Data storage device maker Xyratex Ltd (XRTX), Tuesday reported a slip to loss in the fourth quarter on higher operating expenses, including losses related to goodwill impairments, even as revenues grew.
Fourth quarter GAAP net loss for Xyratex was $55.7 million or $1.92 per share, compared to net income of $11.7 million or $0.39 per share in the prior-year quarter.
Quarterly results included goodwill impairment losses of $34.26 million and $1.22 million reflecting amortization of intangible assets.
On a non-GAAP basis, net income was $0.4 million or $0.02 per share, compared to $13.1 million or $0.44 per share in the year ago quarter.
On average, five analysts polled by Thomson Reuters expected a loss of $0.24 per share for the quarter. Analysts' estimates typically exclude one-time special items.
Revenues for the quarter jumped 15.1% to $285.43 million from $247.99 million in the year-earlier quarter. The Street expected revenues of $215.79 million for the quarter.
Gross profit margin in the fourth quarter of 12.5%, compared to 18.5% in the same period last year. Total operating expenses surged to $74.19 million from $38.39 million in the comparable quarter last year.
For full-year 2008, GAAP net loss was $47.91 million or $1.64 per share, compared to earnings of $28.11 million or $0.94 per share a year ago. On a non-GAAP basis, net income was $16.2 million or $0.56 per share, compared to $37.5 million or $1.26 per share in the prior year.
Analysts' expected a loss of $0.01 per share for the year.
Revenue for the Havant, the United Kingdom based- company increased 12.7% to $1.05 billion from $931.63 million in the prior year. The Street expected revenues of $957.00 million for the year.
XRTX closed Tuesday's regular trading at $2.19, down $0.27 or 10.98%, on a volume of 0.16 million shares. In after-hours trading, the stock gained $1.78 or 81.28%, to trade at $3.97.
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