Cray Inc. -- CRAYE
Stock Falls from Class Period High of $13.49 to $1.34
SAN DIEGO, May 25, 2005 - a class action has been in the United States
District Court for the District of Washington on behalf of the
purchasers of Cray Inc. (Nasdaq:CRAYE) ("Cray" or the "Company")
securities between July 31, 2003 and May 12, 2005, inclusive (the
"Class Period"). Cray is engaged in the design, development, marketing
and support of high-performance computer systems, commonly known as
supercomputers.
If you wish to serve as lead plaintiff, you must move the Court no
later than 60 days from May 25, 2005.
The complaint alleges that the Company's manufacturing processes,
internal controls and testing were flawed and ineffective and that
Cray's own auditors and Audit Committee knew of the flawed and
ineffective internal controls. Further, the complaint alleges that
delays in inventory recognition realization and revenue were a
recurring and unpredictable feature of Cray's business model and that
Cray was either losing money or just breaking even on certain customer
orders. Despite these problems, Plaintiff alleges that during the Class
Period, Cray failed to disclose, and in fact misrepresented, material
adverse facts, about the Company's financial health. Notably, the
complaint alleges that the Company failed to disclose that business
metrics having a direct bearing on revenue recognition were becoming
increasingly unfavorable, were unlikely to improve anytime soon and
would ultimately impact the Company's financial operations.
On May 9, 2005, Cray revealed that it had failed to include an
auditor's opinion on management's assessment of internal control over
financial reporting. Moreover, it is alleged that Cray continued to
report revenue results adversely impacted by faulty internal controls
and past quarter practices. Cray's stock price, which was as high as
$13.49 during the Class Period, closed on May 12, 2005 at $1.34
If you wish to discuss this action or have any questions concerning
this notice or your rights or interests, please contact ...... PIETRO66 ..