Rackable stomached $31.3m loss in 2008
Server maker Rackable Systems has finished up a rough 2008 and is positioning itself to take on a challenging 2009 IT spending environment.
After the markets closed today, Rackable reported its fourth quarter and full year 2008 financial results, and sales for the peddler of energy-efficient, rack-based machines fell by 65.1 per cent to $38.8m. Excluding numbers related to discontinued product lines, Rackable posted an $18.2m loss in the fourth quarter ended January 3, compared to a gain of $4.7m in the year-ago quarter.
Including losses from those discontinued operations, Rackable had a $19.5m loss in Q4 2008 and an $18.9m loss in Q4 2007. For the full year, Rackable's sales fell by 29.4 per cent to $247.4m, and it had a loss of $31.3m on continuing operations, which was at least smaller than the $40m loss it had in 2007.
Mark Barrenechea, Rackable's president and chief executive officer, said that the company was affected by the deflationary economy and the reduction in capital spending that is affecting all economic sectors, and its woes were compounded by price volatility the components that go into its server and storage racks.
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