Emulex Reports Q1

COSTA MESA, Calif. -- Emulex Corporation (NYSE:ELX) today announced results for its first fiscal quarter ended September 30, 2007.

First Quarter Highlights

• Total net revenues of $117.1 million, an increase of 14%
  year-over-year and a 7% sequential decrease
• Host Server Product net revenues of $88.8 million, or 76% of total
  net revenues
• Embedded Storage Product net revenues of $28.0 million, or 24% of
  total net revenues
• GAAP gross margin of 58% and non-GAAP gross margin of 66%
• GAAP operating income of $12.5 million, or 11% of total net
  revenues, and non-GAAP operating income of $31.7 million, or 27% of
  net revenues
• GAAP diluted EPS of $0.12 and non-GAAP diluted EPS of $0.27
• Cash, cash equivalents and investments of $274.9 million
• Inventory turnover of 9.2 times
• Days Sales Outstanding (DSOs) of 40 days
• Repurchase of 2.1 million shares using $40 million of cash

Financial Results

First quarter net revenues rose 14% year-over-year to $117.1 million but decreased 7% from the fourth quarter of fiscal 2007. First quarter GAAP net income was $10.2 million, or $0.12 per diluted share. GAAP net income per share decreased 29% from $0.17 per diluted share in the year ago period and 20% sequentially from $0.15 per diluted share in the fourth quarter. Non-GAAP net income for the first quarter, which excludes amortization of intangibles, stock-based compensation, and the impairment of an intangible asset, was $22.8 million, or $0.27 per diluted share. Non-GAAP net income per diluted share increased 8% compared to $0.25 per diluted share in the year ago period and decreased 21% sequentially compared to $0.34 per diluted share in the fourth quarter. Reconciliations between GAAP and non-GAAP results are included in the accompanying financial data.