Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Emulex Board Unanimously Rejects Broadcom's $11.00 Per Share Offer

COSTA MESA, Calif., July 9, 2009 - Emulex Corporation (NYSE:ELX) today announced that its Board of Directors has responded to the revised offer by Broadcom Corporation (Nasdaq: BRCM) to acquire Emulex for $11.00 per share in cash, and unanimously rejected the offer. After a thorough review of the Broadcom revised offer with the assistance of its financial and legal advisors, Goldman Sachs & Co. and Gibson, Dunn & Crutcher LLP, respectively, the Board determined that the offer significantly undervalues Emulex's long-term prospects, is inadequate, and is not in the best interests of Emulex and its stockholders. The Board therefore recommends that Emulex stockholders not tender their shares into the offer. The Company also announced preliminary financial results for the fourth fiscal quarter ended June 28, 2009 at the high end of its guidance, and four new tier-one original equipment manufacturer (OEM) product design wins."

Throughout our review of Broadcom's offers, the Board has been focused first and foremost on serving the best interests of Emulex stockholders," said Paul Folino, Executive Chairman. "We unanimously believe Emulex will deliver significantly more value than Broadcom's revised offer through the Company's rapidly developing converged networking business and solid execution in our host server and embedded storage markets. While the Board is very enthusiastic about Emulex's future prospects and will continue to focus on executing the Company's current strategy, consistent with the Board's fiduciary duties we would of course give full consideration to a bona fide offer from any party that reflects the full value of the Company."

Jim McCluney, President and Chief Executive Officer, said, "Underscoring the success of our strategic initiatives, we recently secured two new tier-one 10Gb/s Ethernet OneConnect Converged Network Adapter design wins, adding to the twelve wins that we disclosed in May. In recent weeks, we also secured two new OEM design wins for our LightPulse Fibre Channel Host Bus Adapters. These new design wins further validate our projections of $600 million in revenue and $1.45 in non-GAAP earnings per share in fiscal year 2012, and reinforce the additional upside opportunities available to the Company. We are also pleased to announce today preliminary revenue and fully diluted EPS results for the fourth quarter that are at the high end of our guidance. We believe this solid performance demonstrates our ability to execute against our guidance.

"Emulex today announced that it preliminarily expects to report revenues of approximately $78 - $79 million for its fourth fiscal quarter ended June 28, 2009, compared to the range of $73 - $80 million projected in April 2009 during the Company's third quarter conference call. The Company preliminarily expects non-GAAP earnings per share for its fourth fiscal quarter to be at the high end of the prior guidance of $0.01 - $0.05 per diluted share. For more information on Emulex's fourth quarter results, please see a separate press release issued by the Company today.

Emulex will set forth details of the basis for the Board's recommendations regarding Broadcom's revised offer in an amendment to its Schedule 14D-9 to be filed with the Securities and Exchange Commission today. Stockholders with questions can contact Emulex's information agent, MacKenzie Partners, at 1-800-322-2885 or collect at 212-929-5500. Stockholders can also find more information at 
About Emulex

  • 1