Emulex Reports Q1

Emulex achieves 14% revenue growth over prior year

October 26, 2007

2 Min Read
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COSTA MESA, Calif. -- Emulex Corporation (NYSE:ELX) today announced results for its first fiscal quarter ended September 30, 2007.

First Quarter Highlights

  • Total net revenues of $117.1 million, an increase of 14% year-over-year and a 7% sequential decrease

  • Host Server Product net revenues of $88.8 million, or 76% of total net revenues

  • Embedded Storage Product net revenues of $28.0 million, or 24% of total net revenues

  • GAAP gross margin of 58% and non-GAAP gross margin of 66%

  • GAAP operating income of $12.5 million, or 11% of total net revenues, and non-GAAP operating income of $31.7 million, or 27% of net revenues

  • GAAP diluted EPS of $0.12 and non-GAAP diluted EPS of $0.27

  • Cash, cash equivalents and investments of $274.9 million

  • Inventory turnover of 9.2 times

  • Days Sales Outstanding (DSOs) of 40 days

  • Repurchase of 2.1 million shares using $40 million of cash

Financial Results

First quarter net revenues rose 14% year-over-year to $117.1 million but decreased 7% from the fourth quarter of fiscal 2007. First quarter GAAP net income was $10.2 million, or $0.12 per diluted share. GAAP net income per share decreased 29% from $0.17 per diluted share in the year ago period and 20% sequentially from $0.15 per diluted share in the fourth quarter. Non-GAAP net income for the first quarter, which excludes amortization of intangibles, stock-based compensation, and the impairment of an intangible asset, was $22.8 million, or $0.27 per diluted share. Non-GAAP net income per diluted share increased 8% compared to $0.25 per diluted share in the year ago period and decreased 21% sequentially compared to $0.34 per diluted share in the fourth quarter. Reconciliations between GAAP and non-GAAP results are included in the accompanying financial data.

Jim McCluney, CEO and President commented, "Coming in at the high end of our guidance range is a good way to start off fiscal 2008. Embedded Storage Product (ESP) revenues, which grew 78% year-over-year, drove total net revenue growth of 14% year-over-year for the first quarter.With 29 unannounced design wins, nearly half of which have yet to begin shipping, ESP is well positioned to deliver growth for the balance of the fiscal year. In addition, we were able to solidify the Host Server Product (HSP) market share that was gained in the first half of the calendar year with a strong performance in the typically soft summer quarter. HSP's results for the quarter were led by mezzanine cards for blade servers, which contributed 400% year-over-year growth to the top line," he added.

Emulex Corp.

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