Welcome!

IBM Cloud Authors: Elizabeth White, Liz McMillan, Sematext Blog, Pat Romanski, Kevin Jackson

News Feed Item

Xyratex Ltd Announces Results for the Fourth Quarter and Fiscal Year 2013

HAVANT, UK, Jan. 13, 2014 /PRNewswire/ -- Xyratex Ltd (Nasdaq: XRTX), a leading provider of data storage technology, today announced results for the fourth fiscal quarter and fiscal year ended November 30, 2013.

Revenues for the fourth quarter were $185.3 million, a decrease of 30.2% compared to revenues of $265.4 million for the same period in the prior year. Revenues for fiscal year 2013 were $814 million, a decrease of 29.7% compared to revenues of $1,159 million for fiscal year 2012. These year over year declines were principally related to the continued reduction in revenue from NetApp with the current program coming to an end in our current quarter as previously announced.

Gross profit margin in the fourth quarter was 22.2%, compared to 14.5% in the same period in the prior year and 20.9% in the prior quarter. Gross profit margin for fiscal year 2013 was 21% compared to 16.9% in the previous year. The increases from last year reflect a favorable variation in customer and product mix in our Enterprise Data Storage Solutions product segment as well as improved margins for newer products in our Capital Equipment segment.

For the fourth quarter of fiscal 2013, GAAP net loss was $21.4 million, or $0.78 per share, compared to a GAAP net loss of $7.9 million, or $0.29 per share, in the same period in the prior year. Non-GAAP net loss was $0.8 million, or $0.03 per share, compared to a non-GAAP net loss of $6.4 million, or $0.24 per share, in the same quarter a year ago(1).

GAAP net loss for fiscal year 2013 was $21.2 million, or $0.77 per share, compared to GAAP net income of $17.7 million, or $0.63 per diluted share, for fiscal year 2012. Non-GAAP net income for fiscal year 2013 decreased to $4.2 million, or $0.15 per diluted share, compared to $24.6 million, or $0.87 per diluted share, for fiscal year 2012.

Included in both the 2013 fiscal fourth quarter and full year GAAP results, but excluded from the non-GAAP results, is a non-cash valuation allowance against the deferred tax asset of $19.2 million. This valuation allowance relates primarily to UK tax losses which have been recorded as a result of certain tax concessions in the UK and the tax structure of the overall Xyratex Ltd group. This valuation allowance does not indicate in itself that the overall Xyratex Ltd group will not be profitable in future fiscal periods.

Today, 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 February 17, 2014 to shareholders of record as of the close of business on February 4, 2014. This dividend represents a quarterly payout of approximately $2.1 million in aggregate, or $8.4 million on an annualized basis.

Business Outlook and Conference Call
Given the Company's announcement on December 23, 2013 that it has entered into a definitive agreement to be acquired by Seagate Technology plc, the Company is not providing an outlook for its fiscal 2014 first quarter and will not be hosting a conference call to discuss its results.

(1) Non-GAAP net income (loss) and diluted earnings (loss) per share exclude (a) amortization of intangible assets, (b) equity compensation expense, (c) the tax effects related to (a) and (b), (d) the tax expense resulting from recording a valuation allowance against the UK deferred tax asset, (e) the tax expense resulting from a reduction in the deferred tax asset caused by a fall in UK tax rates prior to the recording of a valuation allowance and (f) the recognition of a Malaysia deferred tax asset in the first quarter of fiscal 2012. A reconciliation of non-GAAP net income (loss) and diluted earnings (loss) per share to GAAP net income and GAAP diluted earnings (loss) per share is included in a table immediately following the condensed consolidated statements of cash flows.

The intention in providing these non-GAAP measures is to provide supplemental information regarding the company's operational performance while recognizing that they have material limitations and that they should only be referred to with reference to, and not considered to be a substitute for, or superior to, the corresponding GAAP measure. The financial results calculated in accordance with GAAP and reconciliations of these non-GAAP measures to the comparable GAAP measures should be carefully evaluated. The non-GAAP financial measures used by us may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

The company believes that the provision of these non-GAAP financial measures is useful to investors and investment analysts because it enables comparison to the company's historical operating results, those of competitors and other industry participants and also provides transparency to the measures used by management in operational and financial decision making. In relation to the specific items excluded: (a) intangible assets represent costs incurred by the acquired business prior to acquisition, are not cash costs and will not be replaced when the assets are fully amortized and therefore the exclusion of these costs provides management and investors with better visibility of the costs required to generate revenue over time; (b) equity compensation expense is non-cash in nature and is outside the control of management during the period in which the expense is incurred; (c) the exclusion of the related tax effects of excluding items (a) and (b) is necessary to show the effect on net income (loss) of the change in tax expense that would have been recorded if these items had not been incurred; (d) and (e) the recording of a valuation allowance against the UK deferred tax asset and the impact of the reduction in UK tax rates are non-cash and not comparable across periods or with other companies; and (f) the recognition of the Malaysia deferred tax asset relates to the non-renewal of certain tax incentive arrangements in 2012, is non-recurring and will reverse if the incentive arrangements are renewed

Safe Harbor Statement
This press release contains forward-looking statements. These statements relate to future events or our future financial performance. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Factors that might cause such a difference include our inability to retain major customers and meet the required technical and performance specifications of our products in a timely manner or at all, the cyclical nature of the markets in which we operate, changes in our customers' volume requirements, our inability to compete successfully in the competitive and rapidly changing marketplace in which we operate, deterioration in global economic conditions, diminished growth in the volume of digital information, patent infringement claims and our inability to protect our intellectual property and the impact of natural disasters. These risks and other factors include those listed under "Risk Factors" and elsewhere in our Annual Report on Form 20-F as filed with the Securities and Exchange Commission (File No. 000-50799). In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "projects," "potential," "continue," or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

About Xyratex
Xyratex is a leading provider of data storage technology, including modular solutions for the enterprise data storage industry, and hard disk drive (HDD) capital equipment for the HDD industry. Xyratex enterprise data storage platforms provide a range of advanced, scalable data storage solutions for the Original Equipment Manufacturer and High Performance Computing communities. As the largest capital equipment supplier to the HDD industry, Xyratex enables disk drive manufacturers and their component suppliers to meet today's technology and productivity requirements. Xyratex has over 25 years of experience in research and development relating to disk drives, storage systems and manufacturing process technology.

Founded in 1994 in an MBO from IBM, and with headquarters in the UK, Xyratex has an established global base with R&D and operational facilities in North America, Asia and Europe.

Website: www.xyratex.com

XYRATEX LTD

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS














Three Months Ended,


Year Ended,




November 30,


November 30,


November 30,


November 30,




2013


2012


2013


2012




(US dollars in thousands, except per share amounts)











Revenues

$ 185,254


$ 265,446


$ 814,318


$ 1,158,898

Cost of revenues 

144,139


226,941


643,237


963,062

Gross profit

41,115


38,505


171,081


195,836











Operating expenses: 









 Research and development 

24,296


26,436


98,101


103,667


 Selling, general and administrative 

18,333


17,507


69,466


68,432


 Restructuring costs 

857


4,120


3,672


4,120


 Amortization of intangible assets 

452


617


2,057


3,154



Total operating expenses 

43,938


48,680


173,296


179,373

Operating income (loss)

(2,823)


(10,175)


(2,215)


16,463

Interest income, net  

50


176


257


799

Income (loss) before income taxes 

(2,773)


(9,999)


(1,958)


17,262

Provision (benefit) for income taxes

18,598


(2,056)


19,253


(398)

Net income (loss)

$ (21,371)


$ (7,943)


$ (21,211)


$ 17,660




 . 







Net earnings (loss) per share:









Basic

$ (0.78)


$ (0.29)


$ (0.77)


$ 0.64


Diluted

$ (0.78)


$ (0.29)


$ (0.77)


$ 0.63











Weighted average common shares (in thousands), used in computing net earnings (loss) per share:









Basic

27,560


27,024


27,463


27,513


Diluted

27,560


27,024


27,463


28,199











Cash dividends declared per share

$ 0.08


$ 0.08


$ 2.30


$ 0.29











Comprehensive income (loss):








Net income (loss)

$ (21,371)


$ (7,943)


$ (21,211)


$ 17,660

Unrealized gain (loss) on forward foreign currency contracts

2,746


696


438


1,323

Reclassification of loss (gain) into net income

438


167


822


877

Total comprehensive income (loss)

$ (18,187)


$ (7,080)


$ (19,951)


$ 19,860











XYRATEX LTD

CONDENSED CONSOLIDATED BALANCE SHEETS
















November 30,


November 30,




2013


2012




(US dollars and amounts in thousands)







ASSETS




Current assets:





Cash and cash equivalents

$ 102,992


$ 117,174


Accounts receivable, net

90,835


132,917


Inventories

132,227


171,605


Prepaid expenses

3,316


3,134


Deferred income taxes

762


228


Other current assets

11,612


7,121



Total current assets

341,744


432,179


Property, plant and equipment, net

41,595


40,194


Intangible assets, net

14,274


14,975


Deferred income taxes

6,583


23,929



Total assets

$ 404,196


$ 511,277







LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:





Accounts payable

$ 67,061


$ 82,125


Employee compensation and benefits payable

18,896


17,961


Deferred revenue

4,880


18,521


Income taxes payable

1,649


369


Other accrued liabilities

16,886


17,767



Total current liabilities

109,372


136,743


Long-term debt

-


-



Total liabilities

$ 109,372


$ 136,743







Shareholders' equity





Common shares (in thousands), par value $0.01 per share






70,000 authorized, 27,563 and 27,024 issued and outstanding

$ 275


$ 270


Additional paid-in capital

314,465


354,593


Accumulated other comprehensive income

2,123


863


Accumulated income (deficit)

(22,039)


18,808



Total shareholders' equity

294,824


374,534



Total liabilities and shareholders' equity

$ 404,196


$ 511,277







XYRATEX LTD

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS










Year Ended,




November 30,


November 30,




2013


2012




 (US dollars in thousands) 

Cash flows from operating activities: 




Net income (loss)

$ (21,211)


$ 17,660

Adjustments to reconcile net income (loss) to net cash





provided by operating activities:




Depreciation

15,760


17,936

Amortization of intangible assets

2,057


3,155

Non-cash equity compensation

3,158


6,602

Loss on sale of assets

-


2,297

Deferred income taxes

16,387


(2,541)

Changes in assets and liabilities, net of impact of acquisitions and divestitures:





Accounts receivable 

42,082


67,825


Inventories

39,378


(7,425)


Prepaid expenses and other current assets

(3,701)


1,208


Accounts payable 

(15,064)


(86,571)


Employee compensation and benefits payable

935


(3,825)


Deferred revenue

(13,641)


10,829


Income taxes payable 

1,280


326


Other accrued liabilities 

(882)


(1,743)



Net cash provided by operating activities 

66,538


25,733







Cash flows from investing activities: 





Investments in property, plant and equipment 

(17,161)


(15,212)


Payment for acquisition of intangible assets

(1,355)


(3,500)



Net cash used in investing activities 

(18,516)


(18,712)







Cash flows from financing activities: 





Proceeds from issuance of shares

30


661


Repurchase of shares

-


(13,600)


Dividends to shareholders

(62,234)


(9,538)



Net cash used in financing activities 

(62,204)


(22,477)

Change in cash and cash equivalents 

(14,182)


(15,456)

Cash and cash equivalents at beginning of period

117,174


132,630

Cash and cash equivalents at end of period

$ 102,992


$ 117,174







XYRATEX LTD

SUPPLEMENTAL INFORMATION





















Three Months Ended


Year Ended

Summary Reconciliation Of GAAP Net Income (Loss) To Non-GAAP Net Income (Loss)

November 30,

2013


November 30,

2012


November 30,

2013


November 30,

2012



(US dollars in thousands, except per share amounts)


(US dollars in thousands, except per share amounts)










GAAP net income (loss)

$ (21,371)


$ (7,943)


$ (21,211)


$ 17,660











Amortization of intangible assets

452


617


2,057


3,154


Equity compensation

1,260


1,554


3,158


6,602


Tax effect of above non-GAAP adjustments

(342)


(526)


(1,095)


(2,450)


Valuation allowance against UK deferred tax asset

19,225


-


19,225


-


Effect of changes in tax rates

-


(134)


2,104


1,105


Malaysia deferred tax asset recognized 

-


-


-


(1,489)










Non-GAAP net income (loss)

$ (776)


$ (6,432)


$ 4,238


$ 24,582



















Summary Reconciliation Of Diluted GAAP Earnings (Loss) Per Share To Diluted Non-GAAP Earnings (Loss) Per Share
















Diluted GAAP earnings (loss) per share

$ (0.78)


$ (0.29)


$ (0.77)


$ 0.63











Amortization of intangible assets

0.02


0.02


0.07


0.11


Equity compensation

0.05


0.06


0.11


0.23


Tax effect of above non-GAAP adjustments

(0.01)


(0.02)


(0.04)


(0.09)


Valuation allowance against UK deferred tax asset

0.70


-


0.70


-


Effect of changes in tax rates

-


(0.00)


0.08


0.04


Malaysia deferred tax asset recognized 

-


-


-


(0.05)










Diluted non-GAAP earnings (loss) per share

$ (0.03)


$ (0.24)


$ 0.15


$ 0.87



















Segmental Information

















Revenues:









Enterprise Data Storage Solutions

$ 148,323


$ 200,135


$ 655,184


$ 974,043


HDD Capital Equipment

36,931


65,311


159,134


184,855


Total

$ 185,254


$ 265,446


$ 814,318


$ 1,158,898










Gross profit:









Enterprise Data Storage Solutions

$29,895


$28,487


$122,212


$155,326


HDD Capital Equipment

11,296


10,298


49,093


41,475


Equity compensation

(76)


(280)


(224)


(965)


Total

$41,115


$38,505


$171,081


$195,836



















Summary Of Equity Compensation


















Cost of revenues

$ 76


$280


$224


$965


Research and development

329


522


738


2,300


Selling, general and administrative

855


752


2,196


3,337











Total equity compensation

$ 1,260


$1,554


$3,158


$6,602










SOURCE Xyratex Ltd

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.