EX-99.01 2 a07761exv99w01.htm EXHIBIT 99.01 Exhibit 99.01
 

EXHIBIT 99.01

(Emulex Logo)



FOR IMMEDIATE RELEASE

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

EMULEX ANNOUNCES PRELIMINARY THIRD QUARTER RESULTS

Record Revenue and Net Income Expected

     COSTA MESA, Calif., April 7, 2005 — Emulex Corporation (NYSE:ELX), the industry’s preeminent source for a broad range of advanced storage networking infrastructure solutions, today announced that it expects to report revenues of approximately $101-$102 million for the third fiscal quarter ended March 2005, compared to the range of $91-$93 million projected during the Company’s second quarter conference call in January 2005. The Company expects non-GAAP earnings per share for its third fiscal quarter to approximate $0.23-$0.24 per share, compared to the prior projection of $0.18-$0.20. On a GAAP basis, including amortization of intangibles and deferred stock-based compensation, the Company expects to report earnings of approximately $0.18-$0.19 per share, compared to prior guidance of approximately $0.13-$0.15 per share.

     Paul Folino, Chairman and CEO of Emulex, stated, “During the third quarter, Emulex experienced a continuation of the broad strengthening of demand that occurred in the December quarter, resulting in record sales of our Fibre Channel solutions and delivering our first quarter that exceeded $100 million in revenue. With revenue up more than 10% sequentially, we expect to report record net income and earnings in the March quarter.”

     Emulex will announce its third quarter financial and operating results on April 21, 2005, and will provide additional information and commentary during its regularly scheduled quarterly conference call on that date.

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Emulex Corporation Preliminary Third Quarter Results
April 7, 2005
Page 2 of 4

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. 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 used by the Company 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 deferred 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

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Emulex Corporation Preliminary Third Quarter Results
April 7, 2005
Page 3 of 4

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. In recent quarters, 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 filings 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 Preliminary Third Quarter Results
April 7, 2005
Page 4 of 4

Diluted Earnings per Share Reconciliation:

         
    Three Months Ending  
    March 27, 2005  
Non-GAAP diluted earnings per share guidance
   $ 0.23-0.24  
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
   $ 0.18-$0.19  
 
      

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