Rackable Systems stumbles in pre-market after missing Q2 Street view

Shares of Rackable Systems Inc. (Nasdaq:RACK) are skidding 20% in pre-market trading today after the company reported after Monday’s close that its second-quarter earnings had missed Wall Street expectations. For the quarter ended June 28, net loss was $27.9 million, or $0.95 per share, compared with a net loss of $40.4 million, or $1.42 per share, for the same quarter a year ago. Revenues were $75.9 million, down from $82.2 million a year ago. Despite narrowing its net loss, analysts had been expecting a net loss of $0.01 per share on revenues of $76.2 million.

“Our business outlook for the second half of 2008 is positive and we are reaffirming our 2008 annual guidance,” said Mark J. Barrenechea, president and CEO, in a statement. “Our new XE series product is in the market, our industry focus is yielding results, and our core Internet market is expanding into cloud computing. We see these as favorable trends for the second half of 2008 and into 2009.”

Rackable Systems provides servers and storage products for large-scale data centers. Ahead of today’s opening, shares are at $10.05, down $2.50 from Monday’s close. Shares have ranged from $7.76 to $14.66 during the past year.

For detailed price information and recent news stories about Rackable Systems Inc., click RACK.

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