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Rackable President Down & Out

Rackable president Todd Ford, who was running all day-to-day operations, is on his way out
By Virtualization News
Article Rating:
April 30, 2007 07:30 AM EDT
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 10,243
Rackable president Todd Ford, who was running all day-to-day operations, is on his way out. He’s been reduced to executive VP, responsible for some so-called strategic initiatives, and will remain with the company until the end of the year.
 
CEO Tom Barton will pick up the slack, resuming the president’s title and Gautham Sastri, former CEO of Terrascale, which Rackable acquired last September, will become COO, responsible for engineering, operations and quality.
 
These chessboard moves come with the news that Rackable lost $10.2 million, or 36 cents a share, on Q1 revenues that worked out to $74 million, down 15% from $84.4 million year-over-year. It managed a gross margin of 12.5%, compared to 23.1% a year ago.
 
Rackable had pre-announced at the beginning of April saying the competition’s cutthroat pricing, particularly Dell’s, to its top accounts, Yahoo, Amazon and Microsoft, which bring in 60% of its business, was killing it. It now plans to broaden its customer base and focus on higher-margin products. It’s got $170.1 million in the bank.
 
This quarter it’s projecting revenues between $75 million and $85 million.

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Published April 30, 2007 – Reads 10,243
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SYS-CON's Virtualization News Desk trawls the news sources of the world for the latest details of virtualization technologies, products, and market trends, and provides breaking news updates from the Virtualization Conference & Expo.

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Virtualization News 04/29/07 05:05:20 PM EDT

Rackable president Todd Ford, who was running all day-to-day operations, is on his way out. He's been reduced to executive VP, responsible for some so-called strategic initiatives, and will remain with the company until the end of the year.