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back to article Wall Street grossed out by Rackable's dwindling margins

Shares of Rackable Systems began an all too familiar downward march, following a first quarter profit and gross margins warning. Well, profit isn't the best word to use since Rackable revealed that it will likely report a first quarter loss for the period that closed March 31. The loss stands as just one item in a long list of …

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Anonymous Coward

not terribly surprising

Having worked with some of their hardware, it's hard to be surprised by this. They sell systems with known deficiencies (for instance, the recurring vibration issue in the rear corner drive in their 1u half-depth 19" rack mount systems) to companies who are attracted to the small footprint, and then just RMA damaged parts. I've watched at least 100 drives get returned over the last few months (out of a total installation base of ~1000 drives give or take), each one requiring no less than 20m of work with the system to replace because of how cumbersome they are to work with. I can't imagine they have very many repeat customers. I know I for one will burn my office to the ground if we end up deciding to refresh our hardware with their crap again (we affectionately refer to them as "Crappables" around my office!). With any luck, the company will perish before we can give them any more money.

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