Emulex Joins 25Gb Ethernet Consortium to Drive Industry Standardization

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COSTA MESA, Calif.--(BUSINESS WIRE)--

Emulex Corporation ELX, a leader in network connectivity, monitoring and management, today announced that it has joined the 25Gb Ethernet (25GbE) Consortium to drive industry standardization. The 25GbE Consortium was formed by several networking technology companies to provide an industry-standard, interoperable Ethernet specification that will enable the cost-efficient scaling of network bandwidth delivered to server and storage endpoints in next generation cloud infrastructure.

Emulex has worked with IEEE and other industry leaders to standardize 10GbE, 40GbE, and 100GbE, and will participate in both the 25GbE Consortium and the IEEE Study Group and upcoming IEEE 802.3by Task Force for 25GbE with the goal of creating a single, cost effective and backward compatible standard for a single-lane 25GbE speed for server interconnects.

“The Ethernet community has thrived for more than 40 years due to open standards that provide a roadmap for the future and backward compatibility to protect existing investments. Now that 10GbE is more than 20 percent of currently shipping ports and growing at 19 percent Compound Annual Growth Rate (CAGR) through 2018, according to Crehan Research1, we must bring 25GbE to market in a way that doesn't require forklift upgrades and ensures forward and backward compatibility between new 25GbE devices and the existing 10GbE installed base,” said Shaun Walsh, senior vice president of marketing, Emulex. “We look forward to collaborating with the 25GbE Consortium members to develop interoperable solutions that increase the performance of data center networks and address the needs of the latest generation of Intel Xeon-based servers that demand more cost effective bandwidth while maintaining investment protection.”

1. Crehan Research, 2Q14 Quarterly Market Share Tables, Server-Class Adapter and LOM Controller Report, August 2014

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About the 25GbE Consortium

The 25 Gigabit Ethernet Consortium enables industry participants to develop new technologies that function in accordance with the Specification(s) outlined in the consortium agreement in order to benefit consumers and the industry by facilitating accelerated adoption of 25 and/or 50 Gbps technologies. For more information, visit www.25GEthernet.org.

About Emulex

Emulex, a leader in network connectivity, monitoring and management, provides hardware and software solutions for global networks that support enterprise, cloud, government and telecommunications. Emulex's products enable unrivaled end-to-end application visibility, optimization and acceleration. The Company's I/O connectivity offerings, including its line of ultra high-performance Ethernet and Fibre Channel-based connectivity products, have been designed into server and storage solutions from leading OEMs, including Cisco, Dell, EMC, Fujitsu, Hitachi, HP, Huawei, IBM, NetApp and Oracle, and can be found in the data centers of nearly all of the Fortune 1000. Emulex's monitoring and management solutions, including its portfolio of network visibility and recording products, provide organizations with complete network performance management at speeds up to 100Gb Ethernet. Emulex is headquartered in Costa Mesa, Calif., and has offices and research facilities in North America, Asia and Europe. For more information about Emulex ELX please visit http://www.Emulex.com.

“Safe Harbor” Statement

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above, contain forward-looking statements that involve risk and uncertainties. We expressly disclaim any obligation or undertaking to release publicly any updates or changes to these forward-looking statements that may be made to reflect any future events or circumstances. We wish to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include the possibility that our previously announced cost savings initiatives will not be realized on a timely basis. The assumptions on which the cost savings and related and capital return goals and expectations are based involve judgments with respect to, among other things, economic, competitive and financial market conditions and the impact of the cost savings initiative on our customers, all of which are difficult or impossible to predict and many of which are beyond the Company's control. These factors also include the possibility that we may not realize the anticipated benefits from the acquisition of Endace Limited on a timely basis or at all, and may be unable to integrate the technology, operations and personnel of Endace into our existing operations in a timely and efficient manner. In addition, intellectual property claims, with or without merit, could result in costly litigation, cause product shipment delays, require us to indemnify customers, or require us to enter into royalty or licensing agreements, which may or may not be available. Furthermore, we have in the past obtained, and may be required in the future to obtain, licenses of technology owned by other parties. We cannot be certain that the necessary licenses will be available or that they will be obtainable on commercially reasonable terms. If we were to fail to obtain such royalty or licensing agreements in a timely manner and on reasonable terms, our business, results of operations and financial condition could be materially adversely affected. Lawsuits present inherent risks, any of which could have a material adverse effect on our business, financial condition, or results of operations. Such potential risks include continuing expenses of litigation, loss of patent rights, monetary damages, injunctions against the sale of products incorporating the technology in question, counterclaims, attorneys' fees, incremental costs associated with product or component redesigns, liabilities to customers under reimbursement agreements or contractual indemnification provisions, and diversion of management's attention from other business matters. In addition, the fact that the economy generally, and the network connectivity and visibility market segments specifically, have been in a state of uncertainty makes it difficult to determine if past experience is a good guide to the future and makes it impossible to determine if markets will grow or shrink in the short term. Continued weakness in domestic and worldwide macro-economic conditions, currency exchange rate fluctuations, potential disruptions in world credit and equity markets, and the resulting economic uncertainty for our customers, as well as the overall network connectivity and visibility markets, has and could continue to adversely affect our revenues and results of operations. As a result of these uncertainties, we are unable to predict our future results with any accuracy. Other factors affecting these forward-looking statements include but are not limited to the following: faster than anticipated declines in the storage networking market, slower than expected growth of the converged networking market or the failure of our Original Equipment Manufacturer (OEM) customers to successfully incorporate our products into their systems; our dependence on a limited number of customers and the effects of the loss of, decrease in or delays of orders by any such customers, or the failure of such customers to make timely payments; the emergence of new or stronger competitors as a result of consolidation movements in the market; the timing and market acceptance of our products or our OEM customers' new or enhanced products; costs associated with entry into new areas of the network connectivity and visibility markets; the variability in the level of our backlog and the variable and seasonal procurement patterns of our customers; any inadequacy of our intellectual property protection and the costs of actual or potential third-party claims of infringement and any related indemnity obligations or adverse judgments; the effect of any actual or potential unsolicited offers to acquire us; proxy contests or the activities of activist investors; impairment charges, including but not limited to goodwill and intangible assets; changes in tax rates or legislation; the effects of acquisitions; the effects of terrorist activities, natural disasters, and any resulting disruption in our supply chain or customer purchasing patterns or any other resulting economic or political instability; the highly competitive nature of the markets for our products as well as pricing pressures that may result from such competitive conditions; the effect of rapid migration of customers towards newer, lower cost product platforms; transitions from board or box level to application specific integrated circuit (ASIC) solutions for selected applications; a shift in unit product mix from higher-end to lower-end or mezzanine card products; a faster than anticipated decrease in the average unit selling prices or an increase in the manufactured cost of our products; delays in product development; our reliance on third-party suppliers and subcontractors for components and assembly; our ability to attract and retain key technical personnel; our ability to benefit from our research and development activities as well as government grants related thereto; our dependence on international sales and internationally produced products; changes in accounting standards; and any resulting regulatory changes on our business. These and other factors could cause actual results to differ materially from those in the forward-looking statements and are discussed in our filings with the Securities and Exchange Commission, including our recent filings on Forms 10-K and 10-Q, under the caption “Risk Factors.”

All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.

Emulex Corporation
Katherine Lane, +1 714-885-3828
Senior Director, Corporate and Marketing Communications
katherine.lane@emulex.com
or
Jolene Peixoto, +1 714-885-3858
Senior Manager, Public Relations and Social Media
jolene.peixoto@emulex.com

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