Cray receives governemnt orders and raised $12.5 million funding

"As we have stated, the supercomputer business is 'lumpy', and it is not unusual for sales and orders to slip into a subsequent quarter," said Cray Inc. president and CEO Jim Rottsolk. "These latest orders demonstrate the continued leadership of our products in mission-critical environments. In addition, we still expect to receive a new order for a Cray MTA system soon, as well as other product orders that slipped beyond December. With this growing backlog, we are off to a strong start in 2001."

On December 29, 2000, the company completed the third and final payment of its $35.7 million promissory note to Silicon Graphics, Inc., for the March 2000 acquisition of the Cray Research business assets. "This is the final step in our acquisition of the Cray Research operations," Rottsolk added.

The company also announced that it has raised $12.5 million from two institutional investors in the form of promissory notes. The company has agreed to issue shares of common stock to the investors covered by the company's shelf registration statement and to apply the purchase price for the shares against repayment of the principal and interest on the notes. Through December 2000, the company repaid $4.2 million of the notes by delivering an aggregate of 1,671,094 shares of common stock at an average price of $2.51 per share, which reflects an 8% discount from the daily volume weighted average trading price for the company's stock. Unless the company prepays the notes, it will repay the remaining $8.3 million of the notes by issuing additional shares of common stock to the investors, using a 9% discount from the average of the daily volume weighted average trading prices over the period from the first week of January through March 2001.