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Emulex Corp. (ELX) Is “One To Watch”

|Includes: Emulex Corporation (ELX)

In the world of Information Technology, connectivity is the market behind the market, and it's growing every day. Connectivity is what has made IT an indispensable foundational element of virtually every major business, by allowing a host of different IT machines and networks of machines to think and act together. And at the very heart of IT connectivity are the devices that make it all possible, the adapters, controllers, switches, and bridges, along with the associated support software. Since IT connectivity tends to be a behind-the-scenes industry, it doesn't get the exposure more common with high-visibility ends of the business, but therein hides the opportunity.

Emulex, based in Cosa Mesa, California, is a leader in converged networking solutions for data centers, essentially products for connecting servers, networks, and storage devices. The company's solutions are used and offered by some of the biggest names in the server and storage OEM industry, including Cisco, Dell, Fujitsu, Hitachi, HP, IBM, NEC, and Oracle, and have been time-tested in the world's most demanding IT environments.

Emulex products include connectivity software, Fibre Channel host bus adapters, Fibre Channel over Ethernet converged network adapters, embedded storage switches, storage I/O controller and SAN storage switch products. To someone outside the IT world, it's all pretty esoteric, but Emulex products play a critical role in keeping some very big names up and running, and the company partners with the best. For example, Emulex and Cisco have worked collaboratively on technology that transforms data center networks into an agile infrastructure.

It's one of the reasons for the big rise in share price over the past month, as the company announced faster than expected recovery of its production operations in Thailand, following some of the worst flooding in decades. The educated marketplace knows that the demand is there.

For additional information, visit the company's website at

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