Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Note 14— Segment Information

The Company has the following reportable segments: Supercomputing, Storage and Data Management, Maintenance and Support, and Engineering Services and Other. The Company’s reportable segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer, who is the Chief Operating Decision Maker, in determining how to allocate the Company’s resources and evaluate performance. The segments are determined based on several factors, including the Company’s internal operating structure, the manner in which the Company’s operations are managed, client base, similar economic characteristics and the availability of separate financial information.

Supercomputing

Supercomputing includes a suite of highly advanced, tightly integrated and cluster supercomputer systems which are used by large research and engineering centers in universities, government laboratories, and commercial institutions. Supercomputing also includes the ongoing maintenance of these systems as well as system analysts.

Storage and Data Management

Storage and Data Management offers Cray DataWarp, Sonexion as well as other third-party storage products and their ongoing maintenance as well as system analysts.

Maintenance and Support

Maintenance and Support provides ongoing maintenance of Cray supercomputers, big data storage and analytics systems, as well as system analysts.

Engineering Services and Other

Included within Engineering Services and Other are the Company’s analytics business and Custom Engineering.

The following table presents revenues and gross margins for the Company’s operating segments for the three months ended March 31, 2017 and 2016 (in thousands):

	Three Months Ended March 31,
	2017			2016
Revenue:
Supercomputing	$	30,243		$	84,728
Storage and Data Management	15,545			13,467
Maintenance and Support	29,737			26,803
Engineering Services and Other	13,243			7,354
Elimination of inter-segment revenue	(29,737		)	(26,803		)
Total revenue	$	59,031		$	105,549
Gross Profit:
Supercomputing	$	11,659		$	32,039
Storage and Data Management	6,491			4,846
Maintenance and Support	13,818			11,654
Engineering Services and Other	5,659			3,077
Elimination of inter-segment gross profit	(13,818		)	(11,654		)
Total gross profit	$	23,809		$	39,962

Revenue and cost of revenue is the only discrete financial information the Company prepares for its segments. Other financial results or assets are not separated by segment.

The Company’s geographic operations outside the United States include sales and service offices in Europe and the Middle East, South America, Asia Pacific and Canada. The following data represents the Company’s revenue for the United States and all other countries, which is determined based upon a customer’s geographic location (in thousands):

	United States				Other Countries				Total
	2017		2016		2017		2016		2017		2016
Three months ended March 31,
Product revenue	$	13,315	$	33,878	$	7,813	$	37,532	$	21,128	$	71,410
Service revenue	26,561		24,270		11,342		9,869		37,903		34,139
Total revenue	$	39,876	$	58,148	$	19,155	$	47,401	$	59,031	$	105,549

Sales to the U.S. Government totaled approximately $34.2 million for the three months ended March 31, 2017 compared to approximately $52.7 million for the three months ended March 31, 2016. For the three months ended March 31, 2017, no non-U.S. Government or international customers accounted for more than 10% of total revenue. For the three months endedMarch 31, 2016, two non-U.S. Government customers accounted for 33% of total revenue, while revenue in the United Kingdom and Australia accounted for 36% of total revenue.