Costa Mesa’s Emulex Corp., a maker of electronics for data storage networks, has joined the ranks of local technology companies that have lowered their outlooks for the December quarter. But Wall Street doesn’t seem bothered.
Emulex said it expects December quarter sales of $107 million to $108 million, down from its previous estimate of $111 million to $116 million.
Excluding charges for stock compensation, acquisitions and other costs, the company said it’s expecting to post profits at the low end of its forecast of $16 million to $19 million.
Wall Street analysts on average are looking for Emulex to report profits of $17 million on sales of $113 million.
Investors shrugged off the news.
Emulex shares were up about 6% at close of trading on a recent market value of about $600 million.
“The negative preannouncement was not a surprise,” Kaushik Roy, an analyst at Pacific Growth Equities LLC in San Francisco said in a research note.
Roy said the company is “likely to continue focus on cost cutting.”
“We believe Emulex management may continue to reduce headcount and cut expenses in anticipation of slower March and June quarters,” he said.
In addition to Emulex, Irvine’s Broadcom Corp., Newport Beach’s Mindspeed Technologies Inc., Santa Ana’s STEC Inc. and Newport Beach-based Conexant Systems Inc. have all lowered their outlooks in recent weeks.
Emulex, which has seen it’s shares fall 60% in the past 12 months, is set to report results for the December quarter in late January.
