XYRATEX LTDNOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)(U.S. dollars and amounts in thousands, except per share data, unless otherwise stated)16. Segment Information (Continued)Storage Infrastructure. Provision of high-performance, high density disk drive, process & testtechnology to the major disk drive companies and their component suppliers for the development andproduction of highly reliable disk drives.Segment revenue and profit.The accounting policies used to derive reportable segment results are generally the same as thosedescribed in Note 2, ‘‘Summary of Significant Accounting Policies’’.The following tables reflect the results of the Company’s reportable segments under the Company’smanagement reporting system. These results are not necessarily a depiction that is in conformity withaccounting principles generally accepted in the United States and in particular does not include thenon-cash equity compensation charge. The performance of each segment is generally measured basedon gross profit.Year Ended November 30,2005 2004 2003Revenues:Storage & Network Systems ................. $415,379 $318,692 $221,714Storage Infrastructure ...................... 264,230 140,322 112,055Total Segments ........................... $679,609 $459,014 $333,769Gross profit:Storage & Network Systems ................. $ 64,831 $ 56,282 $ 39,010Storage Infrastructure ...................... 79,463 46,174 34,739Total Segments ........................... 144,294 102,456 73,749Non cash equity compensation ............... — (7,827) (690)Total .................................. $144,294 $ 94,629 $ 73,059Depreciation and amortization:Storage & Network Systems ................. $ 4,874 $ 3,025 $ 3,282Storage Infrastructure ...................... 4,618 2,827 1,209Total Segments ........................... 9,492 5,851 4,491Corporate .............................. 420 654 478Total .................................. $ 9,912 $ 6,505 $ 4,969Total segments revenue represents total revenues as reported by the Company for all periodspresented. Gross profit above represents gross profit as reported by the Company for all periodspresented. Income (loss) from continuing operations before income taxes as reported by the Companyfor all periods presented also includes total operating expenses and net interest income (expense). Thechief operating decision maker does not review asset information by segment and therefore no assetinformation is presented.F-38
XYRATEX LTDNOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)(U.S. dollars and amounts in thousands, except per share data, unless otherwise stated)16. Segment Information (Continued)Geographic InformationUnited UnitedStates Kingdom Malaysia TotalRevenues (based on location at which the sale originated):Year Ended November 30, 2005 .................. $373,621 $104,479 $201,509 $679,609Year Ended November 30, 2004 .................. $254,307 $ 82,828 $121,879 $459,014Year Ended November 30, 2003 .................. $164,964 $ 68,404 $100,401 $333,769Long-lived assets (all non-current assets, exceptdiscontinued operations):November 30, 2005 ........................... $ 6,107 $ 11,151 $ 8,385 $ 25,643November 30, 2004 ........................... $ 3,861 $ 4,397 $ 6,237 $ 14,495November 30, 2003 ........................... $ 2,015 $ 4,151 $ 4,237 $ 10,40317. Related partiesThe Company has a significant number of common shareholders with Havant InternationalLimited (HIL) a company formed in 2000 to acquire certain discontinued operations of a predecessorholding company as part of a demerger of that company. In addition, Ken Wilkie, who retired aschairman of the Company’s board of directors during 2004, is also a member of the board of directorsof HIL. The Company is a tenant of HIL in the United Kingdom (Note 14). The Company alsoprovided certain administrative services to HIL. The Company ceased to provide these services onNovember 30, 2004. Income related to the provision of such services to HIL of $67 and $136 has beenincluded as a reduction of selling, general and administrative expenses for the years endedNovember 30, 2004 and 2003 respectively.At November 30, 2005, included in accounts payable is a payable to HIL of $143. In 2001, HILagreed to guarantee a bank facility and a certain creditor balance to a maximum of approximately$26,000 in return for guarantee charges which the Company believes were on equivalent to commercialterms. The guarantee related to the bank facility was removed in March 2003 and the guarantee relatedto the creditor balance was terminated in February 2004. The charge totaled $228 in the years endedNovember 2003.F-39
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XYRATEX LTDANNUAL REPORT FOR THE YE
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INTRODUCTIONWe are incorporated und
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Year Ended November 30,2005 2004 20
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The computations for the weighted a
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The markets in which we operate are
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technological capabilities. This co
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may cease production of components,
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• potentially adverse tax consequ
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We could incur substantial costs, i
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influence by voting at a meeting of
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Xyratex Ltd to the former sharehold
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In addition to the rapid growth of
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RAID controller technology is proje
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Our Competitive StrengthsDisk drive
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the storage subsystem and disk driv
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Our storage subsystems are internal
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systems are capable of testing a fu
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Research and DevelopmentWe have ove
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• sets forth procedures for the p
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Item 4C: Organization StructureXyra
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ecame the parent company of our bus
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Foreign Exchange Rate FluctuationsT
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we recorded in the year ended Novem
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Fiscal Year Ended November 30, 2005
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Research and Development—otherThe
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Fiscal Year Ended November 30, 2004
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Selling, General and Administrative
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Quarterly Results of OperationsThe
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sales growth. The increase in defer
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choose to make or alliances we have
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compete. Identifiable intangible as
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ITEM 6: DIRECTORS, SENIOR MANAGEMEN
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Ernest Sampias has served as a dire
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Audit CommitteeOur Audit Committee
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Employee Benefit/Share Option Plans
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The maximum amount that any partici
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Restricted StockRestricted stock aw
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