A Weak End for Emulex
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COSTA MESA — Shares of Emulex Corp. were battered the last two days of the week, dropping 24% over the period, after the company disclosed midweek that it would take $13 million in charges and close its Puerto Rico plant.
The manufacturer of computer network products disclosed the charge to its fiscal third quarter after the market closed Wednesday. It said 130 full-time employees and 48 temporary workers were fired as part of the plant closing.
Wall Street reacted harshly Thursday, dropping the stock price by $1.88 a share--16%--to close at $9.88 in Nasdaq trading. On Friday, the stock dropped an additional 10%, or $1 a share, to close at $8.88.
Paul Folino, the company’s chief executive, attributed Friday’s decline to lower earnings estimates by analysts. “I think it has stabilized now,” he said.
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