Storage equipment maker

Emulex

(EMLX)

was down 48.2% in midmorning on the heels of its warning late Friday that it might miss third-quarter estimates as customers continue to defer orders.

USB Bancorp Piper Jaffray

downgraded the stock to neutral from buy.

Piper Jaffray also cut storage infrastructure provider

QLogic

(QLGC)

to neutral from buy. QLogic was halved to a 52-week low of $35 in early trading but bounced and was down 26.1% midmorning.

Other stocks feeling the fallout from Emulex include storage software maker

Veritas

(VRTS) - Get Report

, which was down 9.1% and

Brocade

(BRCD)

, which was down 16.1%.

J.P. Morgan Chase

cut its price target on Brocade to $85 from $125.

EMC

(EMC)

, the giant among data storage companies, was down 6.5%.