Emulex Reports Earnings update from January 2007

Emulex Corporation announced results for its second fiscal quarter ended December 31, 2006

January 26, 2007

1 Min Read
Network Computing logo

COSTA MESA, Calif. -- Emulex Corporation (NYSE:ELX - News) today announced results for its second fiscal quarter ended December 31, 2006.

Second Quarter Financial Highlights

-- Revenues of $121.4 million, a 19% sequential increase which exceeded the October guidance of $115-$119 million
-- GAAP gross margins of 54% and non-GAAP gross margins of 62%. Both GAAP and non-GAAP gross margins reflect an excess and obsolete inventory charge of approximately $2.5 million against older generation multi-chip 2Gb/s Host Server Products due to expected demand transition to single chip 2Gb/s and 4Gb/s products

-- GAAP net loss of $10.1 million and non-GAAP net income of $24.9 million or 21% of revenue
-- GAAP net loss per diluted share of $0.12 and non-GAAP net income per diluted share of $0.27
-- Inventories of $25.3 million, and inventory turns of 8.8
-- Cash, and investments at the end of the quarter totaled $269 million after the cost of completing the acquisition of Sierra Logic and retiring all of the $236 million of previously outstanding convertible debt
-- Emulex completed the acquisition of Sierra Logic using approximately $162 million in cash for the purchase of all common and preferred stock, of which $24 million is currently held in escrow

GAAP results include an in-process R&D charge of approximately $22 million associated with the acquisition of Sierra Logic in October 2006 based on our preliminary purchase price allocation.

Emulex Corp.

SUBSCRIBE TO OUR NEWSLETTER
Stay informed! Sign up to get expert advice and insight delivered direct to your inbox

You May Also Like


More Insights