Emulex -8.4%; SCOP revenue expected to tumble in FY15


On top of beating FQ4 estimates, Emulex (NYSE:ELX) is guiding for FQ1 revenue of $93M-$99M and EPS of $0.07-$0.11, favorable to a consensus of $94.2M and $0.06.

However, on the CC (transcript), the company forecast its storage connectivity/other products unit (SCOP - covers bridges, storage controllers, and other products) will decline by 30% or more in FY15 (ends June '15), as "a significant portion" of related sales enter the end-of-life stage.

SCOP was 17% of FQ4 revenue. As it is, the unit's sales fell 32% Q/Q and 42% Y/Y during the quarter.

On the bright side, Emulex thinks its slumping Fibre Channel adapter/switch business is improving, and believes (after seeing QLGC's FQ1 numbers) it grabbed 200 bps of Fibre Channel share in FQ4.

The company also expects Intel's upcoming Grantley Xeon server CPU launch will boost Ethernet-related sales, though it suggests much of the impact will come in the second half of FY15.

FQ4 results, PR

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