News

posted on 25 April 2008 09:58

Fibre Channel storage networking end-point supplier Emulex reported sharply higher profit from only slightly higher revenues for its third fiscal 2008 quarter.

Net revenue was up only 6 percent at $127.8 million compared to the year-ago quarter's $120 million. However net income rose 36 percent over the same period from $11.4 million ($0.13/share) to $15.5 million ($0.19 share).

Jim McCluney, Emulex' president and CEO, said: "Our third quarter results saw our Embedded Storage Products achieve revenues in excess of $42 million or one third of total revenues. Our continued focus on
improving the supply chain helped deliver solid results for the third quarter. With inventory turns at 12.2, and our solid gross margin performance, our third quarter results once again demonstrated the company's commitment to balancing revenue performance and earnings growth."

Although the company is on track to its tenth successive year of revenue growth its Q4 fy08 outlook was lower than analysts expected at $118 - 123 million and earnings per share of $0.24 - 0.27.

The company is investing in converged network adaptors (CNA) and should be well-placed to benefit from any substitution of its bread-and-butter Fibre Channel host bus adapter (HBA) product line by CNAs if customers adopt the FCoE (Fibre Channel over Ethernet) protocol.

^{[Paul Roberts, news editor.]}