Xyratex 4Q results plunge on lower revenue
(Associated Press Via Acquire Media NewsEdge) Xyratex Ltd. reported Thursday that its profit plunged in the third quarter as the data storage technology company received less revenue from its customer NetApp.
The U.K.-based company said it earned net income of $2.4 million, or 8 cents per share, in the period that ended Aug. 31 compared with net income of $7.7 million, or 28 cents per share, in the prior-year period. Revenue for the period dropped 21 percent to $217.3 million from $275.7 million.
Its earnings adjusted to exclude one-time items amounted to 21 cents per share in the latest quarter. Analysts had been expecting 5 cents a share, according to FactSet.
Xyratex provides data storage and equipment for companies that collect and transmit huge amounts of information. Xyratex's storage program with NetApp closed in the most recent quarter.
For the fourth quarter of 2013 the company said it expects its adjusted net to range between a loss of 4 cents a share and income of 20 cents a share on revenue of $190 million to $220 million.
Analysts polled by FactSet expected the company to report adjusted earnings per share of 16 cents per on revenue of $218.4 million.
Company shares fell 84 cents, or 7 percent, to $11.16 in afterhours trading. They rose 84 cents, or 7.5 percent to $12 in regular-session trading.
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