Wednesday, Xyratex Ltd (XRTX), a data storage solutions and storage process technology provider, reported a profit for the third quarter, flat with last year, notwithstanding lower gross margins and a 12% decline in revenues. Earnings for the quarter came in well ahead of analysts' consensus. Xyratex shares surged over 10% following the news on the Nasdaq.
Xyratex reported third quarter net income of $7.81 million or $0.26 per share, flat with last year. Results for the quarter include amortization charges of $1.01 million, equity compensation charges of $1.39 million and restructuring costs of $513 thousand.
On an adjusted basis, net income was $10.73 million or $0.36 per share, compared to $10.76 million or $0.36 per share a year earlier.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.14 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter declined 12.3% to $246.29 million from $280.78 million a year ago, yet topped the analysts' revenue estimate of $239.17 million.
Network Storage Solutions revenue declined to $208.61 million from $213.10 million in the previous year. Revenue from Storage Infrastructure declined to $37.69 million from $67.68 million last year.
Gross profit margin in the third quarter was 16.7%, compared to 17.6% in the same period last year.
Total operating expenses declined to $33.03 million from $40.45 million in the previous year.
Provision for income taxes for the quarter was $0.41 million, compared to $1.41 million a year ago.
For the nine-month period, net loss was $17.96 million or $0.61 per share, compared to an income of $7.84 million or $0.26 per share in the same period of the previous year. Total revenues for the period declined to $624.92 million from $764.29 million last year.
XRTX closed Wednesday's regular trading at $9.51, up 0.31 or 3.37%, on a volume of 796K shares on the Nasdaq. In after hours, the stock further gained 0.89 or 9.36%, trading at $10.40.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.