Shares of Costa Mesa’s Emulex Corp., a maker of electronics for data storage networks, continued to plunge on Tuesday, a day after the company gave a disappointing outlook for the current quarter.
The stock closed down 9% on a recent market value of $1 billion.
For the three months through June 27, Emulex narrowed its profit outlook of $13 million to $16 million, roughly in line with analysts’ expectation of $15 million in profits.
The company expects sales of $100 million to $103 million, which falls short of analysts’ outlook of $107 million in revenue.
The less-than-rosy outlook comes on the heels of Emulex’s results for the March quarter, which were in line with expectations.
Excluding charges for stock compensation, write-downs on assets, legal fees and other one-time costs, Emulex swung to a profit of $13 million for the three months through March 28. That’s up from a loss of $7 million from the same period a year earlier and in line with analysts’ expectations.
The company saw sales of $102 million, up 30% from the year-ago quarter and in line with analysts’ expectations.
During the quarter, Emulex Chief Executive Jim McCluney said the company landed design wins with its new converged network adapter with industry heavyweights IBM Corp., Hewlett-Packard Co., Hitachi Data Systems Ltd. and EMC Corp., among others.
