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Trends like virtualization, ongoing migration to multiprotocol tiered storage, and the arrival of higher-bandwidth Fibre Channel formed a subtext to Emulex's end-of-quarter and end-of-year financial report last night. (See Emulex Reports Q4.)
The vendor, which alongside QLogic holds a leading share of the worldwide Fibre Channel HBA market, predicts ongoing strength in OEM sales of blade server cards and HBAs, including a ramp-up to 8-Gbit/s starting in the first half of 2008. (Emulex execs expect that move to be aided by the vendor's offer of 8-Gbit/s wares, which were unveiled this week.)
The execs noted that in the future, reduced server sales, which analysts have predicted as the byproduct of increased virtualization, will be offset by the vendor's offering of embedded switches and controllers for SAN and NAS gear.
"We actually see virtualized servers creating pretty good opportunities for our business," said Emulex EVP of worldwide marketing Mike Smith. Virtualized servers typically have five times the level of SAN attachment that non-virtualizated servers do, he said.
Emulex reported quarterly revenues of $126.3 million, up 5 percent sequentially and 28 percent year-over-year. Of that, 74 percent, or $93.5 million in revenue, came from host server products, including HBAs, mezzanine cards for blade servers, and server ASICs. This segment was up 7 percent sequentially and 11 percent year-over-year.
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