Shares of Emulex were down 20.5 percent, to $19.39, in midday trading amid a generally down market.
Also hurting the stock today were two downgrades by Wall Street analyst firms. RBC Capital Markets downgraded Emulex to Underperform from Sector Perform; and Thomas Weisel Partners changed its rating from Peer Perform to Underperform on the expectation of lower revenue growth.
"Our analysis of HBA market share gain exhaustion supports a cautious view of Emulex's future HBA revenue growth vis--vis investor expectations, and successful execution in new segments is far from certain," wrote Thomas Weisel analyst Jason Ader in a research note today.
Emulex reported revenues of $79.6 million for the quarter ended March 30, 2003, up 4 percent sequentially. It posted a net loss of $248,000, essentially breaking even, in line with Wall Street expectations. Emulex executives noted that it was the company's sixth consecutive quarter of growth.