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Wednesday, May 13, 2026

Tech Stocks Fall Day After Earnings, Warnings

Shares of Western Digital Corp. and Conexant Systems Inc. fell more than 8% in midday trading Friday, a day after reporting quarterly results and warning of a slowdown in sales. Emulex Corp., which also warned of a slowdown on Thursday, fell 6%.

Lake Forest-based Western Digital said Thursday sales for the December quarter climbed 28% to $1.4 billion. Net income climbed 23% to $128 million at the disk drive maker.

Investors seized on concerns about profits, drive prices and a buildup of unsold drives.

Newport Beach chipmaker Conexant said it swung to profitability in the recently ended quarter, recording a net profit of $976,000, up from a year-ago loss of $24.3 million.

Costa Mesa-based Emulex posted a net loss of $10 million driven by onetime charges of $22 million for its October buy of Roseville-based Sierra Logic Inc.

Without the charges, the company earned $24.9 million for the quarter ended Dec. 29. A year ago, Emulex had $17.2 million in profits.

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