Emulex: Preliminary 2Q10 Financial Results

Emulex Corporation announced preliminary results for its second fiscal quarter ended December 27, 2009.

Second Quarter Financial Highlights:

Total net revenues of $107-$108 million exceeding the high end of guidance of $88 – $92 million
Host Server Products (HSP) net revenues increased 28 percent sequentially, representing approximately 75 percent of net revenues
Fibre Channel over Ethernet Converged Network Adapter (FCoE CNA) net revenues grew over 50 percent sequentially
Embedded Storage Products (ESP) net revenues increased over 20 percent sequentially, representing approximately 25 percent of net revenues
GAAP diluted Earnings Per Share of $0.09 – $0.10
Non-GAAP diluted Earnings Per Share of $0.16 – $0.17 exceeding the high end of guidance of $0.10 – $0.12

Business Highlights:

Emulex announced general availability of its OneConnect UCNAs and OneCommand Manager
Launched Emulex Edge Partner Program for Converged Networking VARs
Emulex named Market Share Leader in Fibre Channel over Ethernet (FCoE) CNAs according to Dell’Oro Group

President and CEO Jim McCluney commented: "We executed very well to deliver the December quarter results, which were driven by broad customer demand across both our HSP and ESP product lines. I’m particularly pleased with the tangible benefits we are now seeing from our sales and marketing efforts over the past year to gain market share in Fibre Channel board level products, and this momentum has continued into the new year.”

“With an expanding portfolio of UCNA and embedded product design wins ramping in the first half of the year, combined with an improving IT spending environment, we are exceptionally well positioned to deliver meaningful revenue growth in 2010,” concluded McCluney.

Emulex expects to announce its final second quarter financial and operating results on January 21, 2010 and will provide additional information and commentary during its regularly scheduled quarterly conference call after the market closes on that date.