Share this article:
Costa Mesa networking electronics maker Emulex Corp. on Thursday reported financial results in the June quarter that beat Wall Street expectations.
The company posted revenue of $129 million, up 5% from a year earlier.
Analysts on average had forecast sales of about $127 million.
Adjusted profits came in at $23.2 million, beating consensus estimates of $19 million.
For its fiscal year ending June 30, Emulex reported record revenue of $501.8 million, up 11% from a year ago.
This is the second straight year Emulex has seen double digit revenue growth.
Adjusted profit topped $76.1 million, up 62%.
Emulex designs and makes networking equipment that connects storage, servers and data centers. It is among a burgeoning group of networking-equipment makers competing in the emerging 10-gigabit Ethernet connection market for data centers.
That segment saw a 70% sales jump year over year.
The company’s Storage Connectivity Products segment, led the gains in the recently ended quarter. That segment was up 58% to $32.7 million.
Network Connectivity Products, the company’s largest business line which includes 10-gigabit devices, saw sales slide 7% to about $88 million in the June quarter.
Emulex provided guidance for the current quarter.
It projects sales in the September quarter of $118 to $122 million, below Wall Street expectations.
Adjusted profits are projected to be in the $12.1 million to $13.8 million range.
Analysts are forecasting adjusted profits of $18.2 million.
The company also said it will pay $58 million in the current quarter as a partial patent litigation settlement.
It took a $38.5 million charge in the recently ended quarter.
Emulex in early July announced it will pay Irvine-based chipmaker Broadcom Corp. $58 million in release and licensing fees related to a long-running patent dispute regarding fibre-channel and Ethernet technology.
The resolution cleared up one of three pending patent lawsuits between the companies.
For years it has battled Aliso Viejo-based rival QLogic Corp., the market share leader in fibre-channel adapters and another 10-gigabit player.
Emulex spun off QLogic in the early 1990s.
Investors may have seized upon the disappointing guidance, sending Emulex shares down 2.6% in after hours trading to a market value of about $788 million after Thursday's earnings report. Shares were down 8.45% in midday trading Friday.