Emulex Reports Second Quarter Results
"Second quarter shipments of fibre channel host bus adapters andhubs rose 61 percent from a year ago, reaching record levels for thesecond quarter in a row,"
"As a result of these trends, fibre channel expanded to comprise
a majority of total Emulex sales, reaching just over 50 percent of
revenue in the second quarter, up from 39 percent in the first
quarter.
During the second quarter, the company also announced that
Michael E. Smith, formerly the marketing manager for Fibre Channel
Products at Adaptec Inc., joined Emulex as its senior director of
Fibre Channel Marketing. [Ed. hey ADPT- nice call]
COSTA MESA, Calif.--(BUSINESS WIRE)--Jan. 28, 1999--Emulex Corp.
(Nasdaq:EMLX), a leader in fibre channel technology and products,
Thursday announced results for its second fiscal quarter ended
Dec. 27, 1998.
Revenues totaled $15.7 million, compared with $15.5 million
reported for the same quarter a year ago. Results for the second
quarters of fiscal 1998 and 1999 each included unusual items,
including a net charge in fiscal 1999 and a benefit in fiscal 1998,
which are detailed separately below. Including these unusual items,
net income for the second quarter of fiscal 1999 amounted to $440,000,
or $0.07 per share on a diluted basis, compared with net income of
$1.1 million, or $0.18 per share on a diluted basis, for the same
quarter a year ago. Excluding these unusual items, net income for the
second quarter of fiscal 1999 would have been $725,000, or $0.11 per
share, compared with net income of $920,000, or $0.15 per share on a
diluted basis, for the same quarter a year ago.
"Second quarter shipments of fibre channel host bus adapters and
hubs rose 61 percent from a year ago, reaching record levels for the
second quarter in a row," stated Paul F. Folino, president and chief
executive officer.
"In contrast, Emulex's network access and printer server sectors
continued to mature, and collectively declined 8 percent on a
sequential basis. This decline in our traditional product sectors was
offset by escalating demand for the company's flagship LightPulse(TM)
fibre channel product line, which expanded 45 percent sequentially and
propelled sequential growth for total revenue to 12 percent.
"As a result of these trends, fibre channel expanded to comprise
a majority of total Emulex sales, reaching just over 50 percent of
revenue in the second quarter, up from 39 percent in the first
quarter. This fibre channel momentum enabled Emulex to sequentially
expand diluted earnings per share by 57 percent, from $0.07 to $0.11
per share, excluding the unusual items. We continue to expect that the
company's business will become increasingly driven by the fibre
channel sector in upcoming quarters.
"Emulex's fibre channel OEM relationships continued to develop
during the second quarter as several existing OEMs returned to Emulex
to provide the fibre channel connectivity solution for their
new-generation servers and storage systems."
In the second quarter, Emulex announced an agreement with Sequent
Computer Systems Inc., which again selected Emulex for gigabit fibre
channel connectivity for its NUMA-QTM 2000 high end systems and
NUMACenter framework for data center applications. The company also
announced that Groupe Bull selected and qualified the Emulex
LightPulse(TM) LP7000E PCI host adapter as the fibre channel solution
that Bull will offer with their Escala servers.
In addition, the CLARiiON Advanced Storage Division of Data
General Corp., the world's leading supplier of open RAID-based full
fibre channel disk arrays, selected Emulex fibre channel adapters to
provide connectivity for its FC5000 Series fibre channel disk array
family. Furthermore, Emulex announced that LSI Logic is integrating
the Emulex LightPulse LP7000E fibre channel adapter as an option for
its line of MetaStor(TM) fibre channel server-attached storage
solutions.
During the second quarter, the company also announced that
Michael E. Smith, formerly the marketing manager for Fibre Channel
Products at Adaptec Inc., joined Emulex as its senior director of
Fibre Channel Marketing.
Shortly after the close of the second quarter, Emulex announced
the LightPulse(TM) LP8000 fibre channel host adapter, the latest in
its family of high-performance host adapters designed to support
mission-critical enterprise applications. The LP8000 offers a
groundbreaking combination of a 64-bit PCI interface, full-duplex
fibre channel capability, the ability to drive up to 100km cabling,
and support for all fibre channel topologies, classes 2 and 3, as well
as both F_Port and FL_Port connections to enable full fabric
capability. Running full duplex, the LP8000 has been measured at
150MB/s, and is capable of delivering more than 30,000 I/Os per second
from a single adapter in the latest Xeon-based server running Windows
NT.
"As the leading supplier of full-duplex PCI gigabit fibre channel
adapters, Emulex is pleased to be continuing our tradition of fibre
channel innovation," stated Folino.
For the six months ended December 1998, Emulex revenues totaled
$29.8 million, compared with $30.5 million reported a year ago.
Including the aforementioned unusual items, net income for the first
six months of fiscal 1999 amounted to $862,000, or $0.13 per share on
a diluted basis, compared with $1.7 million, or $0.27 per share on a
diluted basis for the same period a year ago. Excluding unusual items,
net income would have been $1.1 million, or $0.17 per share on a
diluted basis in the first half of fiscal 1999, compared with $1.5
million, or $0.24 per share on a diluted basis for the same period a
year ago.
Emulex Corp. is a leading designer of high-performance network
connectivity products including fibre channel, printer server and
network access products. The company's hardware and software-based
networking solutions improve communication in computer networks and
enhance data flow between computers and peripherals. Fibre channel is
a high-performance ANSI standard interface that is supported by the
120+ worldwide member Fibre Channel Association that includes Sun,
Hewlett-Packard and Seagate.
As a leading developer and supplier of fibre channel technology,
Emulex's fibre channel devices support all implementations of the
fibre channel standard, including arbitrated loop, switched fabric and
point-to-point topologies. The company markets to OEMs and end users
through its own worldwide selling organization, as well as two-tier
distribution partners.
Corporate headquarters are located in Costa Mesa. News releases
and other information about Emulex are available via Emulex's World
Wide Web address at emulex.com.
...I/O by Emulex(TM)
Financial notes:
Net income for the three months ended Dec. 27, 1998, included a
gain of $777,000 resulting from the sale of the company's former
manufacturing facility in Dorado, Puerto Rico, and additional
consolidation charges related to severance and other asset impairment
charges of $1,094,000 related to the closure of the company's Puerto
Rican manufacturing facility announced in the third quarter of fiscal
1998. Excluding these items, net of tax, net income would have been
$725,000, or $0.11 per share on a diluted basis.
Net income for the three months ended Dec. 28, 1997, included an
income tax benefit of $188,000 related to a recovery under a tax
sharing agreement with a former subsidiary of the company. Excluding
this item, net income would have been $920,000, or $0.15 per share on
a diluted basis.
Net income for the six months ended Dec. 27, 1998, included a
gain of $777,000 resulting from the sale of the company's former
manufacturing facility in Dorado, Puerto Rico, and additional
consolidation charges related to severance and other asset impairment
charges of $1,094,000 related to the closure of the Company's Puerto
Rican manufacturing facility announced in the third quarter of fiscal
1998. Excluding these items, net of tax, net income would have been
$1,147,000, or $0.17 per share on a diluted basis.
Net income for the six months ended Dec. 28, 1997, included
an income tax benefit of $188,000 related to a recovery under a tax
sharing agreement with a former subsidiary of the company. Excluding
this item, net income would have been $1,529,000, or $0.24 per share
on a diluted basis.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: With the exception of historical information, the
statements set forth above include forward-looking statements that
involve risk and uncertainties. The company wishes to caution readers
that a number of important factors could cause actual results to
differ materially from those in the forward-looking statements. Those
factors include the following: the fact that the company's markets are
characterized by rapidly changing technology, evolving industry
standards and frequent introductions of new products and enhancements,
and the company's ability to respond to such changes; maturation in
the network access server and printer server product sectors; the fact
that the fibre channel market is at an early stage of development; the
highly competitive nature of the markets for the company's products;
the company's ability to attract and retain skilled personnel; the
company's reliance on third party suppliers for components used in the
company's products and on manufacturing subcontractors that assemble
and distribute the company's products; and the company's reliance on
certain OEMs, distributors and key customers. These and other factors
which could cause actual results to differ materially from those in
the forward-looking statements are also discussed in the company's
filings with the Securities and Exchange Commission, including its
recent filings on Form 10-K and Form 10-Q.
This news release refers to various products and companies by
their trade names. In most, if not all, cases these designations are
claimed as trademarks or registered trademarks by their respective
companies. |
