Rackable Systems ended the quarter with $170.1 million of cash, cash equivalents and short-term investments compared to $160.5 million as of the end of the year, an increase of $9.6 million. Cash flow from operations for the three months ended March 31, 2007 was $10.4 million compared to cash flow from operations of $3.1 million for the same period a year ago.
Effective immediately, the company has promoted Gautham Sastri, the founder and former CEO of Terrascale, which the company acquired in September 2006, to Chief Operating Officer. Mr. Sastri will be primarily responsible for overseeing the companys engineering, operations and quality organizations. Todd Ford will be assuming the title of Executive Vice President and will be responsible for a variety of strategic initiatives. Mr. Ford will remain with the company until the end of the year. Tom Barton will re-assume the additional role and title of President.
For the second quarter of 2007, the company is projecting revenues between $75 and $85 million.