Storage-equipment maker Emulex Corp posted an adjusted third-quarter profit and said its board was reviewing an unsolicited bid by chipmaker Broadcom Corp.
Emulex, which makes components used to connect computers to remote storage equipment, said on a conference call with analysts that it would be premature to speculate on the board's decision on the deal.
Emulex forecast weak results for the current quarter and said it had cut 43 jobs since the end of the third quarter to reduce expenses.
This meant a reduction of 9 percent jobs since the beginning of the fiscal year, the company said on the call.
For the quarter ended March 29, the company posted a net loss of $6 million, or 7 cents a share, compared with a net income of $15.5 million, or 19 cents a share, a year ago.
Excluding items, it earned 5 cents a share. Revenue fell 39 percent to $78.6 million.
Analysts on average expected earnings of 4 cents a share, before items, on revenue of $80.7 million, according to Reuters Estimates.
Our focus on controllable expenses and maintaining a strong balance sheet resulted in lower inventories, lower accounts receivables and an increase in our cash balances by over $17 million during the (third) quarter, CEO Jim McCluney said in a statement.
Total operating expenses dipped about 9 percent.
For the fourth quarter, the company expects to earn 1 cent to 5 cents a share, before items, on revenue of $73 million to $80 million.
Analysts on average were looking for a profit of 6 cents a share, excluding items, on revenue of $82.7 million.
Emulex's top customers include EMC Corp (EMC.N), International Business Machines Corp (IBM.N) and Hewlett-Packard Co (HPQ.N).
Broadcom made an unsolicited bid to buy Emulex for $764 million earlier this month and is suing the company for adopting a poison pill to prevent a hostile takeover.
Shares of the Costa Mesa, California-based company, were trading at $10.80 after the bell. They closed at $10.36 Monday on the New York Stock Exchange.
For the alerts, please double-click [ID:nWNAB8751] (Reporting by Mansi Dutta in Bangalore; Editing by Himani Sarkar)