Emulex (ELX) Appoints COO Benck as CEO; Prelim. Q4 Guidance Falls In-Line

July 15, 2013 5:15 PM EDT
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Total operating expenses: 120M

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Emulex Corporation (NYSE: ELX) announced that its board of directors has unanimously approved a leadership succession that will ensure a seamless transition and continued strong leadership at Emulex. As part of this, Jeffrey W. Benck, Emulex’s current president and chief operating officer (COO), has been appointed president and chief executive officer (CEO) of Emulex and a member of the board of directors, effective immediately. James M. McCluney, who has served as Emulex’s CEO since 2006, has been named executive chairman of the board, also effective immediately. Paul Folino will step down from his role as chairman and will continue as a director.

Mr. Benck joined Emulex in 2008 as COO, and was promoted to president in 2010. He has been instrumental in driving the company’s Ethernet strategy, customer and market expansion. During his time as CEO, Mr. McCluney has successfully transformed Emulex’s leading product offerings, expanded the business through acquisitions and organic initiatives, while leading the company through numerous economic and strategic events.

“As chief executive officer of Emulex for the past seven years, one of my key responsibilities was to build a strong leadership team. Having worked closely with Jeff over the past five years, I am confident that he and the current senior management team will continue to drive success for the company,” stated Jim McCluney. “I will be actively involved in the business as the executive chairman of the board, working closely with Jeff and the management team to drive shareholder value while focusing on our long-term strategic plan. I also want to thank Paul Folino for his support and leadership as chairman of the board, and I look forward to working closely with him in my new role.”

“As the chairman of the board, it has been my pleasure to work with both Jim and Jeff on this succession plan, which has been in process for several years,” stated Paul Folino. “As Jim transitions to his new role, I look forward to continuing my participation on the board.”

“I would like to thank Paul, Jim and the entire board of directors for their confidence and support,” stated Jeff Benck, chief executive officer, Emulex. “Emulex is well-positioned to execute on our strategic vision and continue delivering value to our shareholders. I am grateful for the opportunity to lead this great company and I am excited about our market opportunities.”

Preliminary June Quarter Results

Preliminary results for the fourth quarter include total net revenues of $119 to $120 million, which is at the midpoint of our May guidance of $118 to $122 million. Preliminary estimated Non-GAAP diluted earnings per share for the quarter are also expected to be in line with our May guidance of $0.11 to $0.13 per share. On a GAAP basis, certain valuation work, including the valuation and purchase price allocation associated with the Endace acquisition, are not yet complete. Therefore, Emulex is unable to estimate or comment on GAAP loss per share for the quarter at this time.

** The Street sees revs of $119.7 million and EPS of $0.12.

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