(RTTNews) - Storage networking infrastructure provider Emulex Corp. (ELX: News ), Thursday reported decline in profit for the first quarter citing lower revenues. However, adjusted earnings for the quarter came in ahead of analyst's consensus. Looking forward, the company provided guidance for the second quarter.

The Costa Mesa, California based company announced that its first quarter net income was $3.84 million or $0.05 per share, compared with net income of $7.5 million or $0.09 per share last year.

Non-GAAP net income declined to $6.92 million or $0.08 per share from $18.36 million or $0.22 per share in the year ago quarter. On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.06 per share. Analysts' estimates typically exclude special items.

Total net revenues for the quarter were $85.53 million, down 23% from $111.70 million in the comparable quarter last year. Analysts anticipated the company to report revenues of $81.26 million for the quarter.

Revenues from the company's U.S. operations were 33% lesser year-on-year at $26.76 million from $39.8 million, revenues from international operations also declined significantly, contributing to the 23% decline in total revenues from the year-ago period.

Despite the decline in direct expenses to $33.42 million from $41.74 million and the reduction in operating expenses to $58.28 million from $60.8 million, the company reported an operating loss of $6.18 million compared with operating income of $9.15 million last year.
For the second quarter fiscal 2010, Emulex expects total net revenues in the range of $88 million to $92 million. The company expects non-GAAP earnings per share between $0.10 and $0.12 for the second quarter.

On a GAAP basis, Emulex expects a loss per share of $0.03 - $0.05 for the second quarter. The company noted that the GAAP estimates reflect approximately $0.15 per share of charges including a litigation associated with Broadcom's unsolicited takeover proposal.

Analysts currently expect the company to report earnings of $0.10 per share on revenues of $86.84 million for the second-quarter.

ELX finished Thursday's regular trade at $11.18, up 24 cents on a volume of 2.55 million shares on the NYSE.

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by RTT Staff Writer

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