Costa Mesa-based Emulex Corp. beat Wall Street expectations with results for the recently ended quarter but offered a narrowed outlook for the current quarter.
For the September quarter, Emulex said it expects profits of $2.5 million to $5 million, which at the low end is less than the $5 million analysts had been expecting on average.
Emulex forecast sales of $78 million to $82 million, versus the average Wall Street estimate of $81 million.
The narrowed outlook saw the company’s shares slip about 2% in afterhours trading on a recent market value of t $760 million.
The outlook came on the heels of Emulex’s results for the June quarter, which beat Wall Street’s expectations.
For the three months through June, Emulex reported sales of $79 million, down 30% from a year earlier and just ahead of analysts’ expected $78 million in sales.
Excluding charges for stock compensation, severance pay, legal fees and other costs, the company recorded profits of $8 million, down 59% and beating analysts’ expectation of $3 million in profits.
Emulex ended the quarter with about $300 million in cash and short-term assets.
Last month, Irvine-based Broadcom Corp. dropped its bid to acquire Emulex after directors rejected its upped $912 million buyout offer.
It ended two months of public takeover drama that started with Broadcom’s April offer of $764 million, which Emulex rejected on several occasions.
Emulex now faces the challenge of showing investors and industry watchers that it can grow to be more valuable than Broadcom’s offer on its own.
