This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Emulex Surges, Ramps Up Expansion

COSTA MESA, Calif. ( TheStreet) -- The list of companies using Emulex's (ELX - Get Report) server and storage technology -- including IBM (IBM - Get Report), DELL (DELL - Get Report), 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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
LSI $0.00 0.00%
DELL $0.00 0.00%
BRCD $12.10 0.00%
CSCO $28.82 0.00%
EMC $26.50 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs