Emulex Corp. Earnings Cheat Sheet: Loss Made Worse but Better than Forecasts

Emulex Corporation (NYSE:ELX) reported its results for the fourth quarter. Emulex Corporation is the provider of a broad range of network convergence solutions that intelligently connect servers, storage and networks within the data center.

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Emulex Earnings Cheat Sheet for the Fourth Quarter

Results: Loss widened to $15.7 million (18 cents per diluted share) from $2.5 million (loss of 3 cents per share) in the same quarter a year earlier.

Revenue: Rose 19.6% to $123.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ELX reported adjusted net income of 16 cents per share. By that measure, the company beat the mean estimate of 10 cents per share. It beat the average revenue estimate of $119.8 million.

Quoting Management: CEO Jim McCluney commented, “Exceeding the high-end of both our revenue and earnings guidance for the fourth quarter was an exceptional finish to a dynamic year for Emulex. During the year we completed the acquisition of Server Engines and began to monetize our R&D investments with the launch of our market-leading OneConnect UCNAs and LOMs across the leading server OEMs. Year-over-year, revenue growth in our Host Server Products continued to accelerate, coming in at approximately 34% for the quarter, led by 10GbE products, which more than tripled over last year,” McCluney continued.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 9.7% to $112.1 million in the third quarter. The figure rose 5.3% in the second quarter from the year earlier and climbed 20.5% in the first quarter from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the third quarter with net income of 2 cents per share.

Competitors to Watch: Brocade Communications Systems, Inc. (NASDAQ:BRCD), QLogic Corporation (NASDAQ:QLGC), LSI Corporation (NYSE:LSI), Hewlett-Packard Company (NYSE:HPQ), EMC Corporation (NYSE:EMC), Intel Corporation (NASDAQ:INTC), Dell Inc. (NASDAQ:DELL), Oracle Corporation (NASDAQ:ORCL), Cisco Systems, Inc. (NASDAQ:CSCO), and Intl. Business Machines Corp. (NYSE:IBM).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)

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