Emulex Corp.

Emulex Corp., a computer equipment maker struggling to maintain growth in the face of rising competition, reported Thursday a 23% decrease in earnings on a 48% increase in revenues for the second quarter of fiscal 1985.

The Costa Mesa-based company said profit for the quarter ended Dec. 30 was $2.7 million, down from $3.5 million a year earlier. Revenues for the period were $27.3 million, compared with $18.5 million for the second fiscal quarter of 1984.

Emulex Chairman Fred B. Cox said that operating margins primarily were cut by the increased expense of bolstering reserve funds. The reserves will be used to cushion the company if it has to take a loss on outdated or over-priced inventory.

He said the company increased the reserves because inventories were high and market prices for semiconductor and other computer parts had dropped. “We have taken a conservative position to minimize (our) risk,” Cox said.

The quarterly results bring the company’s six-month earnings to $5 million, a 22% decrease from the $6.4 million in the first half of fiscal 1984. Revenues for the period were $51.4 million, a a 53% gain from $33.6 million a year earlier.