Welcome!

News Feed Item

Cray Inc. Reports Second Quarter 2014 Financial Results

Company Highlights Significant Recent Customer Wins and Reaffirms Annual Guidance

SEATTLE, WA -- (Marketwired) -- 07/29/14 -- Global supercomputer leader Cray Inc. (NASDAQ: CRAY) today announced financial results for the second quarter ended June 30, 2014.

All figures in this release are based on U.S. GAAP unless otherwise noted. A reconciliation of GAAP to non-GAAP measures is included in the financial tables in this press release. Given the nature of the business, the Company's results can fluctuate dramatically quarter-to-quarter.

Revenue for the quarter was $85.1 million and compares to $84.5 million in the prior year period. The Company reported a net loss for the quarter of $6.7 million, or $0.18 per diluted share, compared to a net loss of $0.2 million, or $0.00 per diluted share in the second quarter of 2013. Non-GAAP net loss was $8.6 million, or $0.22 per diluted share for the quarter, compared to $7.0 million, or $0.19 per diluted share for the same period last year.

Overall gross profit margin for the second quarter of 2014 was 34% compared to 32% for the second quarter of 2013. Total non-GAAP gross profit margin for the second quarter of 2014 was 35% compared to 33% for the second quarter of 2013.

Operating expenses for the second quarter of 2014 were $42.8 million compared to $36.6 million for the prior year period. Non-GAAP operating expenses for the second quarter of 2014 were $39.9 million, compared to $35.0 million for the prior year period. The increase in 2014 GAAP and non-GAAP operating expenses was driven largely by the Company's investments in big data.

As of June 30, 2014, cash, investments and restricted cash totaled $211.6 million compared to $278.6 million at March 31, 2014. Working capital at the end of the second quarter was $300.5 million, compared to $314.9 million at the end of the first quarter.

"Over the last few months we've been on an incredible run of customer wins in both the U.S. and around the world," said Peter Ungaro, president and CEO of Cray. "These awards, some of them multi-year in nature, reaffirm our belief that we're in a great position to continue to grow, not only in 2014 but also over the coming years. Our products are competitively strong, with each of our development roadmaps being driven by the continuing convergence of supercomputing and big data we're seeing in the market. We believe we're in a great position to capitalize on this exciting market evolution and to continue to build on our market leadership."

Outlook
For 2014, while a wide range of results remains possible, the Company anticipates revenue to be in the range of $600 million for the year and, as previously indicated, to be heavily weighted to the fourth quarter as has been typical in recent years. Revenue is expected to be about $125 million for the third quarter. Non-GAAP gross margin for 2014 is anticipated to be in the mid-30% range. Total non-GAAP operating expenses for the year are anticipated to be about $175 million. Based on this outlook, the Company expects to be profitable on both a GAAP and non-GAAP basis for 2014.

The Company's 2014 effective non-GAAP tax rate is expected to be about 10%.

Actual results for any future period are subject to large fluctuations given the nature of Cray's business.

Recent Highlights

Conference Call Information
Cray will host a conference call today, Tuesday, July 29, 2014 at 1:30 p.m. PDT (4:30 p.m. EDT) to discuss its second quarter financial results. To access the call, please dial into the conference at least 10 minutes prior to the beginning of the call at (866) 362-9806. International callers should dial (765) 889-6838. To listen to the audio webcast, go to the Investors section of the Cray website at http://investors.cray.com.

If you are unable to attend the live conference call, an audio webcast replay will be available in the Investors section of the Cray website for 180 days. A telephonic replay of the call will also be available by dialing (855) 859-2056, international callers dial (404) 537-3406, and entering the access code 78154099. The conference call replay will be available for 72 hours, beginning at 4:30 p.m. PDT on Tuesday, July 29, 2014.

Use of Non-GAAP Financial Measures
This press release contains "non-GAAP financial measures" under the rules of the U.S. Securities and Exchange Commission. A reconciliation of GAAP to non-GAAP results is included in the financial tables included in this press release. Management believes that the non-GAAP financial measures that we have set forth provide additional insight for analysts and investors and facilitate an evaluation of Cray's financial and operational performance that is consistent with the manner in which management evaluates Cray's financial performance. However, these non-GAAP financial measures have limitations as an analytical tool, as they exclude the financial impact of transactions necessary or advisable for the conduct of Cray's business, such as the granting of equity compensation awards, and are not intended to be an alternative to financial measures prepared in accordance with GAAP. Hence, to compensate for these limitations, management does not review these non-GAAP financial metrics in isolation from its GAAP results, nor should investors. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. This non-GAAP information supplements, and is not intended to represent a measure of performance in accordance with, or disclosures required by, generally accepted accounting principles, or GAAP. These measures are adjusted as described in the reconciliation of GAAP to non-GAAP numbers at the end of this release, but these adjustments should not be construed as an inference that all of these adjustments or costs are unusual, infrequent or non-recurring. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. Investors are advised to carefully review and consider this non-GAAP information as well as the GAAP financial results that are disclosed in Cray's SEC filings.

Additionally, we have not quantitatively reconciled the non-GAAP guidance measures disclosed under "Outlook" to their corresponding GAAP measures because we do not provide specific guidance for the various reconciling items such as stock-based compensation, adjustments to the provision for income taxes, amortization of intangibles, costs related to acquisitions, purchase accounting adjustments, and gain on significant asset sales, as certain items that impact these measures have not occurred, are out of our control or cannot be reasonably predicted. Accordingly, reconciliations to the non-GAAP guidance measures are not available without unreasonable effort. Please note that the unavailable reconciling items could significantly impact our financial results.

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 Cray's financial guidance and expected future operating results and its product sales and delivery plans. These statements involve current expectations, forecasts of future events and other statements that are not historical facts. Inaccurate assumptions as well as 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 Cray does not achieve the operational or financial results that it expects, the risk that the systems ordered by customers are not delivered when expected, do not perform as expected once delivered or have technical issues that must be corrected before acceptance, the risk that the acceptance process for delivered systems is not completed, or customer acceptances are not received, when expected or at all, the risk that Cray will not be able to secure orders for Cray systems to be delivered and accepted in 2014 when or at the levels expected, the risk that Cray's big data products, including storage, are not as successful as expected, the risk that Cray is not able to successfully complete its planned product development efforts in a timely fashion or at all, the risk that planned future third-party processors are not available with the performance expected or when expected, the risk that Cray is not able to achieve anticipated gross margin or expense levels, and such other risks as identified in Cray's quarterly report on Form 10-Q for the period ended June 30, 2014, 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 Cray's expectations.

Cray is a federally registered trademark of Cray Inc. in the United States and other countries, and XC30 and Sonexion are trademarks of Cray Inc. Other product and service names mentioned herein are the trademarks of their respective owners.

                         CRAY INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            (Unaudited and in thousands, except per share data)

                                  Three Months Ended     Six Months Ended
                                       June 30,              June 30,
                                 --------------------  --------------------
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------
Revenue:
  Product                        $  61,748  $  62,353  $  91,763  $ 122,221
  Service                           23,399     22,114     48,494     41,793
                                 ---------  ---------  ---------  ---------
    Total revenue                   85,147     84,467    140,257    164,014
                                 ---------  ---------  ---------  ---------
Cost of revenue:
  Cost of product revenue           43,967     47,477     67,939     93,047
  Cost of service revenue           12,176     10,189     25,377     20,017
                                 ---------  ---------  ---------  ---------
    Total cost of revenue           56,143     57,666     93,316    113,064
                                 ---------  ---------  ---------  ---------
      Gross profit                  29,004     26,801     46,941     50,950
                                 ---------  ---------  ---------  ---------
Operating expenses:
  Research and development, net     24,189     19,968     46,810     40,194
  Sales and marketing               13,259     11,550     25,035     22,693
  General and administrative         5,316      5,085     10,729     10,570
                                 ---------  ---------  ---------  ---------
    Total operating expenses        42,764     36,603     82,574     73,457
                                 ---------  ---------  ---------  ---------
      Loss from operations         (13,760)    (9,802)   (35,633)   (22,507)

Other income (expense), net           (337)       145       (983)      (190)
Interest income, net                    84        204        145        580
                                 ---------  ---------  ---------  ---------
      Loss before income taxes     (14,013)    (9,453)   (36,471)   (22,117)
Income tax benefit                   7,265      9,303     16,785     14,357
                                 ---------  ---------  ---------  ---------
      Net loss                   $  (6,748) $    (150) $ (19,686) $  (7,760)
                                 =========  =========  =========  =========

    Basic net loss per common
     share                       $   (0.18) $      --  $   (0.51) $   (0.21)
                                 =========  =========  =========  =========
    Diluted net loss per common
     share                       $   (0.18) $      --  $   (0.51) $   (0.21)
                                 =========  =========  =========  =========
    Basic weighted average
     shares outstanding             38,509     37,658     38,414     37,497
                                 =========  =========  =========  =========
    Diluted weighted average
     shares outstanding             38,509     37,658     38,414     37,497
                                 =========  =========  =========  =========



                         CRAY INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED BALANCE SHEETS
             (Unaudited and in thousands, except share amounts)

                                                  June 30,     December 31,
                                                    2014           2013
                                               -------------  -------------
ASSETS
Current assets:
  Cash and cash equivalents                    $     120,512  $     192,633
  Restricted cash                                     20,015             --
  Short-term investments                              48,194         14,048
  Accounts and other receivables, net                 77,366        182,527
  Inventory                                          191,657         95,129
  Prepaid expenses and other current assets           35,380         20,999
                                               -------------  -------------
    Total current assets                             493,124        505,336

Long-term restricted cash                             15,100         13,768
Long-term investments                                  7,813             --
Property and equipment, net                           30,718         30,278
Service inventory, net                                 1,798          1,828
Goodwill                                              14,182         14,182
Intangible assets other than goodwill, net             5,103          6,362
Deferred tax assets                                   27,690         19,206
Other non-current assets                              10,668         12,406
                                               -------------  -------------
    TOTAL ASSETS                               $     606,196  $     603,366
                                               =============  =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Accounts payable                             $      75,514  $      34,225
  Accrued payroll and related expenses                 6,816         22,470
  Other accrued liabilities                            8,259         22,225
  Deferred revenue                                   102,048         91,488
                                               -------------  -------------
    Total current liabilities                        192,637        170,408

Long-term deferred revenue                            47,917         50,477
Other non-current liabilities                          7,014          6,894
                                               -------------  -------------
    TOTAL LIABILITIES                                247,568        227,779

Shareholders' equity:
  Preferred stock -- Authorized and
   undesignated, 5,000,000 shares; no shares
   issued or outstanding                                  --             --
  Common stock and additional paid-in capital,
   par value $.01 per share -- Authorized,
   75,000,000 shares; issued and outstanding
   40,902,285 and 40,469,854 shares,
   respectively                                      592,106        586,243
  Accumulated other comprehensive income              (1,283)           853
  Accumulated deficit                               (232,195)      (211,509)
                                               -------------  -------------
    TOTAL SHAREHOLDERS' EQUITY                       358,628        375,587
                                               -------------  -------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $     606,196  $     603,366
                                               =============  =============



                         CRAY INC. AND SUBSIDIARIES
     Reconciliation of Selected U.S. GAAP Measures to non-GAAP Measures
                    (Unaudited; in millions, except EPS)

                                     Three Months Ended June 30, 2014
                             -----------------------------------------------
                               Net   Operating   Diluted   Gross   Operating
                              Loss      Loss       EPS     Profit  Expenses
                             ------  ---------  --------  ------- ----------
GAAP                         $ (6.7) $   (13.8) $  (0.18) $  29.0 $     42.8

Share-based
 compensation            (1)    2.9        2.9      0.08      0.1        2.8
Purchase accounting
 adjustments             (2)    0.2        0.2      0.01      0.2
Amortization of
 acquired intangibles    (2)    0.6        0.6      0.02      0.5        0.1
Income tax on
 reconciling items       (3)    0.4                 0.01
Other items impacting
 tax provision           (4)   (6.0)               (0.16)
                             ------  ---------  --------  ------- ----------
Total reconciling items      $ (1.9) $     3.7  $  (0.04) $   0.8 $      2.9

Non-GAAP                     $ (8.6) $   (10.1) $  (0.22) $  29.8 $     39.9
                             ======  =========  ========  ======= ==========


                                     Three Months Ended June 30, 2013
                             -----------------------------------------------
                               Net   Operating   Diluted   Gross   Operating
                              Loss      Loss       EPS     Profit  Expenses
                             ------  ---------  --------  ------- ----------
GAAP                         $ (0.2) $    (9.8) $     --  $  26.8 $     36.6

Share-based
 compensation            (1)    1.6        1.6      0.04      0.1        1.5
Purchase accounting
 adjustments             (2)    0.1        0.1        --      0.1

Amortization of
 acquired intangibles    (2)    0.6        0.6      0.02      0.5        0.1
Income tax on
 reconciling items       (3)    0.2                 0.01

Other items impacting
 tax provision           (4)   (9.3)               (0.26)
                             ------  ---------  --------  ------- ----------
Total reconciling items      $ (6.8) $     2.3  $  (0.19) $   0.7 $      1.6

Non-GAAP                     $ (7.0) $    (7.5) $  (0.19) $  27.5 $     35.0
                             ======  =========  ========  ======= ==========

Notes
-----------------------
(1) Adjustments to exclude non-cash expenses related to share-based
 compensation
(2) Adjustments to exclude amortization of acquired intangible and other
 intangible assets and other acquisition-related charges related to the
 acquisition of Appro International, Inc.
(3) Tax impact associated with reconciling items at non-GAAP tax rate
(4) Adjustments to reflect cash tax impact considering benefits principally
 related to Cray's net operating loss carryforwards and changes in Cray's
 valuation allowance held against deferred tax assets



                         CRAY INC. AND SUBSIDIARIES
     Reconciliation of Selected U.S. GAAP Measures to non-GAAP Measures
                (Unaudited; in millions, except percentages)

                                  Three Months Ended June 30, 2014
                         --------------------------------------------------
                             Product           Service           Total
                         ---------------  ----------------  ---------------
                          Gross   Gross     Gross   Gross    Gross   Gross
                          Profit  Margin   Profit   Margin   Profit  Margin
                         ------- -------  -------- -------  ------- -------
GAAP                     $  17.8      29% $   11.2      48% $  29.0      34%

Share-based
 compensation        (1)      --               0.1              0.1
Purchase accounting
 adjustments         (2)     0.2                --              0.2
Amortization of
 acquired
 intangibles         (2)     0.5                --              0.5
                         ------- -------  -------- -------  ------- -------
Total reconciling
 items                   $   0.7       1% $    0.1      --% $   0.8       1%

Non-GAAP                 $  18.5      30% $   11.3      48% $  29.8      35%
                         ======= =======  ======== =======  ======= =======


                                  Three Months Ended June 30, 2013
                         --------------------------------------------------
                             Product           Service           Total
                         ---------------  ----------------  ---------------
                          Gross   Gross     Gross   Gross    Gross   Gross
                          Profit  Margin   Profit   Margin   Profit  Margin
                         ------- -------  -------- -------  ------- -------
GAAP                     $  14.9      24% $   11.9      54% $  26.8      32%

Share-based
 compensation        (1)      --               0.1              0.1
Purchase accounting
 adjustments         (2)     0.1                --              0.1
Amortization of
 acquired
 intangibles         (2)     0.5                --              0.5
                         ------- -------  -------- -------  ------- -------
Total reconciling
 items                   $   0.6       1% $    0.1      --% $   0.7       1%

Non-GAAP                 $  15.5      25% $   12.0      54% $  27.5      33%
                         ======= =======  ======== =======  ======= =======

Notes
-------------------
(1) Adjustments to exclude non-cash expenses related to share-based
 compensation
(2) Adjustments to exclude amortization of acquired intangible and other
 intangible assets and other acquisition-related charges related to the
 acquisition of Appro International, Inc.



                         CRAY INC. AND SUBSIDIARIES
               Reconciliation of GAAP to non-GAAP Net Income
     (Unaudited; in millions except per share amounts and percentages)

                                  Three Months Ended     Six Months Ended
                                       June 30,              June 30,
                                 --------------------  --------------------
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------
GAAP Net Loss                    $    (6.7) $    (0.2) $   (19.7) $    (7.8)

Non-GAAP adjustments
 impacting gross profit:
  Share-based compensation   (1)       0.1        0.1        0.2        0.2
  Purchase accounting
   adjustments               (2)       0.2        0.1        0.3        1.1
  Amortization of acquired
   and other intangibles     (2)       0.5        0.5        1.0        1.0
                                 ---------  ---------  ---------  ---------
Total adjustments impacting
 gross profit                          0.8        0.7        1.5        2.3

Non-GAAP gross margin
 percentage                             35%        33%        35%        32%

Non-GAAP adjustments
 impacting operating
 expenses:
  Share-based compensation   (1)       2.8        1.5        5.2        3.1
  Amortization of acquired
   intangibles               (2)       0.1        0.1        0.2        0.2
                                 ---------  ---------  ---------  ---------
Total adjustments impacting
 operating expenses                    2.9        1.6        5.4        3.3

Non-GAAP adjustments
 impacting tax provision:
  Income tax on reconciling
   items                     (3)       0.4        0.2        0.7        0.5
  Other items impacting tax
   provision                 (4)      (6.0)      (9.3)     (14.2)     (13.7)
                                 ---------  ---------  ---------  ---------
Total adjustments impacting
 tax provision                        (5.6)      (9.1)     (13.5)     (13.2)

Non-GAAP Net Loss                $    (8.6) $    (7.0) $   (26.3) $   (15.4)
                                 =========  =========  =========  =========

Non-GAAP Diluted Net Loss
 per common share                $   (0.22) $   (0.19) $   (0.69) $   (0.41)
                                 =========  =========  =========  =========

Diluted weighted average
 shares                               38.5       37.7       38.4       37.5

Notes
---------------------------
(1) Adjustments to exclude non-cash expenses related to share-based
 compensation
(2) Adjustments to exclude amortization of acquired intangible assets and
 other acquisition-related charges related to the acquisition of Appro
 International, Inc.
(3) Tax impact associated with reconciling items at non-GAAP tax rate
(4) Adjustments to reflect cash tax impact considering benefits principally
 related to Cray's net operating loss carryforwards and changes in Cray's
 valuation allowance held against deferred tax assets

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

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

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.