Emulex CEO Benck Accelerates Changes to Boost Profitability

NEW YORK (TheStreet) - Four months after taking the company's top post, Emulex (ELX) CEO Jeff Benck has shifted the focus of the server components specialist in an effort to boost profitability and shareholder value.

Emulex, which was the subject of sale chatter earlier this year, announced a $200 million share repurchase on Monday while making changes to its board of directors and outlining plans to cut costs. 

"This is a very transformational move for the company because it's across a number of dimensions," Benck told TheStreet, in a phone interview. "This is a real step change in the company's strategy in that we're looking at every facet of the business, including changes at the board level to ensure that we're well equipped to be a leader into the future." 

Emulex shares received a boost after the company announced its new strategy and are up more than 25% over the last 6 months. Shares of the server and storage interconnect specialist, however, dipped 0.77% to $7.71 in Wednesday trading. 

"There's a lot of exciting things going on here, and we can use this as a platform to attract a bunch of new folks to our story," added Benck. 

The CEO is also wants to ensure that Emulex gets a return on its product development investments. 

"I have asked my team to kind of go through every inflight program and go understand - 'is it meeting its objectives'?" he said. "I want to stop doing anything that maybe looked great at the onset, but, as you look into it, you find that the return isn't there." 

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