XYRATEX XRTX Announces Results For First Quarter Fiscal Year 2011.
Xyratex leading provider of enterprise class data storage subsystems and hard disk
drive capital equipment, today announced results for the first fiscal quarter
ended February 28, 2011. Revenues for the first quarter were $360.5 million,
an increase of 13% compared to revenues of $319 million for the same period
last year.
For the first quarter, GAAP net income was $4.7 million, or $0.15 per diluted
share, compared to GAAP net income of $26.3 million, or $0.85 per share, in
the same period last year. Non-GAAP net income was $7.5 million, or $0.24 per
diluted share, compared to non-GAAP net income of $29.4 million, or $0.96 per
share, in the same quarter a year ago (1).
Gross profit margin in the first quarter decreased to 13.7%, compared to 18.1%
in the same period last year, primarily due to significantly lower revenues
and gross margins in the Storage Infrastructure business.
Revenues from sales of our Networked Storage Solutions (NSS) products were
$334.2 million as compared to $271 million in the same quarter a year ago, an
increase of 23.3%. Gross profit margin in the NSS business was 14.2% as
compared to 15.2% a year ago. Revenues from sales of our Storage
Infrastructure (SI) products were $26.3 million as compared to $48 million in
the same quarter a year ago, a decrease of 45.2%. Gross profit margin in the
SI business was 9.7% as compared to 34.7% a year ago.
"Our first quarter results were somewhat mixed between our two businesses.
Demand in our NSS business was within our expectations despite component
supply challenges experienced by our largest customer. In our Storage
Infrastructure business we experienced soft demand. I believe this resulted
from changes in the market for 2.5 inch disk drives and also the recently
announced industry consolidation among two of our customers. These factors
have reduced our expectations of demand and revenues in the current fiscal
year, however, in the medium to long term, I believe the consolidation will be
good for the industry and our business," said Steve Barber, CEO of Xyratex.
"Given the current environment in both industries that we participate in and
the consolidations that are taking place, we are very focused on creating new
opportunities with both existing and new customers and restricting our costs
to reflect the current environment. The dynamics in both industries are still
very good and with good execution and the right technologies, I feel confident
that our business opportunities remain strong. We will continue to work with
our customers to make them more competitive in their respective markets and
remain flexible in meeting their technology and product demands."
Share Repurchase Plan
The Board of Directors has authorized a recommencement of the share repurchase
plan it initially approved during the first quarter of 2008, and to increase
the maximum value of shares that may be repurchased. According to the revised
terms of the plan, the Company may repurchase up to an additional $50 million
of its outstanding shares following April 30, 2011. As of February 28, 2011,
Xyratex had 30.9 million shares outstanding.
Share repurchase transactions authorized under the plan will occur from time
to time in the open market, through block trades or otherwise. Management and
the Board of Directors will exercise discretion with respect to the timing and
amount of any shares repurchased, based on their evaluation of a variety of
factors, including current market conditions. Repurchases may be commenced or
suspended at any time without prior notice. Additionally, Xyratex may initiate
repurchases under a Rule 10b5-1 plan, which would permit shares to be
repurchased when the Company would otherwise be precluded from doing so under
insider-trading laws. The repurchase program will be funded using the
Company's available cash resources, and it is intended that the repurchase
program will be Rule 10b-18 compliant.
Business Outlook
The following statements are based on current expectations. These statements
are forward-looking, and actual results may differ materially.
* Revenue in the second quarter of 2011 is projected to be in the range $320
to $365 million.
* Fully diluted earnings per share is anticipated to be a loss of between
$0.20 and $0.02 on a GAAP basis in the second quarter. On a non-GAAP basis
fully diluted earnings per share is anticipated to be between a loss of
$0.12 and earnings of $0.06. Non-GAAP earnings per share excludes
amortization of intangible assets, equity compensation expense, specified
non-recurring items and related taxation expense.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Posted In: EarningsNewsComputer Storage & PeripheralsIndustrial ConglomeratesIndustrialsInformation Technology
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in