(Recasts; adds details, share movement)
Aug 4 Data storage solutions provider Rackable
Systems Inc RACK.O failed to meet market expectations as it
reported a big loss on higher operating expenses, sending its
shares down as much as 15 percent in trading after the bell.
The company, however, narrowed its net loss to $27.9
million, or 95 cents a share, from $40.4 million, or $1.42, a
Excluding items, loss was 12 cents a share, while analysts
were expecting the company to break even.
Revenue fell by about 8 percent to $76.0 million, missing
consensus estimates of $76.3 million.
Gross margin on an adjusted basis nearly halved to 9.7
The company's said its gross margin was hurt by a "single
transaction and product shortages," while cost of goods rose
due to component shortages.
Rackable Systems, whose customers include Amazon.com Inc
(AMZN.O), Electronic Arts Inc ERTS.O, Microsoft Corp (MSFT.O)
and Yahoo Inc (YHOO.O), backed its full-year revenue outlook of
$353 million to $374 million and adjusted gross margin of 18
percent to 21 percent.
Analysts expect the company to report revenue of $350.4
million for the year.
Shares of the Fremont, California-based company fell to
$10.65 in trading after the bell. They closed at $12.55 Monday
(Reporting by Anurag Kotoky in Bangalore; Editing by Anil