Beat in Q1 + Maintained Prior FY13 Guidance = 16% drop ?
I read the whole CC transcript. Sounds like business as usual at Cray: huge lumpy deal flow, big cash flow when those deals complete, Big Data driving business to their door, no evident competitive threats, margin guidance maintained...
I think many people are not used to the qtr-to-qtr lumpiness of Cray's revenues and earnings. Throw in some extra push by the HFT algos, and you have this great buying opportunity. But this is not to say that things can't get even more extreme. Anyway, I'm definitely in accumulation mode.
These are never one day event. I am waiting, maybe I'll be proven wrong.
Few things bothered me in the cc mainly the lack of enthusiasm on revenues from Eureka, after so much hope in the last year. We started Q1 w/ forecast of $60m quickly raised to $70m we finish w/ 79m, but yearend guidance didn't get raised by 9m maybe not meaningful enough? and Q2 guidance is lowered from analysts guidance by 7m. These details, led to a correction of 17%, my oh my! Now all technicals are out of the window. Patience is now required anew.