Xyratex Q3 Profit Declines; Provides Q4 Outlook

(RTTNews) - Xyratex Ltd. (XRTX) Monday reported third-quarter net income of $2.4 million, or $0.08 per share, compared to $7.7 million, or $0.28 per share in the comparable quarter last year.

Adjusted earnings for the quarter were $5.9 million, or $0.21 per share, down from $10.3 million, or $0.37 per share in the prior year period. Analysts polled by Thomson Reuters expected the company to earn $0.05 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues dropped to $217.28 million from $275.67 million last year, while three analysts expected revenues of $209.31 million.

Looking ahead to the fourth quarter, the company anticipates earnings ranging between a loss of $0.09 per share and profit of $0.15 per share, adjusted earnings to range between a loss of $0.04 per share and earnings of $0.20 per share. Revenues are forecast in a range of $190 million to $220 million.

Analysts currently expect the company to report fourth quarter earnings of $0.16 per share on revenues of $218.38 million.

Further, the company also announced that its Board of Directors has approved a quarterly cash dividend of $0.075 per share, unchanged from the prior quarter. The dividend will be payable on November 1, 2013 to shareholders of record as of the close of business on October 17, 2013.