Wednesday, January 17, 2007

Rackable Systems shares fall 35% after profit warning - MarketWatch

"Rackable Systems Inc. shares plunged more than $11, to $21.40 Wednesday after the computer server and storage-technology developer issued a foruth-quarter earnings warning. After the market closed Tuesday, Rackable said factors such as higher DDR memory pricing and lower-than-expected sales of its RapidScale products affected its fourth-quarter results, and that it now expects to earn 17 cents to 18 cents a share. Excluding one-time items, Rackable forecast a loss of 2 cents a share to a profit of a penny a share. By that measure, the company's results will fall far short of the 27 cents-a-share estimate from analysts surveyed by Thomson First Call."

No comments: