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Technology Stocks : Network Appliance -- Ignore unavailable to you. Want to Upgrade?

To: Bretsky who wrote (6604)	2/12/2001 10:48:09 AM
From: straight life	Respond to of 10934

"Anything else out there?" EMLX warns: downgraded. QLGC too. Sector effect; regardless, NTAP doing well by comparison. Emulex Cuts Outlook; Stock Whacked NEW YORK (Reuters) - Shares of high-speed networking equipment maker Emulex Corp. (NasdaqNM:EMLX - news) fell more than 48 percent early Monday, after the company said it may miss Wall Street forecasts if order deferrals continue to mount. The stock fell $37-1/2 to $40 on the Nasdaq market as word of its softening outlook, issued late Friday, spread through the market. The stock, which was Nasdaq's top net loser and second most active issue, has ranged from $17-3/4 to $112-3/4 in the past year. The Emulex sell-off comes about six months after a false press release issued by a college student warned of an Emulex profit shortfall, wiping $2.5 billion off its stock market value in a matter of minutes. In Friday's conference call, held after the close of stock trading, the company said it had begun to see order deferrals for its fiber channel products -- adapters and hubs that provide higher-performance connections for computer networks. Emulex said that, if deferrals continued to mount, its fiscal third-quarter earnings could fall 3 to 5 cents short of its previous guidance of pro forma earnings of 25 cents per share. The company said third-quarter revenues could be sequentially flat at $69 million, compared with previously stated expectations of $79 million to $80 million. The company would still meet targets if the current level of deferrals does not worsen, executives said. Chief Financial Officer Mike Rockenbach said the company would have a better idea of its financial outlook in three to four weeks. Wall Street analysts' consensus expectations were already somewhat lower than the company's own guidance. On average, analysts were expecting the company to report a third-quarter profit of 23 cents per share on revenue of about $75.25 million, according to research firm First Call/Thomson Financial. A year ago it earned 10 cents a share on revenue of $36.5 million. The sell-off in Emulex extended to its closest rivals, as shares of QLogic Corp. (NasdaqNM:QLGC - news) and Brocade Communications Systems Inc. (NasdaqNM:BRCD - news), joined Emulex near the top of Nasdaq's net losers list. QLogic shares were off $21, or more than 30 percent, at $49-3/8, and Brocade shares were down $12-5/8, or more than 17 percent, at $61-1/2.