News

posted on 11 July 2008 03:30

Emulex has released preliminary Q4 fy08 results with a $7-$10 million undershoot of its previous revenue guidance for the quarter.

It expects to report revenues of approximately $111-$113 million for the fourth fiscal quarter ended June 29, 2008, compared to the range of $118-$123 million previously projected in April 2008. The actual earnings will be reported on August 7th.

Jim McCluney, president and CEO, said: "While we were able to deliver our 10th consecutive year of top line revenue growth, we are clearly disappointed with the results of the fourth quarter. After a record third quarter we experienced a steeper decline in our Embedded Storage Products than anticipated. This weakness in ESP was combined with lower than anticipated revenues in the Host Server Products primarily through the distribution channel which historically has been strong at the end of the quarter. ... While the near term business environment is more challenging than we would like, the Company remains financially healthy and we are very focused on delivering stronger results in fiscal 2009."

QLogic recently upgraded its expections for its equivalent quarter and looks to have gained some market share from Emulex. It has an InfiniBand product line doing well and may be better positioned in the blade server market.

Emulex host server products include host bus adapters (HBAs) and ASICs. Embedded storage products include InSpeed array switches and I/O controllers.

^{[Paul Roberts, news editor.]}