Xyratex 20-F 2007 FY Annual report (foreign)

Exhibit 15.1

XYRATEX LTD

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

	Balance at beginning of period		Charged to costs and expenses	Acquisition	Charged to other accounts		Deductions		Balance at end of period
	(US dollars in thousands)
Year ended November 30, 2007:
Deferred tax valuation allowance	$	17,271	—	—	(12,924	)	—		$	4,347
Warranty provision	$	3,156	3,099	—	—		(2,712	)	$	3,543
Allowance for doubtful accounts	$	411	159	—	—		(136	)	$	434
Year ended November 30, 2006:
Deferred tax valuation allowance	$	16,901	—	—	370		—		$	17,271
Warranty provision	$	2,545	3,280	—	—		(2,669	)	$	3,156
Allowance for doubtful accounts	$	316	650	19	—		(574	)	$	411
Year ended November 30, 2005:
Deferred tax valuation allowance	$	4,270	—	12,904	(273	)	—		$	16,901
Warranty provision	$	1,919	2,046	303	—		(1,723	)	$	2,545
Allowance for doubtful accounts	$	198	4	128	—		(14	)	$	316

The information above relates to the continuing operations of the Company.