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Emulex Slumps on Quarterly Outlook

Shares of Costa Mesa’s Emulex Corp., a maker of electronics for data storage networks, slumped in afterhours trading after the company gave an outlook for the current quarter that falls short of analysts’ expectations.

The stock fell 3% on a recent market value of about $570 million. Emulex’s shares are off some 50% in the past year.

For the three months through March, Emulex said it’s expecting revenue of $78 million to $85 million, less than analysts’ expected sales of $102 million.

Excluding charges for stock compensation, severance pay, write-downs on assets and other costs, the company is looking for profits of $2 million to $4 million, well short of analysts’ expected $14 million in profits.

The poor outlook comes after Emulex on Tuesday reported December quarter results that slightly beat analysts’ expectations, which were revised downward earlier this month after the company gave a warning on lower sales and shrinking profits.

For the three months through December, Emulex reported $109 million in revenue, down 17% from the year-ago quarter and slightly ahead of analysts’ expected $108 million in sales.

Excluding charges, the company posted $19 million in profits, down 32% from the same period a year ago and beating analysts’ expectation of $16 million in profits.

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