EMLX ( $20-$24+) PE=137 ? Cap= $42Bil .... nudges ahead of forecast, shares rebound
siliconinvestor.com
COSTA MESA, Calif., Oct 18 (Reuters) - Emulex Corp. (NasdaqNM:EMLX - news), a storage equipment maker, on Thursday posted a sharp net loss for its fiscal first quarter, but operating earnings of $7.5 million still edged ahead of forecasts.
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For the first quarter ended in September, pro forma net income, including deferred employee compensation, acquisition write-offs and a one-time inventory write down, Emulex reported a net loss of $40 million, or 49 cents per share, compared with $12.9 million, or 17 cents, for the year-earlier quarter.
Excluding these one-time items, operating net income dropped to $7.5 million, 9 cents per diluted share, compared with $12.9 million, or 17 cents per share, in the year-ago quarter. The latest quarter's results were 1 cent per share ahead of the 8 cents forecast by analysts surveyed by Thomson Financial/First Call, which surveys broker estimates.
Revenues slipped to $52.7 million, down 5 percent from the $55.5 million reported for the same quarter a year ago.
Following the report, Emulex shares gained as much as 96 cents to $21.01 in after-hours trading, erasing the 4.6 percent drop in the Emulex stock price during the regular session on Nasdaq on Thursday.
Near the end of September, Emulex said it took a write down of excess and obsolete inventories amounting to about $13.6 million associated with slowing demand for older generation one gigabit, or billion pit per second, data products. A switch to newer generation ``2 gigabit'' adapters used to connect computers to storage devices was occurring faster than expected, it said.
Chief Executive Paul Folino said in a statement the company was taking several unspecified actions to control expenses. It said it was pushing its sales force to focus on winning new accounts that will allow it to boost market share when business demand rebounds.
``Although business had been tracking to expectations, we experienced a pause in shipment and order activity in the aftermath of the terrorist attacks on September 11, which modestly reduced results for the first fiscal quarter,'' he said.
The executive said that, while demand for the company's products had shown some improvement recently, ``the prevailing demand trend amid fluctuating order patterns and the full economic impact of the terrorist events on upcoming quarters are difficult to gauge.'' |
