Emulex Corp. Lists Drop of 41% in Quarter’s Profits

Blaming poor sales of its retail personal computer products, Emulex Corp. of Costa Mesa announced third-quarter profits of $1.3 million, a 41% plunge from the $2.2-million profit recorded last year by the computer equipment maker.

Revenues for the period ended March 29 were $25.8 million, down 5% from the $27.2 million posted last year.

For the first nine months of the fiscal year, the company had profits of $3.2 million, 38% below the $5.2 million posted the year before. Revenues were $76.4 million, down slightly from $77 million recorded in the prior year.

Fred B. Cox, Emulex chairman, said the lackluster third-quarter performance was caused largely by reduced sales of retail enhancement products for the IBM and IBM-compatible personal computers. In addition, he said the company discounted its prices on these products to reduce inventory, a move that cut profit margins.