Emulex Shares Rise on Better Outlook, Thai RecoveryTuesday, January 10, 2012
Shares of Costa Mesa-based Emulex Corp. rose today after the data storage and network equipment maker upped its outlook based on a quicker-than-expected recovery of its production in Thailand.
Emulex said yesterday that earnings for the quarter ended Jan. 1 would top earlier guidance, sending its shares up by about 10% in after-hours trading. The boost continued today, with shares closing up 13%, to a market value of about $715 million.
The company projected that earnings adjusted to exclude one-time items would be 24 to 25 cents per share, with revenue in $127 million to $128 million range.
Wall Street had expected adjusted earnings of 17 cents a share and $124.1 million in revenue.
Emulex is slated to report results for the quarter on Jan. 26.
The improved outlook comes on the heels of disruptions of the company’s Thailand operations in the wake of the worst flooding to hit Southeast Asia in decades.
Emulex suspended operations at a subcontracted manufacturing plant there in October. The company said the building sustained some damage but equipment, inventory and finished products were spared by a move to a higher floor, aiding in the quick recovery.
Emulex is one of several Orange County-based companies that saw disruptions to operations in Thailand, which has bore the brunt of severe flooding caused by a heavy monsoon season punctuated by typhoons.
Other companies affected, including Irvine-based Western Digital Corp. and Microsemi Corp. in Aliso Viejo, also have made recent strides on regaining production capacity in Thailand.