What are you looking for ?
Infinidat
Articles_top

Emulex: Fiscal 2Q08 Financial Results

Revenues increased 12% and net income 75% sequentially, but low expectations for 3Q08.

Emulex Corporation announced results for its second fiscal quarter ended December 30, 2007.

Second Quarter Highlights

  • Total net revenues of $130.6 million, an increase of 12% sequentially and 8% year-over-year
  • Host Server Product (HSP) net revenues of $94.4 million, or 72% of total net revenues
  • HSP installed base surpasses five million ports
  • Embedded Storage Product (ESP) net revenues of $36.1 million, or 28% of total net revenues
  • GAAP gross margin of 63% and non-GAAP gross margin of 68%
  • GAAP operating income of $25.4 million, or approximately 19%
    of total net revenues, and record non-GAAP operating income of $41.1
    million, or approximately 31% of net revenues
  • GAAP diluted EPS of $0.21 and non-GAAP diluted EPS of $0.34
  • Cash, cash equivalents and investments of $307.6 million, an
    increase of $32.7 million from $274.9 million at the end of the prior
    quarter
  • Inventory turnover of 10.8 times

Financial Results

Second fiscal quarter net revenues were $130.6 million, an increase
of 12% sequentially and 8% from the second quarter of fiscal 2007, and
represented the highest quarterly revenues in the Company’s history.
Second quarter GAAP net income was $17.6 million, or $0.21 per diluted
share. GAAP net income per diluted share increased 75% sequentially
from $0.12 per diluted share in the first fiscal quarter and compared
favorably to a loss of $0.12 per share in the year ago period. Non-GAAP
net income for the second fiscal quarter, which excludes amortization
of intangibles and stock-based compensation, was $28.2 million, or
$0.34 per diluted share. Non-GAAP net income per diluted share
increased 26% both sequentially and year-over-year from $0.27 per
diluted share in both of the prior periods. Reconciliations between
GAAP and non-GAAP results are included in the accompanying financial
data.

Jim McCluney, president and CEO commented, "After a strong start in
our first quarter of fiscal 2008, we followed up with record revenues
and record non-GAAP operating income in our second quarter. Embedded
Storage Products (ESP), which grew 29% sequentially, was a key
contributor to achieving these results. We expect continued momentum in
the March quarter from design wins which have begun shipping recently
and several more unannounced wins to further drive ESP revenue and
deliver on our diversification strategy. In addition, we saw solid
performance from our Host Server Products where Fibre Channel HBAs and
mezzanine cards for blade servers grew more than 10 percent
sequentially
."

"Technology leadership for the data centers of today and tomorrow is
our priority. Today, the need to handle the unrelenting growth of
digital data within tightening budget constraints is driving demand for
products that enable CIOs to deploy lower cost virtualized servers and
tiered storage. For the converged data centers of tomorrow, we
partnered with Nuova Systems to showcase the first demonstration of
Fibre Channel over Ethernet (FCoE) in Europe at Storage Networking
World during the quarter
," concluded McCluney.

Business Outlook

Although actual results may vary depending on a variety of factors,
many of which are outside the Company’s control, Emulex is providing
guidance for its third fiscal quarter ending March 30, 2008. Emulex is
budgeting for third quarter net revenues in the range of $127-$131
million. The Company expects non-GAAP gross margin will be
approximately 67% and non-GAAP earnings per share could amount to
$0.28-$0.30. On a GAAP basis, Emulex expects gross margin of
approximately 62% and diluted third quarter earnings per share of
$0.16-$0.18 per share, reflecting approximately $0.12 per diluted share
in expected GAAP charges arising primarily from amortization of
intangibles and stock-based compensation.

Emulex Corporation

Articles_bottom
AIC
ATTO
OPEN-E