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Warning sinks Emulex
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February 12, 2001: 10:32 a.m. ET
Data-storage equipment maker stock cut nearly in half after warning
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NEW YORK (CNNfn) - Shares of Emulex Corp., which makes components that connect computer systems to network storage devices, plunged nearly 50 percent Monday morning after the company warned its fiscal third-quarter earnings could miss Wall Street expectations due to order delays.
 The Costa Mesa, Calif.-based company had for some time assured investors it would meet earnings estimates of 23 cents a share. But in a conference call late Friday, it said a recent spate of order delays could cause its quarterly revenue and earnings to miss estimates.
The news sent the stock plunging $37.34 to $40.16 in early morning trading, marking the second time in about six months the company's shares have fallen so precipitously.
Emulex shares fell more than 50 percent on Aug. 25, 2000, after a bogus press release containing a series of damaging claims about the company was circulated on the Internet.
In Friday's conference call, the company said it had begun to see order deferrals for its fiber channel products -- adapters and hubs that provide higher-performance connections for computer networks.
Emulex (EMLX: Research, Estimates) said it still could meet targets if the current level of deferrals does not worsen.
Wall Street analysts on average expected the company to report a third-quarter profit of 23 cents a share on revenue of about $75.3 million, according to research firm First Call. A year ago it earned 10 cents a share on revenue of $36.5 million.
Other stocks in the data-storage sector also fell on Emulex's news, including Brocade Communications (BRCD: Research, Estimates), which fell $11.25 to $62.88; QLogic Corp. (QLGC: Research, Estimates), down $21 to $49.38; and Network Appliance Inc. (NTAP: Research, Estimates), down $2.50 to $35.50.
-- Reuters contributed to this report. 
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