Xyratex Revises Guidance Above Estimates (XRTX)

3/8/2010-Xyratex XRTX updated its Q1 guidance Monday, saying it expects EPS of $0.77 to $0.87 (up from its previous guidance of $0.24 to $0.52) on revenues of $313.0 million to $318.0 million (prior range $245.0 million to $285.0 million), versus consensus estimates of $0.46 on revenues of $270.6 million.

Steve Barber, CEO of Xyratex, commented, "We have continued to see an improvement in demand in both our businesses and across all of our major customers. The actions we undertook with regard to the supply chain have helped mitigate the component constraints that impacted our fourth quarter revenue within our Networked Storage Solutions ("NSS") business. Our upside in revenue this quarter is primarily attributable to the NSS business and reflects the shipment of fourth quarter backlog as well as incremental demand during the quarter."

Write to Chip Brian at cbrian@tradethetrend.com

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