Rackable Systems forecast fourth-quarter earnings below analysts' estimates, sending the shares down 47 percent in after-hours electronic trade. The computer maker said higher DDR memory pricing, lower-than-expected sales of its RapidScale products and other factors hurt fourth-quarter gross margin.
The company said it expects to earn 17 cents to 18 cents a share, excluding items, on revenue of $105.5 million to $106.8 million. Including items, it expects a loss of 2 cents to a profit of 1 cent a share for the fourth quarter. According to Reuters Estimates, analysts on average expect the company to earn 27 cents a share, excluding items, on revenue of $106.1 million for the quarter.