EXHIBIT 99.1

FOR IMMEDIATE RELEASE

Investor Contact: Michael J. Rockenbach	Press Contact: Robin Austin
Chief Financial Officer	Sr. Manager, Public Relations
(714) 885-3695	(714) 885-3462

EMULEX REPORTS FIRST QUARTER RESULTS

     COSTA MESA, Calif., October 21, 2004 — Emulex Corporation (NYSE:ELX), the market leader in Fibre Channel host bus adapters (HBAs) and a leading supplier of intelligent building blocks for next generation storage networking systems, today announced results for its first fiscal quarter ended September 26, 2004.

First Quarter Highlights

• Revenues of $73.2 million, compared to guidance of $73-$76 million. This was a 13% decrease from a year ago, reflecting the impact of a previously announced OEM business model transition that is now largely complete.

• Non-GAAP diluted EPS of $0.11, and GAAP diluted EPS of $0.17, compared to non-GAAP guidance of $0.09-$0.10 and GAAP guidance of $0.08-$0.09

• Gross margin of 60%

• Non-GAAP operating margin of 19% and GAAP operating margin of 12%

• Repurchase of $153 million in face value of Emulex’s 0.25% convertible subordinated notes at a discount. This resulted in a pre-tax gain of $13.1 million which is not included in non-GAAP results.

• A 21% sequential reduction in inventory levels to $25.0 million and an improvement in turns from 4.1 to 4.7

• Increase of $51.4 million in cash and investments, net of debt, over fourth quarter levels, to $182 million

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Emulex Corporation FY ‘05 First Quarter Results
October 21, 2004
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Financial Results

     First quarter revenues, essentially all of which were comprised of Fibre Channel products, declined 15% sequentially from the fourth fiscal quarter to $73.2 million. This was primarily due to the previously-announced shift from a distribution fulfillment model to a hub inventory model at one of Emulex’s key OEMs. While actual end-user demand for HBA products was unaffected by this transition, the interim financial impact was a reduction in first quarter fiscal 2005 HBA revenue below actual demand levels as distributor stocking inventory of Emulex HBAs was sold. Storage switching solutions, however, grew to more than 15% of first quarter net revenue, expanding nearly 20% sequentially. First quarter non-GAAP net income declined by 53% from the comparable year-ago results to $9.5 million, or $0.11 per diluted share. First quarter GAAP net income, including charges associated with the previous acquisitions and non-recurring benefits associated with the repurchase of notes at a discount and additional recovery in insurance proceeds associated with settlement of shareholder litigation, amounted to $14.3 million, or $0.17 per diluted share. A reconciliation between GAAP and non-GAAP results is included in the accompanying financial data.

     Paul Folino, Emulex Chairman and CEO, stated, “While cross currents in our OEM customer base are impacting our HBA revenue, we made notable strategic progress in the HBA sector during the quarter, capturing yet another tier one OEM design win for our next generation 4 gigabit per second HBA, logging more design wins in the blade server market, strengthening our position in the Linux and Windows sectors, and working closely with Brocade to offer simplified installation and management tools for our combined solution set of fabric switches and HBAs for both the enterprise and SMB markets. In addition, our InSpeed storage switching solutions are continuing to gain momentum in the market as we expanded our installed base to 3 million ports in the first quarter. We added Engenio to our list of announced InSpeed embedded storage switch OEMs, and launched our Entry Level SAN Storage Switch product line with a marquee list of OEMs for this product family, including IBM, NEC and Apple. While we remain in a period of high engineering investment as we pursue broader market opportunities that will fuel future growth, the enthusiastic customer response is reinforcing our commitment to expanding and diversifying our addressable markets.”

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Emulex Corporation FY ‘05 First Quarter Results
October 21, 2004
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Business Outlook

     Although actual results may vary depending on a variety of factors, many of which are outside Emulex’s control, Emulex is providing guidance for its second fiscal quarter ending December 2004. Beginning in December 2004, earnings per share guidance will be impacted by approximately one cent per share to reflect additional shares outstanding under the assumption that EITF 04-8 will be effective. Emulex is budgeting for second quarter revenue in a range of $81-$85 million and non-GAAP earnings per share of $0.13-$0.15. On a GAAP basis, Emulex expects diluted first quarter EPS of $0.08-$0.10 per share, reflecting approximately $0.05 per share in expected GAAP charges arising primarily from amortization of intangibles and deferred stock-based compensation.

Webcast Information

     Emulex will host a webcast today at 2:00 p.m. Pacific time to discuss the financial results in detail. The webcast may be accessed live via the home page of the Emulex website at www.emulex.com. During the call, Emulex will discuss details of the first fiscal quarter financial results. A replay of the webcast will be available in the audio archive section of the investor relations page of the Emulex website. In addition, a replay of the quarterly conference call will be available for 48 hours by calling (888) 203-1112— and using the passcode 841082.

About Emulex

     Emulex Corporation is the world leader in Fibre Channel HBAs and delivers a broad range of intelligent building blocks for next generation storage networking systems. Emulex ranked number 16 in the Deloitte 2004 Technology Fast 50 and most recently received recognition as one of Forbes 200 Best Small Companies.

     The world’s leading server and storage providers rely on Emulex HBAs, embedded storage switching and I/O controller products to build reliable, scalable and high performance storage solutions. The Emulex award-winning product families, including its LightPulse™ HBAs and InSpeed™ embedded storage switching products, are based on internally developed ASIC, firmware and software technologies, and offer customers high performance, scalability, flexibility and reduced total cost of ownership. The company’s products have been selected by the world’s leading server and storage providers, including Dell, EMC, Fujitsu Ltd., Fujitsu Siemens, Bull, HP, Hitachi Data Systems, IBM, NEC, Network Appliance, Quantum Corp., StorageTek, Sun Microsystems, Unisys and Xyratex.

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Emulex Corporation FY ‘05 First Quarter Results
October 21, 2004
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In addition, Emulex includes industry leaders Brocade, Computer Associates, Intel, McDATA, Microsoft and VERITAS among its strategic partners. Corporate headquarters are located in Costa Mesa, California. News releases and other information about Emulex Corporation are available at http://www.emulex.com.

EMULEX We network storage

Note Regarding Non-GAAP Financial Information. The non-GAAP financial information included in this press release is not prepared in accordance with GAAP as it excludes subsequent benefits related to an inventory charge, impairment charges, gains or losses on the repurchase of convertible subordinated notes and litigation settlements, as well as charges relating to the amortization of stock-based compensation and in-process research and development charges. The projected non-GAAP financial information also excludes any acquisition-related charges associated with the acquisitions of Giganet, Vixel and the technology assets of Trebia Networks. Management believes that the presentation of Non-GAAP information may provide useful information to investors because Emulex has historically provided this information and understands that some investors consider it useful in evaluating Emulex’s core business. Management also uses this non-GAAP information, along with the GAAP information, in evaluating Emulex’s business for these purposes. The non-GAAP results should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP or other pro forma measures used by other companies.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above, including, without limitation, those contained in the discussion of “Business Outlook” above, contain forward-looking statements that involve risk and uncertainties. We expressly disclaim any obligation or undertaking to release publicly any updates or changes to these forward-looking statements that may be made to reflect any future events or circumstances. The company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. The fact that the economy generally, and the technology and storage segments specifically, have been in a state of uncertainty making it difficult to determine if past experience is a good guide to the future and making it impossible to determine if markets will grow or shrink in the short term. The Company’s results have been significantly impacted by a widespread slowdown in technology investment that has also pressured the storage networking market that is the mainstay of the Company’s business. A continued downturn in information technology spending could adversely affect the Company’s revenues and results of operations. As a result of this uncertainty, the Company is unable to predict with any accuracy what future results might be. Other factors affecting these forward-looking statements include, but are not limited to, the following: slower than expected growth of the storage networking market or the failure of the Company’s OEM customers to successfully incorporate the Company’s products into their systems; the Company’s dependence on a limited number of customers and the effects of the loss of, or decrease or delays in orders by, any such customers, or the failure of such customers to make payments; the emergence of new or stronger competitors as a result of consolidation movements in the market; the timing and market acceptance of the Company’s or the Company’s OEM customers’ new or enhanced products; the variability in the level of the Company’s backlog and the variable booking patterns of the Company’s customers; the effects of terrorist activities, natural disasters and resulting political or economic instability; the highly competitive nature of the markets for the Company’s products as well as pricing pressures that may result from such competitive conditions; the Company’s ability and the ability of the Company’s OEM customers to keep pace with the rapid technological changes in the Company’s industry and gain market acceptance for new products and technologies; the effect of rapid migration of customers towards newer, lowest cost product platforms; possible transitions from board level to application specific computer chip solutions for selected applications; a shift in unit product mix from higher-end to lower-end products; a decrease in the average unit selling prices or an increase in the manufactured cost of the Company’s products; delays in product development; the Company’s reliance on third-party suppliers and subcontractors for components and assembly; any inadequacy of the Company’s intellectual property protection or the potential for third-party claims of infringement; the Company’s ability to attract and retain key technical personnel; the Company’s dependence on foreign sales; the effect of acquisitions; impairment charges; and changes in tax rates or changes in accounting standards, including changes in the accounting treatment of employee stock options and contingent convertible debt. These and other factors which could cause actual results to differ materially from those in the forward-looking statements are discussed in the company’s filing s with the Securities and Exchange Commission, including its recent filings on Forms 8-K, 10-K and 10-Q, under the caption “Risk Factors.”

This news release refers to various products and companies by their trade names. In most, if not all, cases these designations are claimed as trademarks or registered trademarks by their respective companies.

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Emulex Corporation FY ‘05 First Quarter Results
October 21, 2004
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EMULEX CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)

	Three Months Ended
	September 26,			September 28,
	2004			2003
Net revenues	$	73,225		$	84,577
Cost of sales		29,246			28,327
Gross profit		43,979			56,250
Operating expenses:
Engineering and development		20,197			16,344
Selling and marketing		7,424			4,602
General and administrative		(421	)		3,657
Impairment of goodwill		1,793			—
Amortization of other intangibles		6,547			1,450
Total operating expenses		35,540			26,053
Operating income		8,439			30,197
Nonoperating income:
Interest income		3,034			2,498
Interest expense		(1,347	)		(1,033	)
Gain on repurchase of convertible subordinated notes		13,090			4,665
Other income (expense), net		(10	)		106
Total nonoperating income		14,767			6,236
Income before income taxes		23,206			36,433
Income tax provision		8,907			13,845
Net income	$	14,299		$	22,588
Net income per share:
Basic	$	0.17		$	0.27
Diluted	$	0.17		$	0.27
Number of shares used in per share computations:
Basic		82,561			82,541
Diluted		83,788			87,472

The interest expense adjustment, net of tax, to the Company’s GAAP diluted per share calculation due to the dilutive effect of its 1.75% convertible subordinated notes was $64 and $640 for the three months ended September 26, 2004, and September 28, 2003, respectively.

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October 21, 2004
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The reconciliation of the non-GAAP net income with the Company’s net income determined under GAAP is presented in the following table.

EMULEX CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP Net Income to Non-GAAP Net Income
(in thousands — unaudited)

	Three Months Ended
	September 26,			September 28,
	2004			2003
GAAP net income, as presented above	$	14,299		$	22,588
Items excluded from GAAP net income to calculate non-GAAP net income:
Subsequent benefit related to the excess and obsolete inventory charge, excluded from cost of sales (1)		—			(1,808	)
Amortization of deferred stock-based compensation associated with the acquisition of Vixel and Giganet, as follows:
Excluded from engineering and development		523			410
Excluded from selling and marketing		239			145
Excluded from general and administrative		485			37
Excluded from cost of sales		38			4
Amortization of intangibles, excluded from operating expenses		6,547			1,450
Impairment of goodwill, excluded from operating expenses(2)		1,793			—
Insurance recovery and $315 of related interest associated with settlement of securities class action and derivative lawsuits, excluded from general and administrative and interest income		(4,714	)		—
Net gain on repurchase of convertible subordinated notes excluded from nonoperating income(3)		(13,090	)		(4,665	)
Income tax effect of above items excluded from the income tax provision		3,369			1,909
Impact on net income		(4,810	)		(2,518	)
Non-GAAP net income	$	9,489		$	20,070

(1)	Excess and obsolete inventory charge. Starting in late September 2001, some of Emulex’s major customers made announcements that general economic conditions, exacerbated by the increase in economic uncertainty in the aftermath of the terrorist events of September 11, 2001, were having a negative impact on their financial results. The announcements made, and forecasts received, indicated deteriorating demand for the Company’s one gigabit per second (Gbps) products as these customers were expected to migrate to two Gbps products for future purchases. In order to provide meaningful comparisons of operating results, any subsequent consumption of these previously impaired products is excluded.
(2)	Impairment of goodwill. In connection with the preparation of Vixel Corporation’s tax return in the first quarter of fiscal 2005, the Company revised estimates and discovered errors related to the deferred tax assets of Vixel Corporation (acquired in November 2004). As a result, the Company recorded a $1.8 million impairment of goodwill in the first quarter of fiscal 2005. Had these items been recorded in fiscal 2004, the Company’s net loss would have been $1.8 million higher, or $534.1 million, instead of $532.3 million. The Company does not believe that this $1.8 million impairment of goodwill is material to fiscal 2004 or will be material to fiscal 2005 operations or financial results. Excluding this adjustment, net income for the first quarter of fiscal 2005 would have been $16.1 million.
(3)	Net gain on repurchase of convertible subordinated notes. In the three months ended September 26, 2004, Emulex repurchased $153.0 million in face value of its 0.25% convertible subordinated notes at a discount, resulting in a pre-tax gain of $13.1 million. In the three months ended September 28, 2003, Emulex repurchased $93.9 million in face value of its 1.75% convertible subordinated notes at a discount, resulting in a pre-tax gain of $4.7 million.

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Emulex Corporation FY ‘05 First Quarter Results
October 21, 2004
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The non-GAAP financial information presented below is based on the Company’s condensed consolidated financial statements and excludes certain adjustments detailed above. The Company uses this non-GAAP information to evaluate its operating performance. This presentation is not in accordance with, or an alternative for, GAAP and may be different from the non-GAAP presentation used by other companies.

EMULEX CORPORATION AND SUBSIDIARIES
Non-GAAP Condensed Consolidated Statements of Income ⁽⁴⁾
(in thousands, except per share data)
(unaudited)

	Three Months Ended
	September 26,			September 28,
	2004			2003
Net revenues	$	73,225		$	84,577
Cost of sales		29,208			30,131
Gross profit		44,017			54,446
Operating expenses:
Engineering and development		19,674			15,934
Selling and marketing		7,185			4,457
General and administrative		3,493			3,620
Total operating expenses		30,352			24,011
Operating income		13,665			30,435
Nonoperating income:
Interest income		2,719			2,498
Interest expense		(1,347	)		(1,033	)
Other income (expense), net		(10	)		106
Total nonoperating income		1,362			1,571
Income before income taxes		15,027			32,006
Income tax provision		5,538			11,936
Net income	$	9,489		$	20,070
Net income per share:
Basic	$	0.11		$	0.24
Diluted	$	0.11		$	0.24
Number of shares used in per share computations:
Basic		82,561			82,541
Diluted		83,788			87,472

The interest expense adjustment, net of tax, to the Company’s non-GAAP diluted per share calculation due to the dilutive effect of its convertible subordinated notes was $64 and $647 for the three months ended September 26, 2004, and September 28, 2003, respectively.

⁽⁴⁾ See the preceding Note Regarding Non-GAAP Financial Information, as well as the Reconciliation of GAAP Net Income to Non-GAAP Net Income.

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October 21, 2004
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EMULEX CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

	September 26,		June 27,
	2004		2004
Assets
Current assets:
Cash and cash equivalents	$	110,018	$	192,137
Restricted cash		—		23
Investments		249,857		220,114
Accounts and other receivables, net		47,816		61,720
Litigation settlements receivable		—		5,101
Inventories, net		25,021		31,835
Prepaid expenses		4,036		3,572
Deferred income taxes		26,066		26,824
Total current assets		462,814		541,326
Property and equipment, net		64,481		64,570
Investments		197,424		243,125
Other intangibles, net		116,120		122,667
Other assets		1,067		1,293
	$	841,906	$	972,981
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	15,939	$	21,747
Accrued liabilities		20,658		22,839
Income taxes payable		9,822		9,910
Total current liabilities		46,419		54,496
Convertible subordinated notes		375,372		524,845
Deferred income taxes and other		9,706		486
Total liabilities		431,497		579,827
Total stockholders’ equity		410,409		393,154
	$	841,906	$	972,981

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Emulex Corporation FY ‘05 First Quarter Results
October 21, 2004
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EMULEX CORPORATION AND SUBSIDIARIES
Supplemental Information

Historical Revenue by Channel and Territory:

	Q1 FY 2005					Q1 FY 2004					% Change
($000s)	Revenue		% Total Revenue			Revenue		% Total Revenue			Year/Year
Revenue from OEM customers	$	50,851		70	%	$	48,010		57	%		+6	%
Revenue from distribution		22,262		30	%		36,527		43	%		-39	%
Other		112		nm			40		nm			nm
Total net revenues	$	73,225		100	%	$	84,577		100	%		-13	%
United States	$	37,675		52	%	$	52,975		63	%		-29	%
Europe		24,253		33	%		23,026		27	%		+5	%
Pacific Rim countries		11,297		15	%		8,576		10	%		+32	%
Total net revenues	$	73,225		100	%	$	84,577		100	%		-13	%

Forward-Looking Diluted Earnings per Share Reconciliation:

	Guidance for
	Three Months Ending
	December 26, 2004 (5)
Non-GAAP diluted earnings per share guidance	$	0.13-0.15
Items excluded, net of tax, from non-GAAP diluted earning per share to calculate GAAP diluted earnings per share guidance:
Amortization of intangibles		(0.04	)
Amortization of deferred stock-based compensation		(0.01	)
GAAP diluted earnings per share guidance	$	0.08-0.10

⁽⁵⁾ Diluted earnings per share guidance for the three months ended December 26, 2004, includes approximately 8.4 million common stock equivalents associated with our 0.25% contingent convertible debt on the assumption that EITF 04-8, “The Effect of Contingently Convertible Instruments on Diluted Earning per share” will be effective. If EITF 04-8 had been effective for the three months ended September 26, 2004, GAAP diluted earnings per share would have been approximately $0.16 per share and non-GAAP earnings per share would have been approximately $0.11 per share.

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