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Emulex Drops Revenue Again

After a second straight quarter of revenue and income declines, Emulex Corp. (NYSE: ELX) executives say they are looking to accelerate their move into the emerging SMB market with entry-level switches and HBAs for blade servers.

Emulex reported revenue of $73.2 million today, which was at the low end of its guidance of $73 million to $76 million and below analysts consensus forecast of $74.5 million. It reported its net income of $9.5 million or earnings per share of $0.11, beating its guidance of $0.09-$0.10 and the consensus forecast of $0.10.

The HBA vendor’s revenue and earnings were down significantly from year-over-year and quarter-over-quarter standpoints. Emulex posted revenue of $86.4 million and EPS of $0.19 last quarter and $84.6 million and $0.24 last year.

Today’s results represent a second straight quarter of declines. In the previous quarter, Emulex laid off 5 percent of its workforce after disappointing results (see Emulex Cuts Guidance, Jobs).

CEO Paul Folino blames the 15 percent sequential revenue drop last quarter on a shift of buying patterns by one of its OEMs -- believed to be EMC Corp. (NYSE: EMC) -- that changed the way HBA revenue was counted.

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