COSTA MESA, Calif. ( TheStreet) -- Emulex ( ELX) shares have climbed more than 8% in the last few days, buoyed by partnerships with technology giants IBM ( IBM) and Hewlett-Packard ( HPQ), and the datacenter specialist says that more deals are in the pipeline. Since closing at $12.41 last Thursday, Emulex' stock rose and closed at $13.55 yesterday. This easily outpaced the Nasdaq, which rose just 2% over the same period. Emulex shares also crept up 5 cents, or 0.37%, to $13.49 shortly after market open on Thursday, mirroring the Nasdaq, which gained 0.2%. "We're getting broad-based adoption of our server technology," Jeff Benck, the Emulex COO, told TheStreet, adding that additional OEM partnerships are looming on the horizon. "We're in qualifications with a number of OEMs beyond the two big guys that we announced." On Friday Emulex announced that H-P is selling its OneConnect 10-Gbit/s Ethernet and Fibre Channel over Ethernet (FCoE) adapters in a number of its servers. It also unveiled a deal in which IBM will use the OneConnect technology on eight of its servers. Launched last year, OneConnect is a Converged Network Adapter (CNA), essentially a small motherboard that supports storage and server networking technology. Other firms such as Emulex arch rival QLogic ( QLGC) and Brocade ( BRCD) also tout this type of technology, underlining users' desire to build much more converged networks. Earlier this week, Qlogic announced that Cisco ( CSCO) has certified its CNAs. Qlogic already works with IBM ( IBM), NetApp ( NTAP), EMC ( EMC) and Dell ( DELL). Emulex CEO Jim McCluney recently explained that his firm has more than 20 design wins for its OneConnect components, which include the new IBM and H-P systems, and Benck said that this figure is rising. "We continue to win new designs every month," he told TheStreet. "
But it's not really about the design wins, it's about driving incremental revenue in the market." Emulex, which makes a slew of different networking components, has become something of an analyst darling and announced strong second-quarter results. "Incremental revenue from new design wins, which remain on track to be announced in the first half of 2010, should account for 10% of the company's revenue exiting 2010," wrote Simona Jankowski, an analyst at Goldman Sachs in a recent note. "Although gross margins from its new 10-Gbit/s Ethernet offering (as part of its universal converged adaptor platform) will likely come in below the company's current Fibre Channel offering, stronger volumes should help drive earnings higher."
Jankowski, who gave Emulex a neutral rating, said that the company's 2010 performance will be driven by improving enterprise demand and a hardware refresh of server and storage gear. Emulex COO Benck predicts that 2010 will be a big year for 10-Gbit/s Ethernet. Initiatives such as America's national broadband plan, which will be announced later this month, are highlighting the need for faster network performance. "As people look to move broadband around the world, that will fuel adoption, no doubt about it," he said. "I think we will see 10-Gbit/s Ethernet move into mainstream adoption in 2010 and into 2011." -- Reported by James Rogers in New York Follow James Rogers on Twitter and become a fan of TheStreet.com on Facebook.