Emulex Reports Q4

COSTA MESA, Calif. -- Emulex Corporation
(NYSE:ELX) today announced results for its fourth fiscal quarter ended July 1, 2007.

Fourth Quarter Highlights

• Total revenues of $126.3 million, or a 5% sequential and a 28%
  year-over-year increase.
• Revenue from engineering services related to a pre-existing Aarohi
  Communications agreement of $3.8 million.
• GAAP gross margins of 61% and non-GAAP gross margins of 67%.
• GAAP operating income of $21.3 million, or 17% of revenue, and
  non-GAAP operating income of $37.4 million, or 30% of revenue.
• GAAP diluted EPS of $0.15 and non-GAAP diluted EPS of $0.34.
• Cash, cash equivalents and investments of $271.9 million.
• Inventory turnover of 6.8.
• Days Sales Outstanding (DSOs) of 36 days.
• Repurchase of 1.5 million shares using $32 million of cash.

Fiscal 2007 Highlights

• Total revenues of $470.2 million, or a 17% year-over-year increase.
• GAAP gross margins of 58% and non-GAAP gross margins of 65%.
• GAAP operating income of $44.2 million, or 9% of revenue, and
  non-GAAP operating income of $133.5 million, or 28% of revenue.
• GAAP diluted EPS of $0.34 and non-GAAP diluted EPS of $1.14.
• Repurchase of 3.6 million shares using $70 million of cash.

Financial Results

Fourth quarter revenues of $126.3 million, rose 5% sequentially from the third fiscal quarter and increased 28% year-over-year. Fourth quarter GAAP net income was $13.2 million, or $0.15 per diluted share, representing an increase in earnings per share of 15% sequentially, and compared to a net loss of $0.06 per share in the prior year's quarter.