Xyratex cuts 3Q revenue outlook and stock sinks
NEW YORK (AP) — Data storage provider Xyratex Ltd. said Tuesday it expects a steeper decline in its fiscal third-quarter revenue, and the company's stock slumped in aftermarket trading.
Xyratex said demand from several large customers of enterprise data storage business decreased. It also said product acceptance and revenue recognition for some of its capital equipment and high-performance computing products has been delayed because technical and performance requirements have not been met.
The company now expects to report $271 million to $276 million in revenue for the quarter ended Aug. 31, down from its previous estimate of $313 million to $373 million.
Analysts expected $344.5 million in revenue, according to FactSet.
U.S. traded shares of Xyratex sank $1.78, or 16.6 percent, to $8.96 in aftermarket trading following the announcement. The stock edged up 4 cents to $10.74 during the day.
The English company's previous forecast suggested its revenue would decrease by 13 to 14 percent from the same quarter in 2011. The new guidance suggests revenue will fall 24 to 25 percent.
Xyratex reported $361.8 million in revenue in the third quarter of fiscal 2011, down 16 percent from the previous year.
Xyratex is scheduled to report its full quarterly results Oct. 2.
Shares of Xyratex have fallen 33 percent in the last six months.