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Emulex Surges, Ramps Up Expansion

COSTA MESA, Calif. ( TheStreet) -- The list of companies using Emulex's (ELX) server and storage technology -- including IBM (IBM - Get Report), DELL (DELL), Hewlett-Packard (HPQ - Get Report) and Cisco (CSCO - Get Report) -- just keeps growing.

In recent months, the company has talked about 15 "design wins" for its components, although CEO Jim McCluney admitted that the number is much bigger during a conference call organized by analyst firm Canaccord Adams.

"Not to be facetious, but we're running out of fingers and toes for our design wins," he quipped. "[In] the first half of this year, the majority of those 15 will come to market."

McCluney explained that the company had "ratcheted up more than 20 design wins," in response to a question from TheStreet. "The key message is that top-tier OEMs are adopting Emulex's technology."

The company's shares closed up 72 cents, or 6.35%, at $12.06 on Tuesday, far outpacing the modest advance in tech stocks that saw the Nasdaq climb 0.87%.

The data center equipment specialist, which competes with QLogic (QLGC - Get Report), Brocade (BRCD - Get Report) and LSI (LSI), recently announced strong second-quarter results and has emerged as something of an analyst darling.

Last year McCluney told TheStreet that the tech rebound is underway, spurred on by companies' cloud computing efforts.

During Emulex's conference call on Tuesday the CEO added that companies are also shifting from 1-Gigabit Ethernet to higher performance 10-Gigabit Ethernet systems, as well as the latest versions of Intel's (INTC - Get Report) Nehalem chip, all of which are driving demand.
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