Emulex Earnings: Reports a Profit

Emulex Corporation (NYSE:ELX) reversed to a profit in the first quarter but still missed analysts’ 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 Corporation Earnings Cheat Sheet

Results: Reported a profit of $657,000 (one cent per diluted share) in the quarter. Emulex Corporation had a net loss of $7.2 million or a loss 8 cents per share in the year-earlier quarter.

Revenue: Rose 0.7% to $119.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Emulex Corporation fell short of the mean analyst estimate of 10 cents per share. It fell short of the average revenue estimate of $123.3 million.

Quoting Management: CEO Jim McCluney commented, “I’m very pleased with our performance for the first quarter as we met our revenue target, and once again exceeded the high end of our earnings guidance. With strong growth in both Fibre Channel and 10Gb Ethernet solutions, Network Connectivity Products now account for more than 80% of our total revenues,” continued McCluney. “With the time-to-market advantage of our 16Gb Fibre Channel adapters, and our investments in sales targeting higher growth markets, we are well positioned for share gains in our core markets,” McCluney concluded.

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 4.5% to $129 million in the fourth quarter of the last fiscal year. The figure rose 12.2% in the third quarter of the last fiscal year from the year earlier and climbed 12.9% in the second quarter of the last fiscal year from the year-ago quarter.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the fourth quarter of the last fiscal year, it topped the mark by 8 cents, and in the third quarter of the last fiscal year, it was ahead by 5 cents.

Margins increased in the fourth quarter of the last fiscal year after dropping the quarter before. Gross margin grew 2.5 percentage points from the year-earlier quarter to 57.8%. In the third quarter of the last fiscal year, the figure rose 26.4 percentage points to 31.1% from the year earlier quarter.

The company reported a profit last quarter after being in the red the prior quarter. In the third quarter of the last fiscal year, the company booked a net loss of $8.7 million, or a loss of 10 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 18 cents per share to 15 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is 50 cents per share, down from 62 cents ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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