EMLX weighed in for the FC sector and here's what they said........
Emulex Reports Record Second Quarter Earnings
Fibre Channel Momentum Generates Acceleration in Total Revenue Growth to 113%
COSTA MESA, Calif.--(BUSINESS WIRE)--Jan. 20, 2000--Emulex Corp. (NASDAQ:EMLX - news), the world's largest independent supplier of fibre channel adapters, Thursday announced results for its second fiscal quarter ended Dec. 26, 1999.
Revenues expanded 113% to $33.6 million, up from the $15.7 million reported for the same quarter a year ago. Net income for the second quarter of fiscal 2000 rose over 1,800% to a record $8.8 million, or $0.23 per share on a diluted basis, compared with net income of $440,000, or $0.02 per diluted share, for the same quarter a year ago. During the second quarter, Emulex implemented a two-for-one stock split which was effective on Dec. 15, 1999 and all results have been restated accordingly. Net income for the second quarters of both fiscal 1999 and fiscal 2000 benefited from a lower effective tax rate than statutory tax rates primarily as a result of the continued utilization of certain net operating loss carryforwards. Assuming a 35% tax rate, net income for the second quarter of fiscal 2000 would have amounted to $6.3 million, or $0.17 per share on a fully diluted basis, up over 1,800% from net income of $318,000, or $0.01 per diluted share, for the same quarter a year ago.
``Fibre channel revenues continued to accelerate and grew 259% in the second quarter of fiscal 2000 compared to a year ago,' stated Paul F. Folino, president and chief executive officer. ``Cumulative sales of Emulex fibre channel host bus adapters have now surpassed the $100 million mark and reflect Emulex's continued No. 1 market share leadership position in host bus adapters. Interestingly, while Emulex entered the fibre channel industry nearly five years ago, we generated nearly one-quarter of our cumulative adapter revenues to date in the second quarter, reflecting the strong momentum and widespread acceptance of this next-generation I/O technology.'
Emulex's traditional networking product sector, which is comprised of network access products and printer servers, continued to mature and collectively declined 33% from a year ago. Reflecting these trends, the company's fibre channel business grew to 84% of total Emulex second quarter revenue, up from 50% of revenue a year ago and up from 75% of revenue in the first quarter of fiscal 2000. Driven by expanding fibre channel sales, operating margin expanded sequentially to 23% in the second quarter compared with 20% in the first quarter of fiscal 2000.
For the six months ended December 1999, Emulex's revenues totaled $62.5 million, compared with $29.8 million reported a year ago. Net income for the first six months of fiscal 2000 amounted to $15.6 million or $0.41 per share on a diluted basis, compared with $862,000 or $0.03 per diluted share for the same period a year ago. Assuming a 35% tax rate, net income for the six-month period ending December 1999 was $11.2 million or $0.30 per diluted share compared with $623,000 or $0.02 per diluted share for the prior year.
New announcements of fibre channel products accelerated in the second quarter, as Emulex announced its first S-bus adapter and three new-generation 64-bit 66 MHz PCI host bus adapters.
``Our new LP9002 2-gigabit per second PCI adapter delivers up to 400 megabytes per second in data transfers in full-duplex mode, more than double the throughput of today's SCSI technology,' noted Folino. ``Coupled with our 2 gigabit per second hub demonstrated at Comdex last November, Emulex is leveraging the scalability of the fibre channel standard and our own modular architecture to deliver new levels of performance across our entire fibre channel product line.'
Following Intel's September 1999 announced specification of Emulex host bus adapters and hubs for 8-way platforms based on Intel's Profusion chipset, Emulex also announced that Unisys had selected its LP8000 host bus adapter to provide fibre channel connectivity for the Unisys e-@ction Enterprise Server, which is based on the Intel Profusion chipset.
``Bolstered by Intel's endorsement, Emulex has built a growing portfolio of Windows NT/2000 design wins over the past year,' said Folino. Will it work the same for ANCR
Emulex has captured endorsements for its fibre channel products in NT environments from such industry leaders as EMC, Intel, Compaq, Hitachi, MTI, NEC, Unisys and Comparex.
Emulex Corp. is a leading designer, developer and supplier of a broad line of fibre channel host adapters, hubs, ASICs and software products that enhance access to, and storage of, electronic data and applications. The company's products are based on internally developed ASIC technology, are deployable across a variety of heterogeneous network configurations and operating systems, and enhance data flow between computers and peripherals. Emulex's products offer customers the combination of critical reliability, scalability, high performance and customization for mission-critical server and storage system applications. The company also markets traditional networking products such as printer servers and network access products, including communications servers and WAN adapters. Emulex markets to OEMs and end users through its own worldwide selling organization, as well as two-tier distribution partners. Corporate headquarters are located in Costa Mesa. News releases and other information about Emulex Corp. are available via Emulex's World Wide Web address at emulex.com.
EMULEX -- the fibre channel company
Emulex Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended
December 26, December 27,
1999 1998
Net revenues $33,603 $15,746
Cost of sales 17,910 9,603
Cost of sales -- inventory charges
related to consolidation -- 678
Total cost of sales 17,910 10,281
Gross profit 15,693 5,465
Operating expenses:
Engineering and development 3,799 2,640
Selling, general and administrative 4,170 2,735
Consolidation charges, net -- (361)
Total operating expenses 7,969 5,014
Operating income 7,724 451
Nonoperating income 2,017 38
Income before income taxes 9,741 489
Income tax provision 974 49
Net income $ 8,767 $ 440
Net income per share:
Basic $ 0.25 $ 0.02
Diluted $ 0.23 $ 0.02
Number of shares used in per share computations:
Basic 35,278 24,598
Diluted 38,178 27,043
Emulex Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Six Months Ended
December 26, December 27,
1999 1998
Net revenues $62,499 $29,797
Cost of sales 33,909 17,946
Cost of sales -- inventory charges
related to consolidation -- 1,304
Total cost of sales 33,909 19,250
Gross profit 28,590 10,547
Operating expenses:
Engineering and development 7,149 5,301
Selling, general and administrative 8,015 5,325
Consolidation charges, net -- (987)
Total operating expenses 15,164 9,639
Operating income 13,426 908
Nonoperating income 3,871 50
Income before income taxes 17,297 958
Income tax provision 1,730 96
Net income $15,567 $ 862
Net income per share:
Basic $ 0.45 $ 0.04
Diluted $ 0.41 $ 0.03
Number of shares used in per share computations:
Basic 34,847 24,567
Diluted 38,018 26,472
Emulex Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
December 26, June 27,
1999 1999
Assets
Current assets:
Cash and cash equivalents $ 17,598 $ 22,284
Investments 99,509 83,164
Accounts and other receivables,
net 17,233 17,088
Inventories, net 9,731 11,083
Prepaid expenses and other current
assets 1,036 719
Total current assets 145,107 134,338
Property and equipment, net 3,344 3,168
Long-term investments 43,628 32,216
Deferred income taxes and other
assets 3,515 269
$195,594 $169,991
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 11,604 $ 11,395
Accrued liabilities 6,203 4,291
Income taxes payable and other
current liabilities 348 358
Total current liabilities 18,155 16,044
Deferred income taxes 153 2,054
Total stockholders' equity 177,286 151,893
$195,594 $169,991
--------------------------------------------------------------------------------
Contact:
Emulex Corp., Costa Mesa |
