Xyratex: Preliminary Results for Fiscal 1Q10

Xyratex Ltd. announced preliminary results for its fiscal 2010 first quarter, which ended February 28, 2010.

Xyratex expects to report revenues for the first quarter of fiscal 2010 in the range of $313 to $318 million. This compares to the Company’s guidance of revenues between $245 and $285 million.

Xyratex expects GAAP earnings per diluted share for the first quarter of fiscal 2010 to be in the range of $0.77 to $0.87. This compares to guidance of between $0.24 and $0.52.

"We have continued to see an improvement in demand in both our businesses and across all of our major customers. The actions we undertook with regard to the supply chain have helped mitigate the component constraints that impacted our fourth quarter revenue within our Networked Storage Solutions (NSS) business. Our upside in revenue this quarter is primarily attributable to the NSS business and reflects the shipment of fourth quarter backlog as well as incremental demand during the quarter," said Steve Barber, CEO of Xyratex. "We are confident that the fundamentals within the markets we serve will continue to improve into our second quarter."