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Cray shares soar nearly 22 pct on strong 1Q

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[April 28, 2012]  SAN FRANCISCO (AP) -- Cray Inc.'s stock price climbed its highest level in nearly five years Friday after the supercomputer builder reported a big leap in its first-quarter earnings and delivered a promising outlook for the rest of the year.

The shares surged $1.93, or nearly 22 percent, to $10.83 in afternoon trading. Earlier in the session, the session hit $10.88 -- the highest since May 2007.

Investors were delighted with Cray's first-quarter results released late Thursday.

The company, which is based in Seattle, earned $5 million, or 13 cents per share, during the first three months of the year. Cray lost $1.5 million, or 4 cents per share, at the same time last year.

Revenue more than doubled from last year to $112 million.

Management predicted Cray will be "solidly profitable" for the full year with annual revenue of $430 million to $450 million. The midpoint of that projection represents an 86 percent increase from Cray's revenue last year.

"We are off to a fast start to what I believe will be a banner year for the company," Cray CEO Peter Ungaro said Thursday.

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Friday's rally marked the second major advance in Cray's shares this week. The stock gained 21 percent Wednesday after Cray announced it is selling a hardware development program and other intellectual property to computer chip maker Intel Corp. for $140 million. Besides raising cash for Cray, the sale will help the company reduce costs because 74 employees will transfer to Intel after the deal closes later this year.

[Associated Press]

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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