Feeds

Emulex execs in boardroom-chair-swap as investors circle

VCs want shareholder payout, to absolutely no one's surprise

Internet Security Threat Report 2014

Emulex execs have performed a three-way exec and boardroom chair swap as activist investors look for ways to squeeze the company for a big payday.

Board chairman Paul Folino reverts to being a director, CEO Jim McCluney becomes executive chairman, and president and chief operating officer Jeff Benck becomes CEO and president. The accompanying canned quotery was everything you'd expect - with no reason given for McCluney stepping back from the CEO line-of-fire.

McCluney, CEO since 2006, said: "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."

Folino said: "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. As Jim transitions to his new role, I look forward to continuing my participation on the board."

Benck said: "I would like to thank Paul, Jim and the entire board of directors for their confidence and support. 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."

There is of course the option of selling Emulex, and the company has reportedly hired Goldman Sachs to look for a buyer.

Three activist investors have built up stakes in the company following a drop in its stock price since it rebuffed a Broadcom acquisition attempt in 2009 and bought Ethernet analysis company Endace earlier this year. According to the activist investors Altai Capital, Elliott Management and Starboard, this was a terrible waste of money which should have gone to shareholders instead.

Emulex announced preliminary fourth fiscal 2013 revenues of $119m to $120m, which, at the mid-point, would mean fiscal 2013 revenues of $477.7m, some $22m down on the previous year's $501.8m.

It anticipates making an unquantified loss for the fourth quarter, on the GAAP measure. At the nine month point it's showing a loss of $670,000 so a fourth quarter loss would produce a loss-making full year, the third in a row.

A private equity firm might buy the business and sell it off in three bits: Fibre Channel HBAs, Ethernet chippery, and the Endace Ethernet analysis business. ®

Internet Security Threat Report 2014

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.