Emulex Says It Expects to Show Profit

Buoyed by a reorganization and sales of new computer products, Emulex Corp. said Tuesday that it expects to report a profit and higher revenue for the fiscal year ended June 30.

Robert N. Stephens, chief executive of Emulex, said he anticipates earnings of 73 cents to 75 cents a share for the fiscal year, contrasted with a loss of 10 cents a share, or $1 million, a year earlier. Net income estimates were not available for the anticipated earnings.

Stephens estimated annual revenue at $153 million, up 27% from a year earlier. The revenue boost comes from strong sales in each of Emulex’s product areas: storage equipment for minicomputers, products for networks of computers, and computer-chip products.

“This has been a satisfying year for us because, in spite of weak economic conditions, we achieved record revenues and made investments for our future,” Stephens said in a statement. “We reorganized into a more focused company, strengthened our marketing efforts and worked closely with customers to find ways to use Emulex’s strengths in technology, manufacturing and distribution to satisfy their needs.”

When Stephens replaced founder Fred Cox as chief executive in October, he reorganized the company to concentrate on the three product segments and increased marketing. The computer-chip product market remains the company’s fastest growing market, said spokeswoman JoAnne Martz, but each segment has been helped by a series of new-product introductions.

Emulex’s storage business was helped by a custom contract from International Business Machines Corp. that is expected to generate fiscal year revenue of $23 million to $25 million, said Martz. Last fall, the company began making storage components for IBM’s mid-range computer, the AS/400.

For the fourth quarter, the company expects to report earnings of 20 cents to 22 cents a share on revenue of about $39 million. That compares to earnings of 10 cents a share on revenue of $32.5 million a year earlier.