Orange County Business Journal

Emulex Beats Profit, Revenue Targets

Chris Casacchia Thursday, October 27, 2011

Costa Mesa-based data storage equipment maker Emulex Corp. reported revenue and adjusted profits for the September quarter that beat Wall Street expectations.

Emulex, which makes adapter cards, switches and other gear that speed up the flow of data on corporate storage networks, posted revenue of $118.4 million, up 15% from a year earlier.

Analysts on average had forecast revenue of $115.5 million.

Adjusted profits hit $11.8 million, up 20% from a year ago and beating analyst estimates of $9.7 million.

The strong earnings report comes on the heels of disruptions of the company’s Thailand operations as the region copes with one of its worst floods in decades.

Emulex suspended operations at a subcontracted manufacturing plant there earlier this month due to flooding. The company said the building sustained some damage but equipment, inventory and finished products were spared by a move to a higher floor.

Emulex is one of several Orange County-based companies that have seen disruptions to operations in Thailand, which has borne the brunt of severe flooding caused by a heavy monsoon season punctuated by typhoons.

The company is focused on working through any temporary supply issues resulting from the recent Thailand flooding, Chief Executive Jim McCluney said.

Emulex projects revenue of $121 to $127 million for the current quarter, in line with analyst forecasts of $122 million.

Emulex saw revenue of $113 million in the December quarter a year ago.

The company said adjusted profits should be between $15 million and $17.6 million, above Wall Street’s profit target of $14.1 million.

Emulex competes with Aliso Viejo-based QLogic Corp. on a profitable piece of networking electronics.

The two companies dominate the market for host bus adapters−circuit boards that link computers on data storage networks−and compete in one of the county’s oldest rivalries.

QLogic is the market leader in that segment.

Emulex spun off QLogic in the early 1990s.