September 29, 2010 / 9:06 PM / 7 years ago

UPDATE 1-Xyratex Q3 beats Street; shares fall on Q4 outlook

2 Min Read

* Q3 adj EPS $1.20 vs est $1

* Q3 rev $430.2 mln vs est $408 mln

* Sees Q4 EPS $0.60-$0.86/shr; rev $395-$445 mln

* Shares down 5 pct

Sept 29 (Reuters) - Data storage technology provider Xyratex Ltd XRTX.O posted better-than-expected quarterly results, helped by higher revenue from its network storage segment, but forecast lower-end of its fourth-quarter EPS below estimates.

Shares of the company fell 5 percent to $16.41 in trading after the bell.

Xyratex, which manufactures disk-storage equipment used in data centers, said it expects to earn 60-86 cents a share excluding items, in the current quarter.

The company forecast fourth-quarter revenue between $395-$445 million.

Analysts on average were looking for earnings of 86 cents a share on revenue of $409.99 million for the fourth quarter, according to Thomson Reuters I/B/E/S.

Third-quarter revenue rose to $430.2 million from $246.3 million last year as its network storage solutions product sales rose 52 percent. Network Storage accounted for almost 74 percent of the company's quarterly revenue.

During the third quarter, the company earned $37.2 million, or $1.19 per share, compared with $7.8 million, or 26 cents a share, in the year-ago period.

Excluding items, Xyratex earned $1.20 per share during the three-month period.

Analysts were expecting earnings of $1.00 a share on $408 million in revenue.

Shares of the company, which have gained almost 29 percent since the beginning of the year, were down 5 percent at $16.45 in trading after the bell. They closed at $17.35 on Wednesday. (Reporting by Himank Sharma in Bangalore)

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