods	48.5	34.5	10.8	39.2	32.1
Prepaid expenses and other current asset	12.9	7.5	6.4	6.2	5.9
Short term investments available for sa	-	-	-	-	0.0
Total Current Assets	237.4	220.5	210.3	219.8	222.7
Prop./Equip., Net	16.5	16.9	16.9	16.8	18.0
Spares Inventory, Net	1.6	1.6	1.7	1.8	1.9
Deferred Tax	13.4	3.0	3.0	3.1	3.1
Other	14.3	13.6	12.9	13.0	15.0
Total Assets	283.1	255.5	244.9	254.5	260.6
Accounts Payable	38.3	50.6	22.9	14.1	20.4
Accrued Payroll/Rel. Expense	11.3	10.5	9.0	11.4	20.7
Other accrued liabilities	5.4	4.3	7.3	6.4	6.4
Deferred Revenue	44.6	44.5	49.0	62.2	49.9
Total Current Liabilities	99.6	109.9	88.2	94.2	97.3
Deferred Revenue	14.2	9.2	11.9	12.9	15.0
Other Liabilities	2.5	2.7	3.2	2.7	2.5
Total Liabilities	116.3	121.7	103.3	109.8	114.8
Common Stock	564.1	562.6	561.9	560.7	559.1
Other Comprehensive Income	6.5	6.0	2.2	3.6	4.9
Accumulated Deficit	-403.8	-434.8	-422.6	-419.6	-418.1
Preferred Stock	0.0	0.0	0.0	0.0	0.0
Total Equity	166.8	133.8	141.5	144.7	145.8
Total Liabilities & Shareholders' Equity	283.1	255.5	244.9	254.5	260.6
S/O-Common Stock	36.8	36.2	36.3	36.2	36.1
Total Common Shares Outstanding	36.8	36.2	36.3	36.2	36.1
T/S-Common Stock	0.0	0.0	0.0	0.0	0.0
S/O-Series A Preferred Stock	0.0	0.0	0.0	0.0	0.0
Total Preferred Shares Outstanding	0.0	0.0	0.0	0.0	0.0
T/S-Series A Preferred Stock	0.0	0.0	0.0	0.0	0.0
Deferred Revenue - Current	44.6	44.5	49.0	62.2	49.9
Deferred Revenue- Long Term	14.2	9.2	11.9	12.9	15.0
Operating Lease Maturing Within 1 Years	4.4	1.1	2.2	3.3	4.4
Operating Lease Maturing Within 2 Years	4.2	-	-	-	4.1
Operating Lease Maturing Within 3 Years	3.8	8.3	8.2	8.2	8.2
Operating Lease Maturing Within 4 Years	3.7	-	-	-	3.7
Operating Lease Maturing Within 5 Years	3.7	7.4	7.4	7.4	7.4
Operating Lease Maturing After 5 Years	6.7	10.4	10.4	10.4	10.4
Total Operating Leases	26.5	27.2	28.1	29.1	38.1

Annual Cash Flows

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson Sullivan LLP	Peterson- Sullivan & Co.	Peterson- Sullivan & Co.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified	Unqualified
Net Income	14.3	15.1	-0.6	-40.7	-10.6
Depreciation	8.6	9.4	8.5	10.2	13.4
Loss on disposal of fixed assets	0.5	0.5	0.0	0.0	-
Stock Based Compensation Expense	3.6	4.9	5.8	3.4	3.2
Write-down Inventory	0.0	0.9	5.4	1.0	0.7
Impairment of goodwill	-	0.0	0.0	54.5	0.0
Amortization of Issuance Costs	0.0	0.0	0.0	0.5	0.5
Loss on repurchase of Notes	0.0	0.0	0.9	0.5	0.0
Amortization of convertible notes debt d	0.0	0.0	0.8	5.0	5.1
Dfrd. Income Tax	-14.4	-0.3	-1.4	-0.7	0.2
Accounts Receivable	34.2	-68.1	56.7	-71.3	19.7
Inventory	-51.0	-25.3	44.1	-31.7	-2.2
Prepaid/Other	-2.3	-2.0	16.1	-19.8	-2.7
Accounts Payable	18.1	1.6	2.0	2.6	-8.5
Payroll/Related Exp.	-9.5	1.5	-37.0	16.1	6.6
Other Non-Current Liabilities	-0.1	-0.2	-0.5	-1.1	-0.7
Deferred Revenue	-6.0	12.8	-34.2	26.1	13.9
Cash from Operating Activities	-3.8	-49.2	66.7	-45.5	38.7
Sale ST Invest.	0.0	3.0	7.9	45.0	27.9
Purch. ST Invest.	0.0	0.0	-5.5	-1.7	-75.6
Restricted Cash	0.1	1.2	-2.5	7.3	15.0
Capital Expeditures	-4.9	-3.7	-7.6	-4.4	-2.8
Cash from Investing Activities	-4.8	0.5	-7.7	46.2	-35.4
Issue Common through ESOP	0.4	0.5	0.5	0.5	0.5
Stock option repurchase	0.0	0.0	-0.7	0.0	0.0
Stock Options Exer.	1.1	0.4	0.3	0.1	1.3
Repayment of convertible notes	0.0	0.0	-27.3	-47.7	0.0
Capital Lease, Net	-	-	0.0	0.0	0.0
Cash from Financing Activities	1.5	0.9	-27.2	-47.2	1.7
Foreign Exchange Effects	0.2	0.1	0.9	-1.7	0.3
Net Change in Cash	-7.0	-47.6	32.6	-48.2	5.2
Net Cash - Beginning Balance	57.4	105.0	72.4	120.5	115.3
Net Cash - Ending Balance	50.4	57.4	105.0	72.4	120.5
Cash Interest Paid	0.1	0.0	0.5	2.2	2.4
Cash Taxes Paid	1.5	1.5	1.3	0.2	1.0

Interim Cash Flows

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011	31-Dec-2010
Period Length	12 Months	9 Months	6 Months	3 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011	Updated Normal 31-Dec-2010
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Net Income	14.3	-16.7	-4.4	-1.5	15.1
Depreciation	8.6	6.4	4.3	2.2	9.4
Loss on disposal of fixed assets	0.5	0.1	0.1	0.1	0.5
Stock Based Compensation Expense	3.6	2.7	2.1	1.1	4.9
Inventory Write-down	0.0	0.0	0.0	0.0	0.9
Deferred Income Taxes	-14.4	0.1	0.1	0.0	-0.3
Loss on repurchase of Notes	0.0	-	-	-	0.0
Amortization of convertible notes debt d	0.0	-	-	-	0.0
Amortization of issuance costs, converti	0.0	-	-	-	0.0
Impairment of goodwill	-	-	-	-	0.0
Accounts Receivables	34.2	80.3	85.6	71.2	-68.1
Inventory	-51.0	-46.8	0.5	-3.5	-25.3
Prepaid/Other	-2.3	-0.3	1.5	1.7	-2.0
Accounts Payable	18.1	30.3	2.5	-6.2	1.6
Accrued payroll and related expenses and	-9.5	-11.6	-13.4	-10.7	1.5
Other Non-Current Liabilities	-0.1	0.1	0.7	0.2	-0.2
Deferred Revenue	-6.0	-11.0	-3.9	10.2	12.8
Cash from Operating Activities	-3.8	33.6	75.5	64.8	-49.2
Purch. of ST Invest	0.0	-	-	-	0.0
Sale ST Invest.	0.0	0.0	0.0	-	3.0
Decrease in restricted cash	0.1	0.1	0.1	-	1.2
Capital Expenditures	-4.9	-3.7	-2.3	-1.0	-3.7
Cash from Investing Activities	-4.8	-3.6	-2.1	-1.0	0.5
Proceeds from exercise of options	-	-	-	0.5	-
Proceeds from issuance of common stock t	0.4	0.3	0.2	0.1	0.5
Proceeds from exercise of options	1.1	0.6	0.6	-	0.4
Repayment of convertible notes	0.0	-	-	-	0.0
Stock option repurchase	0.0	-	-	-	0.0
Cash from Financing Activities	1.5	0.8	0.7	0.6	0.9
Foreign Exchange Effects	0.2	0.0	0.3	0.2	0.1
Net Change in Cash	-7.0	30.9	74.4	64.6	-47.6
Net Cash - Beginning Balance	57.4	57.4	57.4	57.4	105.0
Net Cash - Ending Balance	50.4	88.3	131.8	122.0	57.4
Cash Interest Paid	0.1	0.1	0.0	-	0.0
Cash Taxes Paid	1.5	1.5	1.4	1.4	1.5

Geographic Segments

Financials in: As Reported (mil)

Annual

External Revenue   USD (mil)
	31-Dec-11		31-Dec-10		31-Dec-09		31-Dec-08		31-Dec-07
United States	152.6	64.6 %	212.0	66.4 %	216.6	76.2 %	236.5	83.6 %	115.4	62 %
Other Countries	83.5	35.4 %	107.4	33.6 %	67.5	23.8 %	46.3	16.4 %	70.7	38 %
Segment Total	236.0	100 %	319.4	100 %	284.0	100 %	282.9	100 %	186.2	100 %
Consolidated Total	236.0	100 %	319.4	100 %	284.0	100 %	282.9	100 %	186.2	100 %
Total Revenue   USD (mil)
	31-Dec-11		31-Dec-10		31-Dec-09		31-Dec-08		31-Dec-07
United States	152.6	64.6 %	212.0	66.4 %	216.6	76.2 %	236.5	83.6 %	115.4	62 %
Other Countries	83.5	35.4 %	107.4	33.6 %	67.5	23.8 %	46.3	16.4 %	70.7	38 %
Segment Total	236.0	100 %	319.4	100 %	284.0	100 %	282.9	100 %	186.2	100 %
Consolidated Total	236.0	100 %	319.4	100 %	284.0	100 %	282.9	100 %	186.2	100 %

Long Lived Assets   USD (mil)
	31-Dec-11		31-Dec-10		31-Dec-09		31-Dec-08		31-Dec-07
United States	28.3	87.4 %	30.5	87.5 %	30.9	88.2 %	22.4	85.7 %	35.0	37.7 %
Other Countries	4.1	12.6 %	4.4	12.5 %	4.2	11.8 %	3.7	14.3 %	57.9	62.3 %
Segment Total	32.4	100 %	34.8	100 %	35.1	100 %	26.2	100 %	92.9	100 %
Consolidated Total	32.4	100 %	34.8	100 %	35.1	100 %	26.2	100 %	92.9	100 %

Geographic Segments

Financials in: As Reported (mil)

Interim

External Revenue   USD (mil)
	31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11		31-Dec-10
United States	45.2	49.4 %	29.1	79.4 %	53.4	78.7 %	24.8	62.3 %	137.6	62.7 %
Other Countries	46.4	50.6 %	7.6	20.6 %	14.5	21.3 %	15.0	37.7 %	81.8	37.3 %
Segment Total	91.6	100 %	36.7	100 %	67.9	100 %	39.9	100 %	219.4	100 %
Consolidated Total	91.6	100 %	36.7	100 %	67.9	100 %	39.9	100 %	219.4	100 %
Total Revenue   USD (mil)
	31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11		31-Dec-10
United States	45.2	49.4 %	29.1	79.4 %	53.4	78.7 %	24.8	62.3 %	137.6	62.7 %
Other Countries	46.4	50.6 %	7.6	20.6 %	14.5	21.3 %	15.0	37.7 %	81.8	37.3 %
Segment Total	91.6	100 %	36.7	100 %	67.9	100 %	39.9	100 %	219.4	100 %
Consolidated Total	91.6	100 %	36.7	100 %	67.9	100 %	39.9	100 %	219.4	100 %

Business Segments

Financials in: As Reported (mil)

Annual

External Revenue   USD (mil)
	31-Dec-11		31-Dec-10		31-Dec-09		31-Dec-08
Cray Products	141.0	59.7 %	201.3	63 %	196.0	69 %	219.0	77.4 %
Custom Engineering	32.7	13.8 %	62.0	19.4 %	30.7	10.8 %	8.6	3.1 %
Maintenance and Support	62.4	26.4 %	56.1	17.6 %	57.4	20.2 %	55.3	19.5 %
Segment Total	236.0	100 %	319.4	100 %	284.0	100 %	282.9	100 %
Consolidated Total	236.0	100 %	319.4	100 %	284.0	100 %	282.9	100 %
Total Revenue   USD (mil)
	31-Dec-11		31-Dec-10		31-Dec-09		31-Dec-08
Cray Products	141.0	59.7 %	201.3	63 %	196.0	69 %	219.0	77.4 %
Custom Engineering	32.7	13.8 %	62.0	19.4 %	30.7	10.8 %	8.6	3.1 %
Maintenance and Support	62.4	26.4 %	56.1	17.6 %	57.4	20.2 %	55.3	19.5 %
Segment Total	236.0	100 %	319.4	100 %	284.0	100 %	282.9	100 %
Consolidated Total	236.0	100 %	319.4	100 %	284.0	100 %	282.9	100 %

Cost of Revenue   USD (mil)
	31-Dec-11		31-Dec-10		31-Dec-09		31-Dec-08
Cray Products	91.1	64.3 %	128.8	61.5 %	128.7	72.2 %	133.7	77.8 %
Custom Engineering	19.0	13.4 %	47.9	22.9 %	17.9	10 %	4.6	2.7 %
Maintenance and Support	31.6	22.3 %	32.7	15.6 %	31.6	17.8 %	33.5	19.5 %
Segment Total	141.7	100 %	209.4	100 %	178.2	100 %	171.8	100 %
Consolidated Total	141.7	100 %	209.4	100 %	178.2	100 %	171.8	100 %
Gross Profit   USD (mil)
	31-Dec-11		31-Dec-10		31-Dec-09		31-Dec-08
Cray Products	49.9	52.9 %	72.5	65.9 %	67.4	63.6 %	85.3	76.8 %
Custom Engineering	13.7	14.5 %	14.1	12.8 %	12.8	12.1 %	4.1	3.7 %
Maintenance and Support	30.8	32.7 %	23.4	21.3 %	25.7	24.3 %	21.8	19.6 %
Segment Total	94.4	100 %	110.0	100 %	105.9	100 %	111.1	100 %
Consolidated Total	94.4	100 %	110.0	100 %	105.9	100 %	111.1	100 %

Gross Margin (%)
	31-Dec-11		31-Dec-10		31-Dec-09		31-Dec-08
Cray Products	35.4	-	36.0	-	34.4	-	38.9	-
Custom Engineering	41.8	-	22.7	-	41.7	-	47.1	-
Maintenance and Support	49.4	-	41.7	-	44.9	-	39.4	-
Segment Total	40.0	-	34.4	-	37.3	-	39.3	-
Consolidated Total	40.0	-	34.4	-	37.3	-	39.3	-

Business Segments

Financials in: As Reported (mil)

Interim

External Revenue   USD (mil)
	31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11		31-Dec-10
Cray Products	65.9	72 %	13.0	35.4 %	46.1	67.8 %	16.0	40 %	172.1	78.4 %
Custom Engineering	10.7	11.7 %	7.5	20.5 %	5.9	8.7 %	8.6	21.5 %	31.1	14.2 %
Maintenance and Support	14.9	16.3 %	16.2	44.1 %	16.0	23.5 %	15.4	38.5 %	16.2	7.4 %
Segment Total	91.6	100 %	36.7	100 %	67.9	100 %	39.9	100 %	219.4	100 %
Consolidated Total	91.6	100 %	36.7	100 %	67.9	100 %	39.9	100 %	219.4	100 %
Total Revenue   USD (mil)
	31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11		31-Dec-10
Cray Products	65.9	72 %	13.0	35.4 %	46.1	67.8 %	16.0	40 %	172.1	78.4 %
Custom Engineering	10.7	11.7 %	7.5	20.5 %	5.9	8.7 %	8.6	21.5 %	31.1	14.2 %
Maintenance and Support	14.9	16.3 %	16.2	44.1 %	16.0	23.5 %	15.4	38.5 %	16.2	7.4 %
Segment Total	91.6	100 %	36.7	100 %	67.9	100 %	39.9	100 %	219.4	100 %
Consolidated Total	91.6	100 %	36.7	100 %	67.9	100 %	39.9	100 %	219.4	100 %

Cost of Revenue   USD (mil)
	31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11		31-Dec-10
Cray Products	40.9	72.6 %	8.9	43.5 %	30.5	72.4 %	10.7	47.3 %	107.6	77.9 %
Custom Engineering	7.8	13.8 %	3.7	17.9 %	3.5	8.4 %	4.1	17.9 %	21.3	15.4 %
Maintenance and Support	7.7	13.6 %	7.9	38.6 %	8.1	19.2 %	7.9	34.8 %	9.2	6.7 %
Segment Total	56.4	100 %	20.4	100 %	42.2	100 %	22.7	100 %	138.2	100 %
Consolidated Total	56.4	100 %	20.4	100 %	42.2	100 %	22.7	100 %	138.2	100 %
Gross Profit   USD (mil)
	31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11		31-Dec-10
Cray Products	25.0	71.2 %	4.1	25.4 %	15.5	60.2 %	5.2	30.4 %	64.5	79.4 %
Custom Engineering	2.9	8.3 %	3.9	23.7 %	2.4	9.2 %	4.5	26.1 %	9.8	12.1 %
Maintenance and Support	7.2	20.5 %	8.3	50.9 %	7.9	30.5 %	7.5	43.5 %	7.0	8.6 %
Segment Total	35.1	100 %	16.3	100 %	25.8	100 %	17.2	100 %	81.3	100 %
Consolidated Total	35.1	100 %	16.3	100 %	25.8	100 %	17.2	100 %	81.3	100 %

Gross Margin (%)
	31-Dec-11		30-Sep-11		30-Jun-11		31-Mar-11		31-Dec-10
Cray Products	37.9	-	31.8	-	33.7	-	32.8	-	37.5	-
Custom Engineering	27.3	-	51.4	-	40.3	-	52.5	-	31.6	-
Maintenance and Support	48.4	-	51.2	-	49.3	-	48.7	-	43.0	-
Segment Total	38.4	-	44.4	-	37.9	-	43.1	-	37.0	-
Consolidated Total	38.4	-	44.4	-	37.9	-	43.1	-	37.0	-

Bottom of Form

Standard & Poor’s

United States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative

Publication date: 05-Aug-2011 20:13:14 EST

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· We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.

· We have also removed both the short- and long-term ratings from CreditWatch negative.

· The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics.

· More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

· Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.

· The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

TORONTO (Standard & Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the long-term rating is negative. At the same time, Standard & Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's removed both ratings from CreditWatch, where they were placed on July 14, 2011, with negative implications.

The transfer and convertibility (T&C) assessment of the U.S.--our assessment of the likelihood of official interference in the ability of U.S.-based public- and private-sector issuers to secure foreign exchange for

debt service--remains 'AAA'.

We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.

Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty, consistent with our criteria (see "Sovereign Government Rating Methodology and Assumptions ," June 30, 2011, especially Paragraphs 36-41). Nevertheless, we view the U.S. federal government's other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged.

We have taken the ratings off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment of 2011 has removed any perceived immediate threat of payment default posed by delays to raising the government's debt ceiling. In addition, we believe that the act provides sufficient clarity to allow us to evaluate the likely course of U.S. fiscal policy for the next few years.

The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements,

the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.

Our opinion is that elected officials remain wary of tackling the structural issues required to effectively address the rising U.S. public debt burden in a manner consistent with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and Assumptions," June 30, 2011, especially Paragraphs 36-41). In our view, the difficulty in framing a consensus on fiscal policy weakens the government's ability to manage public finances and diverts attention from the debate over how to achieve more balanced and dynamic economic growth in an era of fiscal stringency and private-sector deleveraging (ibid). A new political consensus might (or might not) emerge after the 2012 elections, but we believe that by then, the government debt burden will likely be higher, the needed medium-term fiscal adjustment potentially greater, and the inflection point on the U.S. population's demographics and other age-related spending drivers closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely Cost Even More Green, Now," June 21, 2011).

Standard & Poor's takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.'s finances on a sustainable footing.

The act calls for as much as $2.4 trillion of reductions in expenditure growth over the 10 years through 2021. These cuts will be implemented in two steps: the $917 billion agreed to initially, followed by an additional $1.5 trillion that the newly formed Congressional Joint Select Committee on Deficit Reduction is supposed to recommend by November 2011. The act contains no measures to raise taxes or otherwise enhance revenues, though the committee could recommend them.

The act further provides that if Congress does not enact the committee's recommendations, cuts of $1.2 trillion will be implemented over the same time period. The reductions would mainly affect outlays for civilian discretionary spending, defense, and Medicare. We understand that this fall-back mechanism is designed to encourage Congress to embrace a more balanced mix of expenditure savings, as the committee might recommend.

We note that in a letter to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated total budgetary savings under the act to be at least $2.1 trillion over the next 10 years relative to its baseline assumptions. In updating our own fiscal projections, with certain modifications outlined below, we have relied on the CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to include the CBO assumptions contained in its Aug. 1 letter to Congress. In general, the CBO's "Alternate Fiscal Scenario" assumes a continuation of recent Congressional action overriding existing law.

We view the act's measures as a step toward fiscal consolidation. However, this is within the framework of a legislative mechanism that leaves open the details of what is finally agreed to until the end of 2011, and Congress and the Administration could modify any agreement in the future. Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow. Under our revised base case fiscal scenario--which we consider to be consistent with a 'AA+' long-term rating and a negative outlook--we now project that net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of sovereign indebtedness is high in relation to those of peer credits and, as noted, would continue to rise under the act's revised policy settings.

Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade.

Our revised upside scenario--which, other things being equal, we view as consistent with the outlook on the 'AA+' long-term rating being revised to stable--retains these same macroeconomic assumptions. In addition, it incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating. In this scenario, we project that the net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.

Our revised downside scenario--which, other things being equal, we view as being consistent with a possible further downgrade to a 'AA' long-term rating--features less-favorable macroeconomic assumptions, as outlined below and also assumes that the second round of spending cuts (at least $1.2 trillion) that the act calls for does not occur. This scenario also assumes somewhat higher nominal interest rates for U.S. Treasuries. We still believe that the role of the U.S. dollar as the key reserve currency confers a government funding advantage, one that could change only slowly over time, and that Fed policy might lean toward continued loose monetary policy at a time of fiscal tightening. Nonetheless, it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021.

Our revised scenarios also take into account the significant negative revisions to historical GDP data that the Bureau of Economic Analysis announced on July 29. From our perspective, the effect of these revisions underscores two related points when evaluating the likely debt trajectory of the U.S. government. First, the revisions show that the recent recession was deeper than previously assumed, so the GDP this year is lower than previously thought in both nominal and real terms. Consequently, the debt burden is slightly higher. Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. We believe the sluggish pace of the current economic recovery could be consistent with the experiences of countries that have had financial crises in which the slow process of debt deleveraging in the private sector leads to a persistent drag on demand. As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward.

When comparing the U.S. to sovereigns with 'AAA' long-term ratings that we view as relevant peers--Canada, France, Germany, and the U.K.--we also observe, based on our base case scenarios for each, that the trajectory of the U.S.'s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%. However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015.

Standard & Poor's transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment reflects our view of the likelihood of the sovereign restricting other public and private issuers' access to foreign exchange needed to meet debt service. Although in our view the credit standing of the U.S. government has deteriorated modestly, we see little indication that official interference of this kind is entering onto the policy agenda of either Congress or the Administration. Consequently, we continue to view this risk as being highly remote.

The outlook on the long-term rating is negative. As our downside alternate fiscal scenario illustrates, a higher public debt trajectory than we currently assume could lead us to lower the long-term rating again. On the other hand, as our upside scenario highlights, if the recommendations of the Congressional Joint Select Committee on Deficit Reduction--independently or coupled with other initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high earners--lead to fiscal consolidation measures beyond the minimum mandated, and we believe they are likely to slow the deterioration of the government's debt dynamics, the long-term rating could stabilize at 'AA+'.

On Monday, we will issue separate releases concerning affected ratings in the funds, government-related entities, financial institutions, insurance, public finance, and structured finance sectors.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.42
UK Pound	1	Rs.81.93
Euro	1	Rs.67.67

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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