Emulex Warns of Shortfall:

Emulex Corp. warned that it expects third-quarter earnings to fall below Wall Street estimates because of a downturn in demand for its data-storage equipment. Costa Mesa-based Emulex had first warned that its corporate customers were putting off purchases of its products, which are used to connect data-storage networks in February and said that trend had continued at the close of the third quarter, which ended on April 1. Emulex shares closed sharply higher, in line with the rebound in the broader market for technology stocks. Emulex, which trades on Nasdaq, rose $4.50, up $17, or 36%, on Thursday, the largest single-day rally in eight months. The company said it believes pro forma earnings will be about 13 cents a diluted share for the quarter. That compares with earnings of 10 cents a share for the same period a year ago, but well below earlier expectations of 23 cents. The consensus estimate of analysts polled by First Call/Thomson Financial was for earnings of 19 cents a share. Emulex said it expects third-quarter revenue of $59 million to $60 million, up more than 60% from a year ago.