Analysts did not expect major improvements till 2014 - 2015
A bump next qtr would have been nice, but I don't think it was really expected. Below is from Seeking Alpha and I think sizes potential accurately.
"HDD capital spending is about to pick up modestly in 2014, and grow more in 2015. This is based on the conservatism of the HDD companies, which saw a depressed TAM in recent quarters. They haven't invested in new equipment in a while, and they have multiple new products launching nowadays, like the 5mm HDD that is meant for tablets."
" During July, interim Chief Executive Ernie Samplas said he was encouraged by longer-term growth opportunities --noting the soft revenue from NetApp, formerly Xyratex's largest customer, will end after 2014 and be replaced by business from other original equipment manufacturers.
The data-storage company, has been under pressure from its largest shareholder, Baker Street Capital LLC, to consider strategic alternatives since early this year. In April, Xyratex agreed to name two of the hedge-fund manager's nominees, Vadim Perelman and Ken Traub, to its board. Also in April, Xyratex's former CEO, Steve Barber, stepped down in April, after serving at the helm for roughly 10 years.