Survival of Cray's spinoff will depend on creativity and longevity of designer
Article Abstract:
Cray Research Inc will withdraw $100 million in financing it provided for its Cray Computer Corp spinoff if Seymour Cray leaves or if the Cray 3 supercomputer development project is scrapped. The Cray-3 is in its sixth year of development already and reportedly requires at least another year and $120 million more to complete. The project is a risky one: not only is Cray's age, 64, a worry, but the Cray 3's gallium arsenide chip technology is unproven and delicate. When the supercomputer does become available, the potential market consists of about 100 customers, and competition is expected to be fierce. IBM Hitachi, NEC Corp and Fujitsu will all offer machines to compete with the Cray 3, but the biggest competitor may be Cray Research, which has about 60 percent of the supercomputer market. Cray Research will unveil its C-90 machine in 1991.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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Cray Research says it plans to lay off 400
Article Abstract:
Cray Research Inc cites slow demand for its supercomputers and announces the first layoff in the company's 17-year history. Cray will reduce its work force by about 400, which is 7 percent of overall employment and about 18 percent of manufacturing personnel. Cray's president, Marcello Gumucio, says the company expects a difficult year and must move to control costs. For one thing, the government accounts for about half of Cray's business, and supercomputers are likely to be major components of Star War systems. But Gumucio notes that government contract orders are taking longer than anticipated, requiring orders to be bumped back. Pres Gumucio also says that his company will decide by the end of 1989 whether to build a small supercomputer to compete with machines made by other companies, such as Convex Computer Corp.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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Cray says sales of computers to be flat in '90; report is latest in string of bad news for firm; third-period net rose
Article Abstract:
Cray Research Inc expects a no-growth year in 1990, but the company announces improved net income for the 3rd qtr. Cray earned $30.6 million ($1.04 a share), up 35 percent from $22.6 million (73 cents a share) in 1988. Revenue gained 45 percent, rising from $425.4 million to $454.6 million. Cray's stock closed down $1.125 at $34.25 on the New York Stock Exchange on Tue, Oct 24, 1989. According to one industry analyst, Cray needs a low-end supercomputer to compete with offerings from companies such as Convex Computer Corp and IBM.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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- Abstracts: Structured observation of managerial work: a replication and synthesis. The leader-member attribution process
- Abstracts: Wang Laboratories is expected to name Miller, Ex-GE executive, to be president. Digital Equipment's financial chief, who strengthened the company, to resign
- Abstracts: California is seen giving phone firms profit incentive to control basic rates. Bell Atlantic finds privacy-law abuses in probe of unit; Bell of Pennsylvania workers gave out phone records improperly, parent says
- Abstracts: Olivetti will sell some of its assets to pay off debt. Britain urges Telecommunications field be opened to many local, foreign firms
- Abstracts: Computer firms expected to post mixed results for latest quarter. Off-line: among those baffled by technology are lots of stock analysts; often when they say 'buy,' shares have plummeted; IBM is the latest case