Emulex 1Q profit falls 49 pct as sales drop

Data storage equipment maker Emulex says fiscal 1Q profit falls 49 percent as sales drop

• On 6:21 pm EDT, Thursday October 22, 2009

COSTA MESA, Calif. (AP) -- Emulex Corp., which makes data storage equipment, said Thursday its fiscal first-quarter profit fell 49 percent as it generated fewer sales.

Emulex earned $3.8 million, or 5 cents per share, in the quarter that ended Sept. 27. That is down from the $7.5 million, or 9 cents per share, it earned a year earlier.

Adjusted profit was 8 cents per share, beating a 6 cent per share consensus prediction of analysts polled by Thomson Reuters.

Revenue fell 23 percent to $85.5 million from $111.7 million. Analysts expected $81 million.

The company, based in Costa Mesa, is the subject of an unsolicited takeover bid by Broadcom Corp. It said litigation costs to fight the takeover, as well as writedowns and stock-based compensation costs, will amount to about 15 cents per share in costs in the second quarter.

It expects to report second-quarter profit, excluding the one-time items, in a range of 10 cents to 12 cents per share. Analysts expect 10 cents.

Emulex shares fell 8 cents to $11.17 in aftermarket trading after closing at $11.18, up 24 cents from a day earlier.