Costa Mesa’s Emulex Corp., a maker of electronics for data storage networks, on Monday gave an outlook for the current quarter that fell short of what Wall Street had been expecting.
For the three months through June, Emulex said it is expecting sales of $73 million to $80 million, less than analysts’ expectation of $83 million in revenue.
The company gave a wide profit window of $826,000 to $4 million, excluding charges. That’s short of Wall Street’s expected $5 million in profits.
The worse than expected guidance comes on the heels of Emulex’s results for the three months through March, which missed expectations on sales but beat on profits.
Emulex reported sales of $79 million, down 39% from the same period a year ago and just shy of analysts’ expected $81 million in revenue.
Excluding charges for stock compensation, severance pay and write-downs on assets, the company posted a profit of $4 million, down 84% from in the year ago quarter and beating analysts’ expectation of $3 million in profits.
Including the charges, Emulex swung to a loss of $6 million.
It’s shares were flat in afterhours trading on a recent market value of about $855 million.
Emulex faces a hostile buyout bid by Irvine chipmaker Broadcom Corp.
Last week, Broadcom went public with a $764 million offer for Emulex, which Emulex initially rejected in December.
The bid was worth 40% more than what Emulex was trading at before news of the offer broke.
Emulex’s stock was off 50% for the past 12 months before surging last week.
The company had a market value of about $850 million last week, after investors bid up the stock beyond Broadcom’s offer on speculation that a higher bid could come.
A deal with Emulex would push Broadcom in the market for chips and circuit boards that link computers serving up data for corporations, banks and others.
It also would give it a leg up on an emerging technology, dubbed fibre channel over Ethernet, which promises to merge specialized data networks with cheaper, everyday networks of servers and desktop computers.
Emulex didn’t breathe a word about the hostile bid in its earnings announcement on Monday.
Last week, the company’s board said it’s set to review Broadcom’s offer and it had hired Goldman Sachs Group Inc. and law firm Gibson, Dunn & Crutcher LLP as advisers.
