Cray Awarded $26 Million Contract From the Department of Defense High Performance Computing Modernization Program

SEATTLE, Nov. 07, 2016 -- Global supercomputer leader Cray Inc. (Nasdaq:CRAY) today announced the Department of Defense (DoD) High Performance Computing Modernization Program (HPCMP) has awarded the Company with a $26 million supercomputer contract for a Cray® XC40™ supercomputer and three Cray Sonexion® storage systems.

The Cray systems will be located at the U.S. Army Engineer Research and Development Center DoD Supercomputing Resource Center (ERDC DSRC) in Vicksburg, Mississippi. As the research organization of the U.S. Army Corps of Engineers, ERDC conducts R&D in support of the soldier, military installations, and civil works projects, as well as for other federal agencies, state and municipal authorities, and with U.S. industry through innovative work agreements. ERDC will use its Cray XC40 supercomputer and Cray Sonexion storage systems in support of its mission to develop innovative solutions for a safer, better world.

“It is imperative that ERDC DSRC continue to accelerate technology development by providing researchers and scientists with highly-advanced supercomputing technologies,” said Bobby Hunter, Director of the ERDC DSRC. “Cray supercomputers have played a significant role in the HPCMP and the ERDC DSRC, for several decades. We are pleased that our partnership with Cray will continue in support of our vision of using advanced computational environments to solve DoD’s most critical mission challenges.”

“ERDC is one of the world’s premier engineering and scientific research organizations, and we are honored to once again provide its research teams with innovative supercomputing and storage technologies through the DoD High Performance Computing Modernization Program,” said Fred Kohout, senior vice president and chief marketing officer at Cray. “Cray has enjoyed a long history with the DoD and the ERDC, and we are excited that our long-term collaboration supporting their important mission will continue.”

Awarded by U.S. Army Engineering and Support Center in Huntsville, Alabama, the contract is valued at approximately $26 million in product revenue. The system is expected to be installed in mid-2017. The new system will include Intel® Xeon® E5 computing cores, as well as Intel® Xeon Phi™ processors, formerly code-named “Knights Landing”, and will be the first-ever production-ready Knights Landing system for the HPCMP.

In operation for more than 20 years, the DoD HPCMP remains focused on its mission to accelerate technology development and transition into superior defense capabilities through the strategic application of high performance computing, networking and computational expertise. The HPCMP provides the people, expertise and technologies that increase the productivity of the DoD’s Research, Development, Test and Evaluation community. Cray has worked closely with the HPCMP since its inception.

For more information on the Cray XC series of supercomputers  and Cray Sonexion storage systems, please visit the Cray website at www.cray.com.

About the DoD High Performance Computing Modernization Program
The HPCMP provides Department of Defense supercomputing capabilities, high-speed network communications and computational science expertise that enable DoD scientists and engineers to conduct a wide-range of focused research, development and test activities. This partnership puts advanced technology in the hands of U.S. forces more quickly, less expensively, and with greater certainty of success. Today, the HPCMP provides a complete advanced computing environment for the DoD that includes unique expertise in software development and system design, powerful high performance computing systems, and a premier wide-area research network. The HPCMP is managed on behalf of the Department of Defense by the U.S. Army Engineer Research and Development Center.

For more information, please visit the DoD HPCMP website at www.hpc.mil.

About Cray Inc.
Global supercomputing leader Cray Inc. (Nasdaq:CRAY) provides innovative systems and solutions enabling scientists and engineers in industry, academia and government to meet existing and future simulation and analytics challenges. Leveraging more than 40 years of experience in developing and servicing the world’s most advanced supercomputers, Cray offers a comprehensive portfolio of supercomputers and big data storage and analytics solutions delivering unrivaled performance, efficiency and scalability. Cray’s Adaptive Supercomputing vision is focused on delivering innovative next-generation products that integrate diverse processing technologies into a unified architecture, allowing customers to meet the market’s continued demand for realized performance. Go to www.cray.com for more information.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, including, but not limited to, statements related to the timing and delivery of the system purchased by DoD HPCMP and Cray’s ability to deliver a system that meets the DoD HPCMP’s requirements. These statements involve current expectations, forecasts of future events and other statements that are not historical facts. Inaccurate assumptions and known and unknown risks and uncertainties can affect the accuracy of forward-looking statements and cause actual results to differ materially from those anticipated by these forward-looking statements. Factors that could affect actual future events or results include, but are not limited to, the risk that the system required by DoD HPCMP is not delivered in a timely fashion or does not perform as expected and such other risks as identified in the Company’s quarterly report on Form 10-Q for the quarter ended September 30, 2016, and from time to time in other reports filed by Cray with the U.S. Securities and Exchange Commission. You should not rely unduly on these forward-looking statements, which apply only as of the date of this release. Cray undertakes no duty to publicly announce or report revisions to these statements as new information becomes available that may change the Company’s expectations.

Cray, the stylized CRAY mark and SONEXION are registered trademarks of Cray Inc. in the United States and other countries, and XC40 is a trademark of Cray Inc. Other product and service names mentioned herein are the trademarks of their respective owners. 

Cray Media:
Nick Davis
206/701-2123
[email protected] 

Cray Investors:
Paul Hiemstra
206/701-2044
[email protected]