Emulex Corp Expects Better Q2 Results (ELX)

Emulex Corp (NYSE: ELX) expects its next quarterly result to be better than the expectations it had last quarter because there is a surge in the demand for its products that are used to connect computers to remote storage equipment and servers to fiber channel networks. Emulex has revised its proforma financial statements to book revenues up to $107-$108 million up by almost 19% from the previous forecast of $88-$92 million.

Emulex expects to earn 16 to 17 cents per share as compared to its previous forecast of 10 to 12 cents per share. Due to this positive sentiment, there was a sudden rise in its share price by 9%, improving its market capitalization also to that extent. Emulex stock is currently trading at $12.59.

Emulex is the market leader in converged networking solutions for data centers. Its various product segments such as Hot Server Products (HSP), Embedded Storage Products (ESP) and Fibre Channel over Ethernet Converged Network Adapter (FCoE CNA) have improved its revenues significantly and it is expected to show further improvement because of increased expected market share.

Emulex had taken many marketing initiatives to improve its market share in 2010 and it was successful in doing so. The President and CEO of Emulex, Jim McCluney, is very optimistic about the company’s performance in 2010 due to the increased spending in IT and expansion of product portfolio. So, a further rise in Emulex’s stock can be expected soon to encapsulate this growth in 2010.