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Technology Stocks : Son of SAN - Storage Networking Technologies -- Ignore unavailable to you. Want to Upgrade?

To: J Fieb who wrote (4123)	10/21/2001 11:56:08 AM
From: J Fieb	Respond to of 4808

Emulex Boosts Everyone Discuss this story > Fibre Channel HBA maker, Emulex Corp. (Nasdaq: EMLX - message board) surged Friday on the strength of its quarterly earnings report -- and took its closest competitors and allies in the sector along for the ride. Despite a downgrade by Wells Fargo Van Kasper from a Strong Buy to a Buy rating on Friday, Emulex’s stock eventually closed up $4.60, or 22.9 percent, to $24.65, on the day. The company posted a steep net loss for its fiscal first quarter Thursday, but operating earnings of $7.5 million still crept ahead of forecasts. The results were a cent per share ahead of the $0.08 cents forecast by analysts surveyed by First Call. For the first quarter ended in September, pro forma net income -- including deferred employee compensation, acquisition write-offs, and a one-time inventory writedown -- Emulex reported a net loss of $40 million, or $0.49 a share, compared with $12.9 million loss, or $0.17 cents, for the same quarter a year earlier. Excluding the one-time items, operating net income dropped to $7.5 million, down $0.09 per diluted share. Revenues slipped to $52.7 million, down 5 percent from the $55.5 million reported for the same quarter a year ago. The news appeared to have a positive knock-on effect for other players in this sector, too, notably FC switch maker QLogic Corp. (Nasdaq: QLGC - message board), which swung up 6.5 percent to close at $38.50. Other talk on the Street Friday suggested that QLogic might be about to close a deal with Dell Computer Corp. (Nasdaq: DELL - message board) for low-end Fibre Channel switches, which, if true, would be a shot across the bow of Brocade Communications Systems Inc. (Nasdaq: BRCD - message board). Neither company would comment on the rumors. Gadzoox Networks Inc. (Nasdaq: ZOOX - message board) closed up 13.64% at 1.25; McData Corp. (Nasdaq: MCDT - message board) finished up 4.73% at 13.51; Brocade ended the day up 9.73% at 24.59; and EMC Corp. (NYSE: EMC - message board) was up a pinch at 2.4% to close at 11.51. The only company excluded from the good news was Inrange Networks (Nasdaq: INRG - message board) which ended Friday down 6.45% at 5.22 -- a drop attributed to poor results (see Inrange Points Finger for Q3 Loss). — Jo Maitland, Senior Editor, Byte and Switch byteandswitch.com