TECHNOLOGY : Cray Will Acquire Mini-Supercomputer Producer

Marking its first move into lower-priced, lowered-powered models, supercomputer pioneer Cray Research said Thursday that it has tentatively agreed to acquire a Silicon Valley maker of so-called mini-supercomputers.

Terms of the all-cash purchase of Supertek Computer of Santa Clara, Calif., were not disclosed.

The deal could bolster Minneapolis-based Cray’s otherwise lackluster performance in the past 18 months by giving it a product line that has proven to be more popular and affordable than the company’s traditional expensive and powerful top-of-the-line supercomputers.

According to analysts, mini-supercomputers, which perform many of the same tasks once reserved exclusively for supercomputers, have stolen sales once guaranteed to supercomputer makers as buyers look to less expensive alternatives to Cray’s traditional models, which range in cost from $2 million to $20 million.

Analysts have criticized Cray over the years for allowing mini-supercomputer makers, such as Convex Computer Corp. in Richardson, Tex., to grow at Cray’s expense and create an entirely new market.

However, Gary Smaby, an analyst who follows Cray closely, said he doubts whether Cray’s purchase of Supertek will be anything more than a defensive move for the immediate future. Smaby reasons that Cray will initially hope to protect itself with Supertek’s product line, which is compatible with Cray’s older systems, the X-MP models. Later, he said, Cray will fully integrate Supertek’s technology with Cray’s most powerful systems, the Y-MP models.

John Rollwagen, Cray’s chairman and chief executive, said Supertek is an important element in the company’s previously announced supercomputing strategy.

“Supertek was the only firm that met our criteria for acquiring compatible technology for this market segment,” Rollwagen said. “Their product is Cray-compatible, and it is available right now. We believe the mini-supercomputer system will stimulate demand for Cray Research supercomputers and will allow us to meet our customers’ needs for a Cray-compatible product of this kind.”