Shares of Costa Mesa’s Emulex Corp., a maker of electronics for data storage networks, fell on Thursday after the company reported results for the June quarter that were roughly in line with Wall Street’s expectations.
The stock fell more than 2% in afterhours trading on a recent market value of $730 million.
At this point in the economic recovery, investors seem to be after a consistent “beat and raise” quarter. That’s when companies top expectations for the recently ended quarter and guide higher for the current one.
For the three months through June 27, Emulex recorded sales of $103 million, up 30% from the same period a year earlier and just ahead of analysts’ expectation of $102 million in sales.
Excluding charges for stock compensation, write-downs on assets, legal fees and other one-time costs, Emulex posted profits of $14 million, up 76% from the year-ago quarter and in line with analysts’ expectations.
Emulex highlighted its recent design wins for a new technology called “converged networking,” in which hefty data storage networks and everyday Ethernet networks travel through a single set of wires, cutting down on costs.
In the past six months, Emulex has landed significant design wins for servers made by Hewlett-Packard Co., Dell Inc., Fujitsu Ltd. and had one of its products qualified by Cisco Systems Inc.
Chief Executive Jim McCluney said the quarter “was a great capstone to a pivotal fiscal year.”
“We delivered against our vision for converged networking by launching an unprecedented number of 10 gigabit/Ethernet-based design wins,” McCluney said in a statement. “We have demonstrated our leadership in this new growth opportunity, and are well positioned for meaningful growth in fiscal year 2011.”
Emulex didn’t give an outlook for the September quarter.
For the current quarter, analysts are expecting Emulex to see adjusted profits of $14 million, which would be more than double profits from the same period a year earlier.
Sales are seen coming in at $105 million, up 23%.
