Sarbanes-Oxley delays Cray's annual report

Cray said on Wednesday that it will delay filing its annual report because of issues stemming from reviews of financial controls required by the Sarbanes-Oxley Act. The supercomputing specialist does not anticipate that its earlier reported financial results will change materially, compared with results announced earlier. The annual report, excluding the Sarbanes-Oxley compliance information, should be released by March 31, Cray said.

"The company expects that it will identify one or more material weaknesses, including inadequate review of third-party contracts and lack of software application controls and documentation, and that it will conclude that its system of internal controls was not effective," Cray said in a statement. It added that company auditors have expressed "serious reservations" that Cray will be able to complete its assessment and that they would be able to issue an opinion on it.