Xyratex Ltd Declares Special $2.00 Dividend and Accelerated Quarterly Dividend
HAVANT, United Kingdom, Dec. 17, 2012
HAVANT, United Kingdom, Dec. 17, 2012 /PRNewswire/ -- Xyratex Ltd (Nasdaq:
XRTX), a leading provider of data storage technology, today announced that its
board of directors has declared a one-time, special cash dividend of$2.00per
share. The special cash dividend will be distributed onDecember 31, 2012to
shareholders of record as at the close of business onDecember 27, 2012.
Xyratex's board of directors has also declared a quarterly cash dividend of
$0.075 per common share and approved the acceleration of the dividend payable
date to December 31, 2012 to shareholders of record at the close of business
on December 27, 2012. The quarterly dividend would otherwise have been
declared in January 2013 with Xyratex's quarterly earnings results for the
fourth quarter of fiscal 2012.
"The company's solid, debt-free balance sheet and projected cash generation
allow us to pay approximately $58 million of special dividendstogether with
approximately $2 million of accelerated quarterly dividends from cash on hand
while maintaining the flexibility to continue to invest in our business. Our
board believes paying these dividends at this time will provide additional
value to our shareholders," said Steve Barber, CEO of Xyratex.
The payment of any future cash dividends will be at the discretion of
Xyratex's board of directors and will be dependent upon Xyratex's financial
position, results of operations, available cash, cash flow, capital
requirements and other factors deemed relevant by the board of directors.
Safe Harbor Statement
This press release contains forward-looking statements. These statements
relate to future events or our future financial performance. These statements
are only predictions 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 future results,
levels of activity, performance or achievements expressed or implied by these
Factors that might cause such a difference include our inability to retain
major customers and meet the required technical and performance specifications
of our products in a timely manner or at all, the cyclical nature of the
markets in which we operate, changes in our customers' volume requirements,
our inability to compete successfully in the competitive and rapidly changing
marketplace in which we operate, deterioration in global economic conditions,
diminished growth in the volume of digital information, patent infringement
claims and our inability to protect our intellectual property and the impact
of natural disasters. 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," "projects," "potential," "continue," or the negative
of these terms or other comparable terminology. Although we believe that the
expectations reflected in the forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance or
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: Vice President of Investor Relations, Brad Driver, +1-510-687-5260,
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