Feeds

Cray secures funds, CFO and shareholder lawsuits

Praying for Black Widow

  • alert
  • submit to reddit

Top three mobile application threats

Supercomputer maker Cray has been on a fantastic voyage this week, receiving another dose of funding from the US government, two class action lawsuits and a new CFO.

Cray nailed down $17m from the Feds over the next two years to continue work on the company's future system code-named Black Widow. The computer is due out in 2006 and will be Cray's pride and joy. The government often subsidizes Cray's work in the hopes of receiving very specialized, very powerful systems for crunching away on military and scientific tasks.

"The development of these systems advances our product roadmap," said Jim Rottsolk, the CEO at Cray. "With continued funding, we expect Black Widow to reach a peak performance of several hundred teraflops in its initial design, and to exceed a petaflops (a thousand trillion calculations per second) in its product lifetime."

That, however, was the good news for Cray.

A pair of shareholder lawsuits have been filed, alleging that Cray hid business problems from investors. Cray's stock dropped 40 per cent last July after it revealed disappointing second quarter revenue and announced a 15 per cent workforce reduction.

"We intend to show the leadership at Cray intentionally misled investors through a well-orchestrated campaign of misinformation," said Steve Berman of law firm Hagens Berman Sobol Shapiro and lead attorney in one lawsuit. "Their actions have hurt thousands of individuals who should have had the benefit of the same information that executives used when they sold their stock."

Lerach Coughlin Stoia Geller Rudman & Robbins also filed suit for investors who held shares of Cray between 31 July, 2003 and 12 May, 2005. This suit, however, focuses more on Cray's decision to delay the filing of its 10-K annual report with the government and what the law firm describes as poor operational controls within the hardware maker.

In a statement, Cray responded to the first lawsuit.

"We believe this lawsuit is without merit, and the Company intends to defend it aggressively," Rottsolk said.

Cray did not immediately return a call seeking comment on the second lawsuit.

Away from the lawsuits, Cray this week also named a new CFO when it tapped Brian Henry for the post. Henry previously served as CFO of Onyx Software and arrives at Cray with quite the turmoil on his hands. Cray's former CFO departed in October, its auditor Deloitte & Touche resigned last month and earlier this month the Nasdaq threatened to delist Cray due to its failure to meet a Sarbanes-Oxley compliance requirement. ®

Related stories

French bail out Bull with $690m
US compute labs in desperate need of Federal swill
Major server vendors in giant, supercomputing cluster cluck
NASA's Columbia benchmarks 43 teraflops
Cray comes to market with XD1
Dell dances past the IT sector with strong Q2
Cray pours Red Drizzle over anxious investors
Cray's Q2 revenue gigaflops
Met Office bags shiny new supercomputer

High performance access to file storage

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.