Notes on the EMLX Q3 conference call 4/13/2000
vcall.com
Mike - CFO
- Sales 100% increase Y2Y, 36M total
- 20% decline Y2Y in traditional networking products, plan for further decline to nothing in FY2001
- 173% increase Y2Y in fibre channel revs
- 9% Q2Q increase in fiber channel
- Adapter 13% Q2Q increase
- 5% hub rev of total
- EMLX grown faster than the market.
- Fiber channel backlogs increase 30% Q2Q, indicates strength, backlog represent less than half of revenue
- 48% GrossMargin for Q3 from 41% Q2, targeting 20-25% long term
- 7% increase spending in R&D from Q2Q, plan to go to 12-14% of rev
- 460% increase Y2Y in net income
- Fiber channel is 82% of revenue
- 172M in cash and investments
- EPS would have been higher but EMLX switched from a 10% tax rate to 35% charge.
Paul - CEO
- EMLX is the rev leader in fiber channel adapter with 26% of the Host Bus Adapter (HBA) market.
- gained market share vs. competitior and captive providers
- IBC predicting 60% compounded growth rate for fiber channel; 270M in 1999 to 1.8B in 2003 for fiber channel sales, 12% q2q growth rate in sector
- 100 platform design wins from 70% of the world's top 30 server and storage system manufacturers
- 67% of fiber channel rev came from OEM customers for q3, rest via channels
- "A-KEL" EMC largest european distributor is a new customer - (garbled this folks)
- EMLX and Qlogic have captured most of the design wins.
- HP design win is significant for future.
- UNIX 69% of the fiber channel SAN market in 1999 with 53% y2y growth to 2003 per IBC.
- Windows design wins have helped capture that market
- EMC, HP, Compaq, Futjitsu-Siemens, Hitachi, Usisys are NT customers
- NT customers EMC and Compaq dominate the NT SAN market.
- 103% NT SAN y2y growth per IBC.
- Fiber channel is a superior technology vs. gigabit ethernet and market is moving this way. Ethernet has no storage support in the industry. Gigabit ethernet (GbE) has small frame size and high lantency create performance pronlem and that is why fiber channel was developed. GbE Offers no benefit over fiber channel. Every storage vendor support fiber channel vs. ethernet.
Unfortunately the VCALL kicked out three times at this point.
Jack |
