Global company sees its revenue shrink

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HAVANT-based global computer storage company Xyratex has seen its profit margin shrink in the first three months of the year.

For the first quarter, the company earned $4.7m, compared with $26.3m, last year.

However, revenues for the first quarter were $360.5m, an increase of 13 percent compared to the same period last year.

The reason for the lower than expected profit margin was given as higher operating costs and moderate revenue growth.

Xyratex chief executive Steve Barber said weak demand and the merging of two of its customers had had an impact on the firm.

He said: ‘These factors have reduced our expectations of demand and revenues in the current fiscal year.’

He warned the firm could see losses next quarter.