UK disk drive manufacturer, Xyratex Ltd has had a successful first year away from the bosom of IBM Corp, although 80% of its revenues still came from its former parent. Xyratex is a former division of IBM UK Ltd and was an independent business within the corporation for two years, before being forced out in a #50m management buyout in December 1994 (CI No 2,566). It reported pre-tax profits of #11.4m on turnover of #278.7m in the year to December 31. It was not revealing how this compared to its last year within IBM. The company is predominantly a contract disk drive manufacturer but also offers warranty services, networking products, test systems, storage subsystems and has a fledgling consultancy business, which also incorporates software development. After the year-end Xyratex sold its flexible circuits business to ADFlex Solutions Inc for $56m debt and cash (CI No 2,825). Under the terms of the deal Xyratex took 15% of the Chandler, Arizona company. Chief executive Ken Wilkie said IBM-derived revenues would continue on or slightly below the 80% mark this year, but he said the eventual goal is for no one customer to contribute more than 25% to revenues. The company claims that further acquisitions are on the way. Following the purchase of Peer Protocols Inc last October, (CI No 2,781) it says it is in talks with two non-UK based companies and has a view to expand into south east Asia.
