This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Emulex CEO Eyes Network Dollars

NEW YORK ( TheStreet) -- Jeff Benck, the new CEO of server component specialist Emulex (ELX - Get Report), sees a massive opportunity in network monitoring following the company's acquisition of Endace earlier this year.

Emulex, known for server and storage interconnect technology, completed its $127 million purchase of NetScout (NTCT - Get Report) rival Endace in April, and sees its network monitoring devices as a path to new revenue.

"We have insight into the servers, and now we can monitor what's on the wire," said Benck, in an interview. "It's a key growth opportunity for us - we're playing in a market that's $600 million and it's growing at 25% compound, annually."

The CEO described Endace's technology as a "DVR for your network," recording traffic which can then be analyzed for security threats and performance problems.

"With all the aggressive threats out there, for the enterprise being able to understand what's going on and get to the root cause of problems on your network is more and more important," said Benck, who took over from Jim McCluney this week.

Emulex reported preliminary fourth-quarter results this week, but did not break out any specific numbers for Endace.

"We will give more color on the forthcoming earnings call," said Benck, but noted Endace is gaining traction. "We have got a lot of exciting new customers in the cloud space, some of the Web giants are starting to buy Endace - we're not quite ready to share names, but we're really excited about some of the customers that we have added."

Emulex has not yet released the date for its earnings conference call, although its fourth-quarter results are typically announced in the second week of August.

Shares of Emulex have climbed more 14% this year, most recently buoyed by sale chatter swirling around the company.

Benck, however, declined to comment on the recent Bloomberg report that Emulex has hired Goldman Sachs (GS) to seek potential buyers.

Emulex shares dipped 0.12% to $8.31 in Friday trading.

--Written by James Rogers in New York.

>To submit a news tip, send an email to:

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
ELX $7.97 0.00%
NTCT $43.86 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs