Emulex Corp. (NYSE: ELX) missed its guidance on revenues for the quarter and offered lower guidance than expected for the current quarter in its earnings report today.
Emulex reported third-quarter revenue of $99 million, up 24 percent from a year ago, but just below its guidance of between $100 million and $102 million. Its income rose to $20.9 million, up 12 percent from last year, while EPS of $0.25 earnings per share rose 14 percent and hit Thompson's First Call estimate.
But guidance for the current quarter was also lower than expected. Emulex forecast sequential growth of between 1 percent and 4 percent, for revenue between $100 million and $103 million and EPS of up to $0.25. Analysts were looking for growth of between 2 percent and 5 percent, and EPS of $0.26.
Perhaps the lower guidance is due to product launches expected in the second half of the year. That could hurt sales in the current quarter as customers wait for the new product. "We're at a major expansion of our product line," CEO Paul Folino said on a conference call with analysts.
Overall, it wasnt a great quarter for HBA leaders Emulex and rival QLogic Corp. (Nasdaq: QLGC). In March, QLogic lowered its revenue forecast to about $128 million, instead of the $138 million to $141 million it projected during its January report (see Vitesse Links 6.5-Gig Backplanes). QLogic will announce its earnings Wednesday.
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