Emulex Corp Earnings Cheat Sheet: Loss Narrows and Beats Estimates

Emulex Corporation’s (NYSE:ELX) first quarter loss narrowed, beating estimates. Emulex 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 First Quarter

Results: Loss narrowed to $7.2 million (loss of 8 cents per diluted share) from $8.6 million (loss of 10 cents per share) in the same quarter a year earlier.

Revenue: Rose 14.8% to $118.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ELX reported adjusted net income of 13 cents per share. By that measure, the company beat the mean estimate of 4 cents per share. It beat the average revenue estimate of $115.6 million.

Quoting Management: CEO Jim McCluney commented, “Exceeding the high-end of revenues and earnings guidance was a terrific start to our new fiscal year. With year-over-year increases on the top line of 15%, and non-GAAP net income of 20%, we met our goal of delivering better than industry revenue growth, with even greater earnings growth,” continued McCluney. “Looking forward into the second quarter, we are diligently focused on managing through any temporary supply issues resulting from the recent Thailand flooding, while once again working to deliver strong year-over-year revenue and earnings performance,” McCluney concluded.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 19.6% to $123.4 million in the fourth quarter of the last fiscal year. The figure rose 9.7% in the third quarter of the last fiscal year from the year earlier and climbed 5.3% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 7 cents versus a mean estimate of net income of one cent per share.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 18 cents per share to 9 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is 28 cents per share, down from 39 cents ninety days ago.

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).

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(Source: Xignite Financials)