EmailXyratex (XRTX $12.76 +1.04) reported second quarter earnings of $0.32 per share, $0.03 better than the Capital IQ consensus of $0.29, while revenues fell 4.8% year/year to $322.1 million versus the $327.03 million consensus. The company issued in-line guidance for the third quarter with EPS of $0.39-0.77 versus the $0.47 consensus with revenues of $313-373 million versus the $350.05 million consensus.
"I was pleased with our second quarter results, with revenues and net income in line with our expectations. We did a very good job of meeting the demand requirements of our customers, and I am encouraged by the progress within our technology roadmap, as evidenced by our recent ClusterStor 6000 High Performance Computing announcement,"
Gross profit margin in the second quarter was 16.5%, compared to 12.9% in the same period last year and 17.9% in the prior quarter. The increase from last year primarily reflects improved gross margins for HDD Capital Equipment products, which had been impacted by significantly reduced revenue and specific inventory provisions in the prior year.
