NEW YORK (TheStreet) -- Shares of Emulex Corporation (ELX) are down -23.43% to $5.48 on Thursday, after a ratings downgrade to "neutral" from "overweight" at Piper Jaffray following the company's 2014 third quarter results.
The company, which provides network convergence solutions that connect servers, storage and networks within the data center, reported net income was $7.2 million or 9 cents per diluted share for the 2014 third quarter, compared to $6.8 million, or 8 cents per diluted share from the same quarter the previous year.
Emulex reported a net revenue of $109.7 million versus $116.8 million from the 2013 third quarter.
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Gross profit for the third quarter was $63.6 million, versus the 2013 third quarter gross profit of $68.4 million.
Piper Jaffray said the company is lacking visibility and potential catalysts.
Separately, TheStreet Ratings team rates EMULEX CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate EMULEX CORP (ELX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity."