Needham & Company maintains a 'Buy' on Emulex (ELX); F4Q11 Slight Beat; Reducing Outlook as Widely Anticipated

Needham & Company maintains a 'Buy' on Emulex (NYSE: ELX) price target lowered from $12 to $10.

Needham analyst says, "ELX is achieving solid (albeit slower than it had projected) growth in 10GE/converged networking on top of a relatively stable revenue base in fiber channel and embedded products (ESP). ELX has broad design wins in 10GE including LOM (ie. HP G7), NIC, iSCSI and FCoE. ESP has bottomed and appears relatively stable on design ramps (SOC442 and 10GE). ELX has implemented OPEX efficiency plan, which should result ~$2M/q OPEX reduction (mostly R&D in ESP) helping to drive EPS expansion." (Needham lowers FY12 EPS estimate from $0.74 to $0.62)

For more ratings news on Emulex click here and for the rating history of Emulex click here.

Shares of Emulex closed at $7.25 yesterday.

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