Emulex Q1 revenues decrease 23% to $85.5m

Exceeds guidance of $78 to$82m

Emulex has reported net revenues of $85.5m for the first quarter of 2010, a sequential increase of 8% and a decrease of 23% compared to the same quarter of last year. The total net revenues exceeded guidance of $78 to $82m.

For the quarter, Host Server Products (HSP) accounted for 75% of net revenues. 8Gb/s net revenues increased 66% sequentially, accounting for over 20% of Host Server Product (HSP) net revenues during the quarter. Converged Network Adapter (CNA) net revenues exceeded expectations with growth of over 160% sequentially and Embedded Storage Products (ESP) accounted for 25% of total net revenues.

Operating loss was $6.18m for the quarter compared to operating income of $9.15m in the prior year quarter. For the quarter the company posted a net income of $3.83m, or $0.05 per diluted share compared to net income $7.5m, or $0.09 per diluted share for the first quarter of 2009.

Jim McCluney, president and CEO of Emulex, said: In addition to exceeding our first quarter corporate financial goals for our core business, we delivered meaningful proof points supporting our commitment to be a market leader in converged networks.

Our universal converged networking strategy using enhanced 10Gb/s ethernet to merge LAN (Local Area Network) and SAN (Storage Area Network) data traffic is changing the way our customers and our competitors think about the future of connectivity in data centres.”

For the second quarter of fiscal 2010, Emulex has forecasted total net revenues in the range of $88-$92m. The company expects a loss per diluted share of $0.03 to $0.05 in the second quarter.

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