This company is a low-cost Hedge for companies like NetApp. When NetApp sends out RFP's they use companies like Xyratex, Dothill and the other Taiwanese and some Chinese vendors to go for the lowest bid. Xyratex wins sometimes due to lowest cost (Look at the $900M+ revenue with less than 7% Margin). NetApp will be the dumbest player to buy them and lose the competitive positioning. No buy anywhere. This company has miserably failed to do anything creative of the last five to seven years. Atleast LSI has consistenly produces IP and hence valued at close to $4B. Xyratex with $900M+ in rev is valued at less than $400M.

This company will be a hostile takeover by the hedge funds, put a new layer of business focused management and gut the company to bring it to profitability for it to make sense trading at Nasdaq.