Xyratex Ltd. (NASDAQ:XRTX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.08%.
Xyratex Ltd. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 68.75% to $0.1 in the quarter versus EPS of $0.32 in the year-earlier quarter.
Revenue: Decreased 32.88% to $216.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Xyratex Ltd. reported adjusted EPS income of $0.1 per share. By that measure, the company beat the mean analyst estimate of $-0.05. It beat the average revenue estimate of $203.16 million.
Quoting Management: “After three months in the CEO position, my perspectives on the important role Xyratex plays in the data storage market and the significant opportunities for the Company in terms of future growth have been confirmed for me. The capability and expertise that Xyratex possesses to deliver storage technology that enables its customers to be successful in their markets is proven, repeatable and verifiable. I have conducted a detailed analysis of the business with the Board, including our most recently appointed Board members, Vadim Perelman and Ken Traub, who represent our largest investor, Baker Street Capital. Our core businesses of Capital Equipment and Storage Solutions are both profitable and cash generative. I am encouraged by the longer term opportunities for growth in these businesses. The gradual revenue decline from our previously largest customer NetApp will cease after 2014 and this revenue is being replaced with new OEM business wins. With our new ClusterStor product line, which addresses the HPC/Big Data marketplace, we have achieved incremental design wins, added a number of new customers in just the last 3 months and are on course to meet our revenue target of $60m in fiscal 2013. I am very encouraged that ClusterStor is approaching the inflection point where, as revenue ramps year over year, the product line can generate a positive contribution to the overall business,” said Ernie Sampias, CEO. “I can also confirm that the Board is unanimously supportive of our long-term growth strategy.”
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