Emulex

(ELX)

posted fiscal fourth-quarter results Thursday that modestly beat its drastically reduced guidance from more than a month ago. The company also said first-quarter revenue could come in lower than previously forecast.

Under generally accepted accounting principles, the Costa Mesa, Calif.-based network storage vendor reported net income of $10.6 million, or 13 cents a share, in the fourth quarter, which ended June 27. That was down from net income of $18.4 million, or 22 cents a share, in the same period a year earlier.

Excluding charges, Emulex said it earned pro forma net income of $15.9 million, or 19 cents a share, in the fourth quarter, down from pro forma net income of $19.1 million, or 23 cents a share, a year earlier. That was a penny higher than the company's updated guidance provided July 1 and the consensus estimate gathered by Thomson First Call.

Revenue rose 6% from a year ago to $86.4 million, just above the company's updated guidance of $85 million to $86 million provided last month and also higher than the latest Wall Street consensus of $85.3 million.

Before its July 1

preannouncement, Emulex had forecast it would ring in $100 million to $103 million in revenue and post pro forma profit of 25 cents a share.

Also on July 1, Emulex lowered its guidance for the first quarter of 2005 to revenue of $75 million to $76 million, down about $10 million from its earlier projections. The company updated that guidance Thursday, saying it was budgeting for first-quarter revenue to range from $73 million to $76 million, non-GAAP earnings of 9 cents to 10 cents a share and GAAP earnings of 8 cents to 9 cents a share. The difference represents 1 cent a share in expected charges arising from amortization of intangibles and deferred stock-based compensation, offset partially by additional insurance recovery related to class-action lawsuits of about $4 million to $5 million more than previously estimated.

Wall Street analysts were forecasting Emulex would earn 14 cents a share on $75.6 million in revenue in the fiscal first quarter.

The company's revenue shortfall announced last month appeared to stem from inventory issues at two of the company's major customers --

EMC

(EMC)

and

Hewlett-Packard

(HPQ) - Get Report

.

Shares of Emulex declined 16 cents, or 1.6%, to close Thursday's regular session at $10.08. Shares were recently flat in after-hours trading.