Costa Mesa? Emulex Corp. has continued to lose ground to rival QLogic Corp. of Aliso Viejo in the market for a profitable bit of electronics for data storage networks.
In the first quarter, QLogic continued to grab market share from Emulex for what? known as host bus adapters, which speed the flow of data on storage networks, according to a report from Redwood City-based market tracker
Dell?ro Group Inc.
QLogic and Emulex have a long-held duopoly in host bus adapters, with more than 80% of the market between them.
QLogic grew its share to 56% during the first quarter, up from 54% in the fourth quarter and up from 50% a year earlier, Dell?ro data showed.
Emulex reported market share of 37%, down from 39% in both the fourth and first quarters of last year.
?he latest market data demonstrates that we were again successful in widening our lead over the competition,?said Amit Vashi, vice president of marketing for QLogic? host solutions group.
Emulex? sinking market share puts a finer point on some of the reasons Irvine-based Broadcom Corp. is looking to buy it.
The Irvine chipmaker in a statement last week said that Emulex ?as failed to demonstrate an ability to convert design wins into either revenue growth or market share.?p>The latest numbers will likely be further ammunition for Broadcom Chief Executive Scott McGregor, who last week said he? taking Broadcom? rebuffed $764 million offer for Emulex directly to shareholders.
Along with its hostile bid, Broadcom launched a few barbs at Emulex to entice shareholders to give the green light to a buyout.
In a letter to Emulex? stockholders, McGregor pointed to Emulex? deteriorating value, including declining sales and shrinking profits in the past year or so.
He also brought up Emulex? lost market share to QLogic.
?ver the last several years, including this most recent quarter, Emulex has continued to lose share to its larger competitor,?McGregor said.
Emulex? shares closed down slightly on a recent market value of about $880 million.
