Xyratex Ltd. Falls on Q2 Earnings Results

Shares of Xyratex Ltd.

are falling in the after-hours following the release of its Q2 earnings results. Currently, shares are off by 5.36%, at $9.71; they ended the regular session higher by 5.56%, at $10.26. Xyratex Ltd. reported Q2 EPS of $0.06 on revenues of $338.5 million; the Street was looking for ($0.02) per share on revenues of $338.7 million. Revenues decreased 25.8% year over year. "I was pleased with the performance of our NSS business in the second quarter. The Enterprise External Storage market remains strong, our OEM partners are gaining share and we are executing well overall to their needs. In addition, our recently announced ClusterStor(TM) 3000 product launch is receiving very positive customer reaction and enables us, through our OEM partners, to expand our accessible market into the High Performance Computing growth sector,” said Steve Barber, CEO of Xyratex. “In contrast, the disk drive capital equipment sector remains very challenged with the industry delaying incremental capital investment pending the outcome of the regulatory reviews of the proposed industry consolidations announced earlier this year. This is having a significant negative impact on our SI business in the near term," he added. Xyratex Ltd. is a provider of modular enterprise-class data storage subsystems and storage process technology. The company designs, develops and manufactures technology that provides its customers with data storage products to support storage and data communication networks.