Xyratex Ltd Announces Selected Preliminary Fiscal Third Quarter 2012 Financial
Results and Announces Date of Third Quarter Conference Call and Webcast
HAVANT, England, Sept. 11, 2012
HAVANT,England, Sept. 11, 2012 /PRNewswire/ --Xyratex Ltd (Nasdaq: XRTX), a
leading provider of data storage technology, today announced selected
preliminary financial results for its fiscal third quarter, which ended August
The Company expects revenue for the third quarter of 2012 to be between $271
million and $276 million compared to the previously guided revenue range of
$313 million to $373 million.
The Company expects gross margin to be between 18.0% and 18.5%.
"Our preliminary financial results for the third quarter reflect reduced
demand from a number of our large OEM customers in our Enterprise Data Storage
Solutions segment. In addition, the preliminary results reflect specific
technical and performance requirements that have not been met to date and
therefore have delayed product acceptance and revenue recognition for our
latest Capital Equipment and High Performance Computing products," said Steve
Barber, CEO of Xyratex. "While the deferral in meeting the specific acceptance
testing criteria for our new solutions is disappointing, we are working very
closely with our customers to meet the required acceptance specifications and
I am very encouraged by the fact that the overall customer feedback for these
products is positive."
Barber continued, "In light of the macro-economic environment and concerns
indicated by a number of our customers, we are reviewing our fiscal fourth
quarter planning assumptions and will be aligning our business assumptions
with our revised estimates of demand."
The preliminary fiscal third quarter financial results presented in this press
release are estimates and remain subject to finalization and review.
Fiscal Third Quarter Conference Call Information
The company will report final fiscal third quarter results on Tuesday, October
2, 2012, and will host a conference call to discuss the results at 1:30 p.m.
PT/4:30 p.m. ET on that day.
The conference call can be accessed online via the company's website
www.xyratex.com/investors, or by telephone as follows:
United States (800) 561-2731
Outside the United States (617) 614-3528
A replay will be available via the company's website
www.xyratex.com/investors, or can be accessed by telephone through October 9,
2012 as follows:
United States (888) 286-8010
Outside the United States (617) 801-6888
Safe Harbor Statement
This press release contains forward–looking statements. These statements
relate to future events or our future financial performance, including our
estimated revenue and gross margin for the third quarter. These statements are
only preliminary estimates orpredictions, are subject to change and involve
known and unknown risks, uncertainties and other factors that may cause our
actual results, levels of activity, performance or achievements to differ
materially from any expected results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements. Factors
that might cause such a difference include the inherent uncertainty associated
with financial estimates, the possibility that the financial estimates will
change after further review or due to discovery of additional or revised
information or subsequent events,our inability to compete successfully in the
competitive and rapidly changing marketplace in which we operate, failure to
retain key employees, changes in our customers volume requirements,
cancellation or delay of projects and adverse general economic conditions in
the United States and internationally. These risks and other factors include
those listed under "Risk Factors" and elsewhere in our Annual Report on Form
20-F as filed with the Securities and Exchange Commission (File No.
000-50799). In some cases, you can identify forward-looking statements by
terminology such as "may," "will," "should," "expects," "intends," "plans,"
"anticipates," "believes," "estimates," "predicts," "potential," "continue,"
or the negative of these terms or other comparable terminology. Although we
believe that the estimates and expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements.
Xyratex is a leading provider of data storage technology, including modular
solutions for the enterprise data storage industry and hard disk drive (HDD)
capital equipment for the HDD industry. Xyratex enterprise data storage
platforms provide a range of advanced, scalable data storage solutions for the
Original Equipment Manufacturer and High Performance Computing communities. As
the largest capital equipment supplier to the HDD industry, Xyratex enables
disk drive manufacturers and their component suppliers to meet today's
technology and productivity requirements. Xyratex has over 25 years of
experience in research and development relating to disk drives, storage
systems and manufacturing process technology.
Founded in 1994 in an MBO from IBM, and with headquarters in the UK, Xyratex
has an established global base with R&D and operational facilities in North
America, Asia and Europe.
SOURCE Xyratex Ltd
Contact: Brad Driver, Vice President of Investor Relations, +1-510-687-5260,
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