Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Mark Kelleher - Canaccord Adams.
Mark Kelleher - Canaccord Adams
Mark, that gross margin is a little surprising. Could you maybe size the amount of the order that was at low margin? You said there were two effects on it. Can you maybe size those two effects?
Mark J. Barrenechea
We’re not going to get into the specifics of which customer or which property in terms of the sizable deal, but let’s put it in the context obviously of gross margin. As Jim said, we were disappointed with the economic result but not the business decision and it doesn’t change our outlook for the year and we’re again reaffirming our annual projections. The two contributors were the one deal at lower margins which we believe we can grow this opportunity over time. It would have been the wrong decision to walk away from this Rackable customer. Secondly, in quarter costs associated with component shortages and the ability to find alternative components, adding CM charges, freight rework, increased overhead contributed to the lower gross margin. Our base market business was particularly strong in the quarter. So as we’re disappointed for sure, it doesn’t affect our outlook for the entire year.
Mark Kelleher - Canaccord Adams
On the revenue from RapidScale, could you size that and maybe tell us how you figured that into the full-year guidance? Is that included in there or do you assume that’s out of there?
Mark J. Barrenechea
When we look at the annual project, it’s one of the reasons we provided a range. We had projected modest RapidScale revenue and it doesn’t affect our view at this point on the annual revenue projection.
Mark Kelleher - Canaccord Adams
So you’re assuming it’s in there?
Mark J. Barrenechea
The projection certainly had some RapidScale revenue in it and with RapidScale out we still feel we can make the revenue range.
Operator
Our next question comes from Analyst for Louis Miscioscia - Cowen and Company, LLC.
Analyst for Louis Miscioscia - Cowen and Company, LLC
Mark, last quarter you had spoken about a healthy pipeline for ICE Cube and a difference to $20 million to $50 million in revenues for containers. Has that target range changed at all?
Mark J. Barrenechea
No, the range remains the same. So $20 million to $50 million in revenues related to deployments inside the ICE Cube this year. We have lots of customers evaluating the technology, the pipeline remains impressive, we’ve secured our first win in the US federal market which we believe over time could allow us to ship many containers for this one particular project, so we remain just as enthusiastic and we continue to see $20 million to $50 million in revenues related to the Cube this year.
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