NEW YORK ( TheStreet) --Shares of Xyratex Ltd. (XRTX) fell sharply in the extended session after the U.K.-based data storage technology company gave an outlook with plenty of downside, reflecting disk drive supply issues.
The company forecast non-GAAP earnings of 16 to 43 cents a share for its fiscal second quarter ending in May on revenue ranging from $297 million to $357 million. The current average estimate of analysts polled by
Thomson Reuters is for a profit of 35 cents a share on revenue of $341.7 million.
The stock was last quoted at $15.50, down 13%, on volume of roughly 50,000, according to Nasdaq.com. The share were vulnerable to a pullback if there was any blip in the business, having already risen more than 50% in the past year.
"As we had anticipated in January, our ability to meet our enterprise data storage customers' demand requirements has been slightly impacted by a limited supply of enterprise disk drives," said Steve Barber, the company's CEO, in a press release. "While the situation is improving each day, we are working hard to ensure we secure as many drives as possible to meet the demand of our customers."The company's performance for the first quarter was mixed as well. Xyratex reported non-GAAP earnings of $11.4 million, or 40 cents a share, on revenue of $295.7 million. Wall Street's consensus estimate was for a profit of 26 cents a share on revenue of $316.5 million. Check out TheStreet's quote page for Xyratex for year-to-date share performance, analyst ratings, earnings estimates and much more.