Courtesy of Benzinga.
Xyratex (NASDAQ: XRTX) released its fiscal second-quarter financial results on Monday after the closing bell.
The company reported both earnings per share and revenue that came in ahead of Wall Street consensus expectations. In late trading, the stock was last up 5.50 percent to $10.94.
Management Commentary
Ernie Sampias, CEO of Xyratex, said “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.
He added, “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.”
Q2 Results
Xyratex reported a second-quarter profit of $2.9 million or $0.11 per share compared to $7.0 million or $0.24 per share, in last year’s corresponding period.
On an adjusted basis, earnings were $2.7 million or $0.10 per share. This came in ahead of Wall Street analysts’ consensus estimates calling for a loss of $0.05.
Revenue in the quarter fell from $216.19 million from $322.12 million last year. This also exceeded analysts’ estimates calling for revenue of $203.16 million.
Q3 Guidance
Xyratex guided for Q3 adjusted earnings per share between a loss of $0.04 and a profit of $0.20. Revenue is expected between $195 million and $225 million.
Currently, analysts have consensus Q3 EPS estimates of $0.09 on revenue of $223.09 million.
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