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Emulex Cuts Guidance, Jobs

Coming off one disappointing quarter with another one expected, Emulex Corp. (NYSE: ELX) announced a small layoff along with its earnings report today.

Emulex announced revenues and net income that slightly beat its revised guidance issued last June but fell way below the forecast it gave last March (see Emulex Cuts Earnings Forecast and Emulex Hits the Deck). Today it reported net income of $15.9 million, or earnings per share of $0.19, on revenue of $86.4 million. On June 30, Emulex projected EPS of $0.18 and revenue between $85 million and $86 million -- a far cry from guidance last March of $0.25 and $100 million to $103 million. The consensus analysts' earnings estimate was $0.18 on $86.33 million in revenue, according to Reuters.

The companys revenues grew 6 percent from the same quarter last year but dropped 13 percent from the previous quarter. EPS fell 17 percent from last year and 24 percent sequentially.

In a conference call with analysts to discuss earnings, Emulex CEO Paul Folino said the company laid off 5 percent of its staff this week, or about 26 jobs. Company officials say they will add engineering staff

Perhaps the worst news for Emulex today was its guidance for the current quarter. The company forecast revenue in the range of $73 million to $76 million and EPS of $0.09 to $0.10. That’s down a bit from its already lowered guidance of $75 million to $76 million, and below the $84.6 million and $0.25 it posted in the same quarter last year. The consensus guidance estimate was $0.14 and $77.4 million.

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