SCIENCE

COSTA MESA, CA -- Emulex Corp. (Nasdaq:EMLX), the world's largest supplier of storage networking host bus adapters (HBAs), today announced results for its fourth fiscal quarter ended July 1, 2001. Revenues expanded to $58.4 million, up 43% from the $40.8 million reported for the same quarter a year ago. Pro forma net income, which excludes deferred compensation and acquisition-related charges, amounted to $9 million, or $0.11 per diluted share, for the fourth quarter of fiscal 2001 compared with net income of $9.6 million, or $0.12 per diluted share, for the same quarter a year ago. For the fourth fiscal quarter, on a GAAP basis which includes deferred compensation and other non-cash acquisition-related charges, Emulex reported a net loss of $31.3 million, or $0.38 per share, compared with net income of $9.6 million, or $0.12 per diluted share for the prior year's period. Deferred compensation and acquisition-related charges amounted to $40.3 million in the current quarter, reflecting the acquisition of Giganet Inc., an early-stage company specializing in Internet protocol (IP) storage networking solutions, which was completed on March 1, 2001. "Fibre Channel revenues declined 2% sequentially but grew 49% from a year ago to $56.9 million or 97% of total revenue," said Paul Folino, Emulex's president and CEO. "Although we experienced a sharp decrease in Fibre Channel demand at one OEM customer, we were encouraged to see other key OEMs deliver sequential growth, and further encouraged by a resumption of demand from this one key customer early in the first quarter of fiscal 2002. "In addition, shipments of Emulex's recently launched 2 gigabit host bus adapters, including the LP9002, tripled sequentially, expanding to 12% of revenue. Nevertheless, the environment remains challenging and visibility remains limited. "As a result, Emulex continues to manage selling, general and administrative expense growth while remaining committed to invest in and deliver next-generation solutions in Fibre Channel, iSCSI and VI/IP." For additional information visit www.emulex.com