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Emulex Says It Plans to Decrease Sales Staff

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TIMES STAFF WRITER

Emulex Corp., a maker of computer parts, said Monday that it plans to cut its sales staff in anticipation of lower profits during the general slowing of the computer industry.

In a written statement, the Costa Mesa company said that it expects earnings for its third fiscal quarter, which ends Sunday, to be less than its profit of $2.6 million for the second quarter. The company did not make comparisons, however, to its previous third quarter, as is the usual practice when discussing corporate earnings.

The company did not return phone calls for comment. It also did not say how many sales employees would be cut or how far it expects its earnings to fall.

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In the prepared statement, Senior Vice President Bob L. Corey blamed slumping sales industrywide and mentioned that even computer giant IBM has had declining revenue.

Much of the decrease in Emulex’s profit, the company said, comes from its Network Systems division, which manufactures hardware and software for computer networks. The company stated that the performance of its Micro Devices subsidiary is in line with management’s expectations.

In Monday’s trading on the NASDAQ market, Emulex’s stock closed at $6.25 a share, down 50 cents.

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