Emulex Kicks Sand in Analysts’ Faces

Handily beating Wall Street analysts’ expectations, Costa Mesa-based Emulex Corp. on Thursday said it earned $3 million, or 39 cents a share, in the fiscal fourth quarter, compared with $200,000, or 3 cents a share, in the same period last year.

Emulex, which develops high-speed computer networking products, had been expected to earn 29 cents a share, according to a survey of analysts by First Call Corp.

Sales for the three months ended June 27 increased 46% to $20.5 million.

Last month, Emulex’s neighbor, rival and offspring, QLogic Corp., announced similarly impressive quarterly figures. Both companies develop products that connect computers and peripherals using an up-and-coming technology called fiber channel.

While shipments by Emulex of its emerging fiber-channel products grew 213%, the company’s traditional networking product sector declined 32% from a year ago.

For the fiscal year, Emulex posted a net income of $5.3 million, or 75 cents a share. For the previous year, the company posted a loss of $10.8 million, or $1.77 a share, including $12.5 million in consolidation charges from the closing of the company’s Puerto Rico manufacturing facility. Revenues rose 15% to $68.5 million.

The company also said Thursday that MTI Technology Corp. of Anaheim has agreed to use Emulex products for its computer storage systems.

Emulex shares rose Thursday by $9.38, or 10%, to $102.75. The company released its earnings report after the market closed.