Cray Sells Technology To Intel

Cray (CRAY) announced it is selling its "interconnect hardware assets" for $140 million (cash). In addition, 74 Cray employees to are going to join Intel. I think 74 employees represent ~8% of Cray's workforce. $140 million is approximately $3.95 per CRAY share. CRAY closed today (02012.04.24) at $7.04. 52-week range: $4.96 - $8.39.

"By broadening our relationship with Intel, we are positioned to further penetrate the HPC market and expand on our industry-leading technologies in support of our Adaptive Supercomputing vision." -- Peter Ungaro, president and CEO of Cray

Cray CEO Ungaro says the Intel deal "is an exciting win for our customers, our company and our shareholders." I hope he's right.

[update::02012.04.25] CRAY opened at $9.09, up 29.1%. 15 minutes into trading and CRAY's volume was already 2-times the trailing-3-month average.

[update::02012.04.26] CRAY closed yesterday at $8.51 after hitting a new 52-week high of $9.19. Trading volume was two million compared to a trailing-3-month average of 0.2 million. The number of shares traded was ~5.6% of the total number of CRAY shares.