Emulex Shares Slump on OutlookTuesday, April 26, 2011
Shares of Costa Mesa-based Emulex Corp. slumped Tuesday, a day after the networking electronics maker reported a weak outlook for the current quarter.
Emulex’s shares were off about 4% in midday New York trading to a market value of about $870 million.
On Monday, Emulex reported an adjusted profit for the three months through March of $8.9 million, down 67% from a year earlier.
The lower profit was in line with Wall Street expectations.
Revenue came in at $112 million, up 10% from a year earlier, ahead of the $110.5 million analysts had expected on average.
Emulex, which makes adapter cards, switches and other gear that speeds up the flow of data on corporate storage networks, spooked Wall Street with its outlook for the current quarter.
The company forecast an adjusted quarterly profit of $7.1 million to $10.7 million, versus the $12.5 million analysts had been expecting.
Emulex said it sees higher costs in the quarter and more sales of less profitable products.
The company said it is closing two unspecified design facilities and laying off 63 people.
Sales for the current quarter are seen coming in at $117 million to $123 million. Analysts had been forecasting sales of $117.6 million.