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Technology Stocks : Emulex, What Prospects? -- Ignore unavailable to you. Want to Upgrade?

To: Elmer Flugum who wrote (171)	10/13/1999 10:01:00 PM
From: Neville H. J. Gorman	Read Replies (1) \| Respond to of 788

Not cheap this stock. But earnings are stellar of course. Putting this stock at a runrate of a trailing PE of 76. Not bad. Yes but taxes will change in the future. Otherwise profits would have been $0.26/share. Still great momentum. Sequential FC growth still smoking @54%! If this stock only goes up its growth rate in the future it's still a great investment to keep. I won't sell. Let the profits roll!! Looking good! The question still remains if estimates were really 0.16 c. If so it's unbelievable. Even fully taxed earnings at 0.26 c would blow it away big time. All I can say is that I'm pleased very much. GO EMLX!!! 'In the first quarter of fiscal 2000, Emulex's fibre channel shipments rose 298% from a year ago, a continued acceleration above the 159% and 213% growth rates experienced in the third and fourth quarters of fiscal 1999, respectively.' 'While the pace of demand for adapters continued to rise in the first quarter, the strongest percentage gains were achieved by our digital hubs which OEMs are deploying to provide economical scalability in Storage Area Networks (SANs). In the first quarter of fiscal 2000, total fibre channel revenue rose 54% sequentially from the fourth quarter of fiscal 1999.'' Emulex's traditional networking product sector, which is comprised of network access and printer servers, continued to mature and collectively declined 16% from a year ago. Reflecting these trends, the Company's fibre channel business grew to 75% of total Emulex first quarter revenue, up from 39% of revenue a year ago and up from 69% of revenue in the fourth quarter of fiscal 1999. Driven by expanding fibre channel sales, operating margin expanded sequentially to 20% in the first quarter of fiscal 2000 compared with 13% in the fourth quarter of fiscal 1999.