Emulex Reports Third-Quarter Results Business Editors & High-Tech Writers
Revenues totaled $18.2 million, up 21% from the $15.0 million reported for the same quarter a year ago. Net income for the third quarter of fiscal 1999 amounted to $1.4 million, or $0.20 per share on a diluted basis, compared with a net loss of $12.8 million, or $2.08 per share, for the same quarter a year ago.
Results for the third quarter of the prior fiscal year included unusual items, comprised of $1.9 million of incremental inventory reserves in cost of sales and $11.0 million of consolidation charges. Excluding these items, net income for the third quarter of fiscal 1998 would have been $137,000, or $0.02 per share on a diluted basis.
"Third-quarter shipments of fibre channel host adapters and hubs rose 159% from a year ago," stated Paul F. Folino, president and chief executive officer. "In contrast, Emulex's traditional networking product sector, which is comprised of network access and printer servers, continued to mature and collectively declined 12% on a sequential basis.
"This decline in our traditional networking product sector was offset by increased shipments in the company's LightPulse(TM) fibre channel product line, which expanded 44% sequentially and propelled sequential growth for total revenue to 16%.
"As a result of these trends, fibre channel expanded to just over 62% of revenue in the third quarter, up from 50% of revenue in the second quarter. This fibre channel increase enabled Emulex to sequentially expand diluted earnings per share by 82%, from $0.11 to $0.20 per share, excluding unusual items."
For the nine months ended March 1999, Emulex's revenues totaled $48.0 million, compared with $45.5 million reported a year ago. Including unusual charges detailed separately below, net income for the first nine months of fiscal 1999 amounted to $2.2 million, or $0.33 per share on a diluted basis, compared with a net loss of $11.0 million, or $1.80 per diluted share for the same period a year ago.
Excluding those charges, net income would have been $2.5 million, or $0.37 per share on a diluted basis in the first nine months of fiscal 1999, compared with $1.7 million, or $0.26 per share on a diluted basis for the same period a year ago.
Shortly after the close of the third quarter, Emulex announced that it had filed a registration statement with the Securities and Exchange Commission relating to a proposed public offering of 2.1 million shares of common stock, of which 2 million shares will be offered by the company and 100,000 shares will be offered by a selling stockholder.
Net proceeds from the offering will be used for working capital and general corporate purposes, including capital expenditures, expansion of sales and marketing and research and product development efforts.
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