Emulex Swings to Profit on Strong Revenue

Emulex Corp. moved to a profit in its fiscal fourth quarter as the company’s results surpassed expectations on stronger sales for its adapters used to link data storage networks.

The Costa Mesa maker of storage networking infrastructure products said net income rose to $25.3 million, or 28 cents a share, contrasted with a loss of $572.9 million, or $6.97, a year earlier. Excluding certain items, the company earned $26.6 million, or 30 cents a share, in the period ended July 3.

Sales in the quarter increased 25% to $108.2 million.

The results surpassed Wall Street projections for earnings of 24 cents a share on revenue of $105.8 million, according to analysts surveyed by Thomson Financial. The strong showing pushed Emulex shares up $1.65, or 9%, to $19.30 in after-hours activity. They rose 15 cents to $17.65 in regular trading.

Looking ahead, Emulex projects first-quarter profit of 16 cents to 18 cents a share -- or 26 cents to 28 cents excluding certain items. It forecasts revenue of $106 million to $110 million. Analysts expect per-share earnings of 24 cents on revenue of $106.1 million.