January 5, 2009 / 10:48 PM / 10 years ago

UPDATE 1-Emulex cuts Q2 revenue outlook

Jan 5 (Reuters) - Storage-equipment maker Emulex Corp ELX.N cut its second-quarter revenue outlook and said it was assessing whether its goodwill or other assets have been impaired due to reduced enterprise value resulting from a decline in stock price.

The company now expects revenue of about $107 million to $108 million for the second quarter ended Dec. 28, compared with its prior outlook of $111 million to $116 million.

Excluding items, the company expects earnings of about 20 cents per share, compared with its prior outlook of 20 cents to 23 cents per share.

Although impairment charges cannot be determined at this time, they may result in a loss for the quarter on a GAAP basis, the company said in a statement.

Costa Mesa, California-based Emulex, whose top customers are EMC Corp EMC.N, Hewlett-Packard Co (HPQ.N) and International Business Machines Corp (IBM.N), earns about 30 percent of its revenue from embedded storage products.

The company gets more than 70 percent of its revenue from the host server products segment.

Shares of the company, which competes with QLogic Corp QLGC.O in the fiber channel host bus adapter market, closed at $7.11 Monday on the New York Stock Exchange. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Vinu Pilakkott)

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