Cray Inc. reported earnings results for the fourth quarter and year ended Dec. 31, 2017. For the quarter, the company reported that revenue was $166.6 million, compared to $346.6 million in the fourth quarter of 2016. Net loss was $97.5 million, or $2.42 per diluted share, compared to net income of $51.8 million, or $1.27 per diluted share in the fourth quarter of 2016. Non-GAAP net income was $9.2 million, or $0.22 per diluted share for the fourth quarter of 2017, compared to non-GAAP net income of $56.3 million, or $1.38 per diluted share for the same period in 2016. GAAP Net Loss was significantly impacted by both the enactment of the Tax Cuts and Jobs Act of 2017 and by its decision to record a valuation allowance against all of its U.S. deferred tax assets.

For the year, the company reported total revenue of $392.5 million, which compares with $629.8 million in 2016. Net loss was $133.8 million, or $3.33 per diluted share, compared to net income of $10.6 million, or $0.26 per diluted share in 2016. Non-GAAP net loss, which adjusts for selected unusual and non-cash items, was $40.5 million, or $1.01 per diluted share for 2017, compared to non-GAAP net income of $19.9 million, or $0.49 per diluted share in 2016. GAAP Net Loss was significantly impacted by both the enactment of the Tax Cuts and Jobs Act of 2017 and by its decision to record a valuation allowance against all of its U.S. deferred tax assets.

Revenue is expected to be about $50 million for the first quarter of 2018.

For the year 2018, while a wide range of results remains possible, the company continues to expect revenue to grow in the range of 10-15% over 2017. For 2018, GAAP and non-GAAP gross margins are expected to be in the low- to mid-30% range. GAAP gross profit is expected to be about $2 million lower than non-GAAP gross profit. Based on this outlook, the company's effective GAAP and non-GAAP tax rates for 2018 are both expected to be in the low-single digit range, on a percentage basis.