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Last Update: 03-Oct-12 09:10 ET
Xyratex shares fall 10% following miss on earnings and revenues
Xyratex (XRTX $7.86 -0.88) reported third quarter earnings of $0.37 per share, excluding non-recurring items, $0.07 worse than the Capital IQ Consensus of $0.44, while revenues fell 23.8% year/year to $275.7 million versus the $273.33 million consensus. Co issues downside guidance for Q4, sees EPS of ($0.43)-($0.15), excluding non-recurring items, versus the $0.49 consensus and revenues of $235-285 million versus the $306.75 million Capital IQ Consensus Estimate. The company said, "Our Q3 proved to be a very challenging quarter due to a number of factors as we stated in our press release last month. Over the last few weeks, we have been able to resolve most of the technical and performance issues with our latest Capital Equipment and High Performance Computing products that prevented us from recognizing the associated product revenue prior to the end of Q3 and we are working very closely with our customers to resolve the remaining issues. I am confident that we will be able to successfully meet all the required technical requirements for the respective products. With regard to the weaker than expected enterprise storage demand that impacted our quarterly results, I do believe that the industry dynamics are weaker than what was expected a few months ago and as a result we have taken a more cautious outlook going forward."
