Rackable Reports Earnings

Rackable Systems announced financial results for the quarter and year ended December 30, 2006

February 3, 2007

1 Min Read
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MILPITAS, Calif. -- Rackable Systems, Inc., (NASDAQ:RACK - News) a provider of servers and storage products for scale out data center deployments, today announced financial results for the quarter and year ended December 30, 2006.

Q4 Highlights

  • Record quarterly revenue of $106.9 million, up 28.6% from Q4'05

  • Non-GAAP EPS of $0.19

  • Non-GAAP gross margin of 19.8%

2006 Highlights

  • Record annual revenue of $360.4 million, up 67.6% from 2005

  • Record annual non-GAAP EPS of $0.94

  • Non-GAAP gross margin of 22.4%

"For the first time in Rackable System's history, we have broken the $100 million quarterly revenue mark," stated Tom Barton, Chief Executive Officer of Rackable Systems. He continued, "However, as we noted in our press release on January 16th, during the fourth quarter we faced several unexpected challenges that negatively impacted our gross margin and earnings per share. The gross margin pressure we experienced this quarter was primarily due to increasingly competitive conditions and an unanticipated increase in DDR memory pricing. Despite these difficulties, we were able to retain and expand key customer relationships during the quarter. Additionally, while sales of our higher-margin RapidScale(TM) products were impacted by a longer than expected product rollout, we remain optimistic about long-term prospects for this business."

Rackable Systems Inc.

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