Ownership Submission
FORM 3
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  HOELZEMAN LARRY WAYNE
 2. Date of Event Requiring Statement (Month/Day/Year)
01/01/2011		 3. Issuer Name and Ticker or Trading Symbol
CRAY INC [CRAY]
(Last)
(First)
(Middle)
901 FIFTH AVENUE, SUITE 1000		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
VP, Worldwide Sales
 5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

SEATTLE, WA 98164		 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)		 2. Amount of Securities Beneficially Owned
(Instr. 4)		 3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)		 4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Common Stock 47,893 (1)
D
 
Common Stock 444
I
By 401(k) plan

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)		 2. Date Exercisable and Expiration Date
(Month/Day/Year)		 3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)		 4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option Grant (right to buy)   (2) 05/12/2020 Common Stock 8,000 $ 5.47 D  
Stock Option Grant (right to buy)   (3) 05/13/2019 Common Stock 20,000 $ 3.74 D  
Stock Option Grant (right to buy)   (4) 05/16/2018 Common Stock 5,000 $ 6.63 D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
HOELZEMAN LARRY WAYNE
901 FIFTH AVENUE, SUITE 1000
SEATTLE, WA 98164		       VP, Worldwide Sales  

Signatures

By Michael C. Piraino, Attorney-in-Fact for Larry W. Hoelzeman 01/07/2011
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Includes restricted stock award granted on May 12, 2010, of which 4,000 shares will vest on May 12, 2012 and remaining 4,000 shares will vest on May 12, 2014; restricted stock award granted on May 13, 2009, of which 10,000 shares will vest on May 15, 2011 and remaining 10,000 shares will vest on May 15, 2013; and restricted stock award granted on May 16, 2008, of which 2,500 shares will vest on May 15, 2012.
(2) 25% vests on May 12, 2011 and 1/48th vests monthly thereafter such that it fully vests on May 12, 2014.
(3) 25% vested on May 13, 2010 and 1/48th vests monthly thereafter such that it fully vests on May 13, 2013.
(4) 25% vested on May 16, 2009 and 1/48th vests monthly thereafter such that it fully vests on May 16, 2012.

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