<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
---------------------
(Mark One)
[X] Quarterly Report Pursuant to
Section 13 or 15(d) of the
Securities Exchange Act of 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 29, 1996
OR
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
COMMISSION FILE NO. 0-11007
EMULEX CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 51-0300558
(State or other jurisdiction (I.R.S Employer
of incorporation or organization) Identification No.)
3535 HARBOR BOULEVARD
COSTA MESA, CALIFORNIA 92626
(Address of principal executive offices) (Zip Code)
(714) 662-5600
(Registrant's telephone number, including area code)
---------------------------------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
--- ---
As of November 7, 1996, the registrant had 6,033,210 shares of common stock
outstanding.
<PAGE> 2
EMULEX CORPORATION AND SUBSIDIARIES
INDEX
PAGE
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
September 29, 1996 and June 30, 1996 2
Condensed Consolidated Statements of Operations
Three months ended September 29, 1996
and October 1, 1995 3
Condensed Consolidated Statements of Cash Flows
Three months ended September 29, 1996 and October 1, 1995 4
Notes to Condensed Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 11
1
<PAGE> 3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
EMULEX CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share data)
(unaudited)
<TABLE>
<CAPTION>
September 29, June 30,
Assets 1996 1996
---- ----
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 543 $ 1,635
Accounts and notes receivable, net 13,924 12,993
Inventories, net 11,786 14,671
Prepaid expenses 1,988 1,892
Income tax receivable 531 388
------- -------
Total current assets 28,772 31,579
Property, plant and equipment, net 7,496 7,533
Other assets 189 188
------- -------
$36,457 $39,300
======= =======
Liabilities and Stockholders' Equity
Current liabilities:
Note payable to bank $ 2,000 $ --
Current installments of capitalized
lease obligations 234 261
Accounts payable 5,627 8,699
Accrued liabilities 5,040 5,846
Deferred income taxes 106 688
------- -------
Total current liabilities 13,007 15,494
Capitalized lease obligations,
excluding current installments 155 204
Deferred income taxes 2,154 1,572
------- -------
15,316 17,270
------- -------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 1,000,000 shares authorized, none issued;
150,000 shares designated as
Series A Junior Participating, $.01 par value; none issued -- --
Common stock, $.20 par value; 20,000,000 shares
authorized; 6,004,489 and 5,993,403 issued
and outstanding at September 29, 1996 and
June 30, 1996, respectively 1,201 1,199
Additional paid-in capital 6,677 6,627
Retained earnings 13,263 14,204
------- -------
Total stockholders' equity 21,141 22,030
------- -------
$36,457 $39,300
======= =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
2
<PAGE> 4
EMULEX CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
---------------------------
September 29, October 1,
1996 1995
------------- ----------
<S> <C> <C>
Net revenues $ 15,952 $ 10,448
Cost of sales 10,482 7,154
-------- --------
Gross profit 5,470 3,294
Operating expenses:
Engineering and development 2,500 3,043
Selling and marketing 2,079 2,973
General and administrative 1,243 1,236
Consolidation charges 1,280 --
-------- --------
Total operating expenses 7,102 7,252
-------- --------
Operating loss (1,632) (3,958)
Nonoperating income 206 90
-------- --------
Loss before income taxes (1,426) (3,868)
Income tax benefit (485) (387)
-------- --------
Net loss $ (941) $ (3,481)
======== ========
Net loss per common and common
equivalent share $ (0.16) $ (0.59)
======== ========
Weighted average number of common
and common equivalent shares 5,998 5,898
======== ========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
<PAGE> 5
EMULEX CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
---------------------------
Continuing Operations, September 29, October 1,
1996 1995
---- ----
<S> <C> <C>
Cash flows from operating activities:
Loss from continuing operations $ (941) $ (3,481)
Adjustments to reconcile net loss from continuing
operations to net cash used in operating activities:
Depreciation and amortization 711 541
Loss on disposal of property, plant and equipment 21 16
Provision for doubtful accounts 31 22
Changes in assets and liabilities:
Accounts receivable (962) 4,801
Inventories 2,885 (897)
Accounts payable (3,072) (3,585)
Accrued liabilities (806) (487)
Income tax receivable (143) 77
Deferred income taxes -- (387)
Prepaid expenses and other assets (97) (462)
-------- --------
Net cash used in operating activities (2,373) (3,842)
-------- --------
Cash flows from investing activities:
Net proceeds from sale of property, plant and equipment 1 124
Additions to property, plant and equipment (696) (551)
-------- --------
Net cash used in investing activities (695) (427)
-------- --------
Cash flows from financing activities:
Principal payments under capital leases (76) (60)
Proceeds from note payable to bank 2,000 --
Proceeds from issuance of common stock 52 325
-------- --------
Net cash provided by financing activities 1,976 265
Net cash used in continuing operations (1,092) (4,004)
Net cash used in discontinued operations -- (67)
-------- --------
Net decrease in cash and cash equivalents (1,092) (4,071)
Cash and cash equivalents at beginning of period 1,635 10,308
-------- --------
Cash and cash equivalents at end of period $ 543 $ 6,237
======== ========
Supplemental disclosures:
Cash paid during the period (related to continuing and discontinued operations)
for:
Interest $ 66 $ 5
Income taxes 1 32
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE> 6
EMULEX CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
1. In the opinion of the Company, the accompanying unaudited
condensed consolidated financial statements contain all
adjustments (which are normal recurring accruals) necessary to
present fairly the financial position as of September 29, 1996
and June 30, 1996, and the results of operations for the three
months ended September 29, 1996 and October 1, 1995 and the
statements of cash flows for the three months then ended.
Interim results for the three months ended September 29, 1996 are
not necessarily indicative of the results that may be expected
for the year ending June 29, 1997. The interim financial
statements should be read in conjunction with the Company's
Annual Report on Form 10-K for the fiscal year ended June 30,
1996. References to dollar amounts are in thousands, except
share data, unless otherwise specified.
2. Inventories
Inventories, net, are summarized as follows:
<TABLE>
<CAPTION>
September 29, June 30,
1996 1996
------------- ----------
<S> <C> <C>
Raw materials $ 6,412 $ 8,074
Work-in-process 2,590 1,844
Finished goods 2,784 4,753
------- -------
$11,786 $14,671
======= =======
</TABLE>
3. Net Income (Loss) per Share
Net income (loss) per common and common equivalent share was computed
based on the weighted average number of common and common equivalent
shares outstanding during the periods presented. The Company has granted
certain stock options which have been treated as common share equivalents
in computing both primary and fully diluted income per share. Common stock
equivalents have been excluded from the calculation of both primary and
fully diluted loss per share for the three months ended September 29, 1996
and October 1, 1995, as the effect would have been antidilutive. The
primary and fully diluted income (loss) per share computations are
approximately the same.
5
<PAGE> 7
Part I. Item 2.
EMULEX CORPORATION AND SUBSIDIARIES
Management's Discussion and Analysis of
Financial Condition and Results of Operations
(dollars in thousands)
SUBSEQUENT EVENTS
After the close of the first quarter of fiscal 1997, Emulex elected to end its
distribution agreement with Canon Sales Co., Inc. for its commercial networking
products in Japan; however, Emulex has received a new development agreement for
original equipment manufacturer ("OEM") printer servers from the parent
corporation, Canon Inc. The Company is currently reviewing other distributors to
carry its commercial products in the Japanese market.
FORWARD LOOKING STATEMENTS
Except for the historical information contained herein, the discussion in this
Form 10-Q contains certain forward-looking statements. The discussions
containing such forward-looking statements may be found in the material set
forth under "Subsequent Events" as well as within the Form 10-Q in general. In
addition, when used in this Form 10-Q, the words "forecasts", "projected",
"believes", "expects" and similar expressions are intended to identify
forward-looking statements. Actual future results could differ materially from
those described in the forward-looking statements as a result of factors
discussed in "Business Environment and Risk Factors" set forth herein, and in
the Company's most recently filed Annual Report on Form 10-K. The Company
cautions the reader, however, that these lists of risk factors may not be
exhaustive. The Company undertakes no obligation to publicly release the results
of any revisions to these forward-looking statements that may be made to reflect
any future events or circumstances.
RESULTS OF OPERATIONS
The following table sets forth the percentage of net revenues represented by
selected items from the Condensed Consolidated Statements of Operations. This
table should be read in conjunction with the Condensed Consolidated Financial
Statements included elsewhere herein.
<TABLE>
<CAPTION>
Percentage of Net Revenues
For the Three Months Ended:
--------------------------
September 29, October 1,
1996 1995
------------- ---------
<S> <C> <C>
Net revenues 100.0% 100.0%
Cost of sales 65.7 68.5
----- -----
Gross profit 34.3 31.5
Operating expenses:
Engineering and development 15.7 29.1
Selling and marketing 13.0 28.5
General and administrative 7.8 11.8
Consolidation charges 8.0 --
----- -----
Total operating expenses 44.5 69.4
----- -----
Operating loss (10.2) (37.9)
Nonoperating income 1.3 0.9
----- -----
Loss before income taxes (8.9) (37.0)
Income tax benefit (3.0) (3.7)
----- -----
Net loss (5.9)% (33.3)%
===== =====
</TABLE>
6
<PAGE> 8
NET REVENUES
Net revenues for the quarter ended September 29, 1996 increased $5,504, or 53
percent, from the comparable quarter a year earlier. This increase in net
revenues resulted primarily from higher sales to OEMs, which were approximately
$9,475 in the first quarter of the current fiscal year compared to $2,139 in the
comparable quarter a year ago. This increase was partially offset by a reduction
in distribution and end-user revenues of $1,070 and $762, respectively, from the
prior year's first quarter.
From a product line perspective, compared to the quarter a year earlier, printer
server revenues increased $4,814, or 142 percent, network access revenues
increased $891, or 20 percent, and other miscellaneous product lines increased
$217, or 24 percent. Additionally in the first quarter of fiscal 1996, the
Company sold $1,472 of memory devices that had been engineered out of certain
products. Revenues generated by the Company's emerging Fibre Channel products
increased to $1,186 compared to $132 in the previous year's first quarter.
Although Fibre Channel represented 7 percent of revenues in the first quarter of
fiscal 1997, the market is an emerging technology and there can be no assurance
that the Company's products will adequately meet the requirements of the market,
or achieve market acceptance. Further, the future revenues of the Fibre Channel
product line depend on the availability of other Fibre Channel products not
manufactured or sold by the Company including, but not limited to, gigabyte
Fibre Channel disk drives.
GROSS PROFIT
The gross profit percentage for the first quarter of the current year was 34
percent compared to 32 percent in the same period a year earlier. This increase
in gross profit is primarily attributable to a combination of higher volumes and
lower prices for components used in the Company's products.
OPERATING EXPENSES
During the first quarter of fiscal 1997, the Company initiated a consolidation
of its operations to reduce its ongoing expense base and focus its activities in
the Fibre Channel, printer server and wide area networking markets. Emulex's
remote access and host software businesses, previously headquartered out of a
Bellevue, Washington facility, have been relocated to Emulex headquarters in
Costa Mesa. In addition, the Company has downsized its Pacific Rim sales
organization and also made selected reductions at its manufacturing plant in
Dorado, Puerto Rico and at its corporate headquarters. The Company incurred a
charge of $1,280 in connection with this consolidation.
The consolidation charges included both actual costs incurred and accruals for
costs expected to be incurred for closing of the Bellevue, Australia, and Hong
Kong offices. The consolidation charges consist of approximately $795 for
severance, $234 for office rent, $151 for write-off of fixed assets and
approximately $100 for expenses incurred primarily for the transition of product
support to Costa Mesa. Total head count worldwide was reduced by approximately
36 employees or 12 percent.
Operating expenses for the quarter ended September 29, 1996 decreased by $150,
or 2 percent, in comparison to the comparable quarter a year earlier. Included
in the current quarter was the consolidation charge of $1,280. Excluding this
charge, operating expenses in the current quarter would have been $5,822. This
represents a decrease of $1,430, or 20 percent, from the comparable quarter a
year ago. Engineering and development expenses decreased $543, or 18 percent,
from the comparable quarter of fiscal 1996. Selling and marketing expenses
decreased $894, or 30 percent, compared to the comparable quarter a year
earlier. General and administrative expenses remained essentially flat at
approximately $1,200.
7
<PAGE> 9
LIQUIDITY AND CAPITAL RESOURCES
The Company has financed its recent working capital needs and capital
expenditure requirements from internally generated funds, its line of credit,
facilities leases and equipment leases. As of September 29, 1996, the Company
had cash and cash equivalents of $543, down $1,092 from June 30, 1996.
In addition to its cash balances, the Company has a line of credit of up to
$7,000 with Silicon Valley Bank. At the end of the first quarter of fiscal 1997,
the Company had a $2,000 borrowing outstanding under the line of credit. Under
the terms of the line of credit, the Company is required to grant Silicon Valley
Bank a security interest in its accounts receivable, inventories, equipment and
other property upon any borrowing. The line of credit with Silicon Valley Bank
requires the Company to satisfy certain financial and other covenants and
conditions, including prescribed levels of tangible net worth, profitability and
liquidity. In the event the Company fails to comply with any financial or other
covenant in its loan agreement with Silicon Valley Bank, the line of credit
could become unavailable to the Company. In addition, since borrowings have been
made under the line of credit, a failure to continue to satisfy such covenants
in the future would constitute an event of default, giving rise to the various
remedies available to a secured lender. At the end of the first quarter of
fiscal 1997, the Company was in compliance with all the terms of the line of
credit; however, there can be no assurance that the Company will continue to
satisfy the financial and other covenants and conditions of the line of credit
or that the line of credit will continue to be available to meet the Company's
liquidity requirements.
The Company believes that its existing cash balances, facilities and equipment
leases, anticipated cash flows from operating activities and borrowings under
its line of credit will be sufficient to support its working capital needs and
capital expenditure requirements for the next twelve months. However, the
Company has recently experienced reductions in revenue levels and significant
losses from operations. The Company's ability to meet its future liquidity
requirements is dependent upon its ability to operate profitably or, in the
absence thereof, to borrow on its line of credit and to arrange additional
financing. If the Company were to continue to experience losses at the rate
experienced in fiscal 1996 and the first quarter of fiscal 1997, additional debt
or equity financing would be required within three to nine months. There can be
no assurance that revenues will return to the levels experienced in prior years
or that the Company would be profitable at such revenue levels. Furthermore,
there can be no assurance that future requirements to fund operations will not
require the Company to make additional borrowing on its line of credit and seek
additional financing, or that such line of credit or additional financing will
be available on terms favorable to the Company and its stockholders, or at all.
BUSINESS ENVIRONMENT AND RISK FACTORS
Rapid Technological Change and New Product Development
The markets for the Company's products are characterized by rapidly changing
technology, evolving industry standards and frequent introductions of new
products and enhancements. The Company believes that its future success will
depend in large part on its ability to enhance its existing products and to
introduce new products on a timely basis to meet changes in customer
preferences, emerging technologies and evolving industry standards. There can be
no assurance that the Company will be successful in developing, manufacturing
and marketing new products or product enhancements that respond to technological
changes or evolving industry standards, that the Company will not experience
difficulties that could delay or prevent the successful development,
introduction and marketing of these products or that its new products will
adequately meet the requirements of the marketplace and achieve market
acceptance. Nor can there be any assurance that the Company will be able to
develop or license from third parties the underlying core technologies necessary
for new products and enhancements. Additionally, there can be no assurance that
services, products or technologies developed by others will not render the
Company's products or technologies uncompetitive or obsolete. If the Company is
unable, for technological or other reasons, to develop new products or
enhancements of existing products in a timely manner in response to changing
market conditions or customer preferences, the Company's business, results of
operations and financial condition would be materially and adversely affected.
8
<PAGE> 10
Early Stage of the Fibre Channel Market
The Company has invested and continues to invest substantially in the
engineering of products to address the Fibre Channel market, which is at an
early stage of development. In the first quarter of fiscal 1997, approximately
40 percent of the Company's engineering and development expenditures were
invested in Fibre Channel designs. The Company believes the projected Fibre
Channel market represents a significant portion of the opportunities for revenue
growth in the future; however, there can be no assurance that the Fibre Channel
market will continue to expand or that the Company's investment in Fibre Channel
will achieve a profitable return.
Competition
The markets for the Company's products are highly competitive and are
characterized by rapid technological advances, price erosion, frequent new
product introductions and evolving industry standards. The industry consists of
major domestic and international companies, many of which have substantially
greater financial, technical, marketing and distribution resources than the
Company, as well as emerging companies attempting to obtain a share of the
existing market. The Company's competitors continue to introduce products with
improved price/performance characteristics, and the Company will have to do the
same to remain competitive. The Company operates in a volatile and dynamic
market, and more aggressive market and product positioning by certain
competitors could have a material adverse effect on the Company's business,
results of operations and financial position.
Reliance on Third Party Suppliers
The Company relies on third party suppliers who supply the components used in
the Company's products. Most components are readily available from alternate
sources. However, the unavailability of certain components from current
suppliers, especially components custom designed for the Company, could result
in delays in the shipment of the Company's products as well as additional
expense associated with obtaining and qualifying a new supplier or redesigning
the Company's product to accept more readily available components. In addition,
certain key components used in the Company's products are available only from
single sources and the Company does not have long-term contracts ensuring the
supply of such components. As the Company typically attempts to maintain less
than 90 days supply of such components, there can be no assurance that
components will be available to meet the Company's future requirements at
favorable prices, if at all. The Company's future inability to obtain components
or to redesign its products to accept available components, in a timely manner,
could materially and adversely affect the Company's business and financial
condition. In addition, any significant increase in component prices or
inability to ship products due to a lack of components could adversely affect
the Company's results of operations.
International Operations
Sales in the United States accounted for approximately 60 percent of the
Company's net revenues in the first quarter of fiscal 1997, sales in Europe
accounted for approximately 37 percent of the Company's net revenues in the
first quarter of fiscal 1997 and sales in the PacRim accounted for 3 percent of
the Company's net revenues in the first quarter of fiscal 1997. The Company
expects that sales in the United States and Europe will continue to account for
a substantial majority of the Company's revenues for the foreseeable future.
There can be no assurance that the Company will achieve significant penetration
in other markets.
The Company's worldwide price list uses U.S. dollars in all markets. An increase
in the value of the U.S. dollar relative to foreign currencies would make the
Company's products more expensive and therefore potentially less competitive in
those markets. Additional risks inherent in the Company's international business
activities generally include unexpected changes in regulatory requirements,
tariffs and other trade barriers, costs and risks of localizing products for
foreign countries, longer accounts receivable payment cycles, potentially
adverse tax consequences, repatriation of earnings and the burdens of complying
with a wide variety of foreign laws. In addition, revenues of the Company earned
in various countries where the Company does business may be subject to taxation
by more than one jurisdiction,
9
<PAGE> 11
thereby adversely affecting the Company's earnings. There can be no assurance
that such factors will not have an adverse effect on the revenues from the
Company's future international sales and, consequently, the Company's results of
operations.
The Company's only manufacturing operation is located in Dorado, Puerto Rico, an
area which is subject to hurricanes at certain times of the year. Damage to this
facility or an interruption in the ability to receive components or ship
products to its customers could have a material adverse impact on the Company's
business, financial condition and operating results.
Dependence of Key Personnel
The Company's success depends to a significant degree on the performance and
continued service of its senior management and certain key employees.
Competition for such highly skilled employees with technical, management,
marketing, sales, product development and other specialized skills is intense,
and there can be no assurance that the Company will be successful in recruiting
and retaining such personnel. In addition, there can be no assurance that
employees will not leave the Company and, after leaving, compete against the
Company. The loss of key management, technical and sales personnel could have a
material adverse effect on the Company's business, financial condition and
operating results.
Fluctuations in Quarterly Operating Results
Because the Company generally ships products within a short period after receipt
of an order, the Company typically does not have a material backlog of unfilled
orders, and revenues in any quarter are substantially dependent on orders booked
in that quarter. Typically, the Company generates a large percentage of its
quarterly revenues in the last month of the quarter. Adding further to the
variability of sales are certain large OEM customers that tend to order
sporadically and volumes can vary significantly from quarter to quarter. A small
variation in the timing of orders is likely to adversely and disproportionately
affect the Company's quarterly results of operations as the Company's expense
levels are based, in part, on its expectations of future sales and only a small
portion of the Company's expenses vary directly with its sales. Therefore, the
Company may be unable to adjust spending in a timely manner to compensate for
any unexpected revenue shortfall. Accordingly, any significant shortfall of
demand in relation to the Company's quarterly expectations or any material delay
of customer orders could have an immediate and adverse impact on the Company's
quarterly results of operations and financial condition.
Recent History of Losses from Continuing Operations
The Company incurred losses from continuing operations of $9,288 in fiscal 1996,
and $941 in the first quarter of fiscal 1997. Results for the first quarter
included consolidation charges of $1,280. While the Company expects to return to
profitability, there can be no assurances that revenues will return to the
levels experienced in previous years or that the Company would be profitable at
such revenue levels.
Reliance on OEMs, Distributors and Key Customers
In the first quarter of fiscal 1997, the Company derived approximately 36
percent of its revenue from distributors and 59 percent from OEMs. The Company's
agreements with distributors and OEMs are typically non-exclusive and in many
cases may be terminated by either party without cause, and many of the Company's
distributors and OEMs carry competing product lines. Therefore, there can be no
assurance that any distributor or OEM will continue to purchase the Company's
products. The loss of important distributors or OEMs could adversely affect the
Company's business, results of operations and financial condition. Among the
Company's key customers, IBM Corporation, Xerox, and Tech Data Corporation
accounted for 16, 12 and 10 percent, respectively, of the Company's revenue in
the first quarter of fiscal 1997.
10
<PAGE> 12
Possible Volatility of Stock Price
As is the case with many technology based companies, the market price of the
Company's common stock has been, and is likely to continue to be, extremely
volatile. Factors such as new product introductions by the Company or its
competitors, fluctuations in the Company's quarterly operating results, the gain
or loss of significant contracts, pricing pressures and general conditions in
the computer market, and general events and circumstances beyond the Company's
control may have a significant impact on the market price of the Company's
common stock. In addition, the stock market recently has experienced significant
price and volume fluctuations which have particularly affected the market price
for many high technology companies like the Company.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit 27.1 Financial Data Schedule
(b) The registrant has not filed any reports on Form 8-K during the period for
which this report is filed.
11
<PAGE> 13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: November 11, 1996
EMULEX CORPORATION
By: /s/ Paul F. Folino
------------------------
Paul F. Folino
President and
Chief Executive Officer
By: /s/ Walter J. McBride
------------------------
Walter J. McBride
Sr. Vice President &
Chief Financial Officer
(Principal Financial &
Chief Accounting Officer)
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM EMULEX
CORPORATION AND SUBSIDIARIES' CONDENSED CONSOLIDATED BALANCE SHEET, STATEMENT OF
OPERATIONS AND STATEMENT OF CASH FLOWS FOR THE THREE MONTH PERIOD ENDED
SEPTEMBER 29, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-29-1997
<PERIOD-END> SEP-29-1996
<CASH> 543
<SECURITIES> 0
<RECEIVABLES> 13,924
<ALLOWANCES> 0
<INVENTORY> 11,786
<CURRENT-ASSETS> 28,772
<PP&E> 7,496
<DEPRECIATION> 0
<TOTAL-ASSETS> 36,457
<CURRENT-LIABILITIES> 13,007
<BONDS> 155
0
0
<COMMON> 1,201
<OTHER-SE> 19,940
<TOTAL-LIABILITY-AND-EQUITY> 36,457
<SALES> 15,952
<TOTAL-REVENUES> 15,952
<CGS> 10,482
<TOTAL-COSTS> 10,482
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,426)
<INCOME-TAX> (485)
<INCOME-CONTINUING> (941)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (941)
<EPS-PRIMARY> (0.16)
<EPS-DILUTED> (0.16)
</TABLE>
