Exhibit 99.01
 
 FOR IMMEDIATE RELEASE
 Investor Contact:
    
    Press Contact:Frank Yoshino
    
    Robin AustinVice President, Finance
    
    Director, Public Relations(714) 885-3697
    
    (714) 885-3462
 EMULEX ANNOUNCES FOURTH QUARTER
AND FISCAL 2008 RESULTS
 
  Fourth Quarter Highlights
 
    
    Total net revenues of $112.8 million   a decrease of 11% year-over-year
    
    Host Server Products net revenues of $84.4 million  75% of total net revenues
    
    Embedded Storage Products net revenues of $28.3 million  25% of total net
revenues
    
    GAAP gross margin of 63% and non-GAAP gross margin of 68%
    
    GAAP operating income of $8.8 million, or 8% of total net revenues, and non-GAAP
operating income of $24.7 million, or 22% of net revenues
    
    GAAP Net Loss Per Share of $0.61 and non-GAAP diluted Earnings Per Share of
$0.22
    
    Cash, cash equivalents and investments of $350.3 million
    
    Inventory turnover of 8.5 times
    
    Days Sales Outstanding of 45 days




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##### 



2008 Full Year Highlights
 
    
    Total net revenues of $488.3 million   an increase of 4% year-over-year
    
    Host Server Products net revenues of $352.7 million  72% of total net revenues
    
    Embedded Storage Products net revenues of $134.9 million  28% of total net
revenues
    
    GAAP gross margin of 62% and non-GAAP gross margin of 67%
    
    GAAP operating income of $66.3 million, or 14% of total net revenues, and
non-GAAP operating income of $131.9 million, or 27% of net revenues
    
    GAAP Net Loss Per Share of $0.09 and non-GAAP diluted EPS of $1.13
 Financial Results




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##### 



th
  Business Outlook




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About Emulex
 http://www.emulex.com.
 Note Regarding Non-GAAP Financial Information




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##### 



Non-GAAP gross margin




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##### 



Non-GAAP operating income




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##### 



Non-GAAP operating expenses
  Non-GAAP net income and non-GAAP diluted earnings per share




---



##### 








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##### 








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##### 



Three Months Ended
    
    Year EndedJune 29,
    
    
    July 1,
    
    
    June 29,
    
    
    July 1,2008
    
    
    2007
    
    
    2008
    
    
    2007Net revenues
    
    $
    112,763
    
    
    $
    126,268
    
    
    $
    488,301
    
    
    $
    470,187Cost of sales
    
    
    41,237
    
    
    
    49,226
    
    
    
    187,077
    
    
    
    195,579Gross profit
    
    
    71,526
    
    
    
    77,042
    
    
    
    301,224
    
    
    
    274,608Operating expenses:Engineering and development
    
    
    33,437
    
    
    
    31,346
    
    
    
    129,232
    
    
    
    117,833Selling and marketing
    
    
    15,689
    
    
    
    12,843
    
    
    
    57,946
    
    
    
    47,870General and administrative
    
    
    11,497
    
    
    
    9,586
    
    
    
    38,531
    
    
    
    31,416In-process research and development
    
    
    
    
    
    
    (600
    )
    
    
    
    
    
    
    19,225Impairment of other intangible assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,001Amortization of other intangible assets
    
    
    2,089
    
    
    
    2,531
    
    
    
    9,260
    
    
    
    12,082Total operating expenses
    
    
    62,712
    
    
    
    55,706
    
    
    
    234,969
    
    
    
    230,427Operating income
    
    
    8,814
    
    
    
    21,336
    
    
    
    66,255
    
    
    
    44,181Nonoperating income (loss):Interest income
    
    
    2,018
    
    
    
    3,472
    
    
    
    11,672
    
    
    
    20,000Interest expense
    
    
    (2
    )
    
    
    6
    
    
    
    (27
    )
    
    
    (1,179
    )Other income (loss), net
    
    
    (52
    )
    
    
    (4,935
    )
    
    
    17
    
    
    
    (3,919
    )Total nonoperating income (loss)
    
    
    1,964
    
    
    
    (1,457
    )
    
    
    11,662
    
    
    
    14,902Income before income taxes
    
    
    10,778
    
    
    
    19,879
    
    
    
    77,917
    
    
    
    59,083Income tax provision
    
    
    61,185
    
    
    
    6,717
    
    
    
    84,988
    
    
    
    29,649Net income (loss)
    
    $
    (50,407
    )
    
    $
    13,162
    
    
    $
    (7,071
    )
    
    $
    29,434Net income (loss) per share:Basic
    
    $
    (0.61
    )
    
    $
    0.16
    
    
    $
    (0.09
    )
    
    $
    0.35Diluted
    
    $
    (0.61
    )
    
    $
    0.15
    
    
    $
    (0.09
    )
    
    $
    0.34Number of shares used in per share
computations:Basic
    
    
    82,358
    
    
    
    83,830
    
    
    
    82,147
    
    
    
    84,545Diluted
    
    
    82,358
    
    
    
    86,295
    
    
    
    82,147
    
    
    
    89,089




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##### 



June 29,
    
    July 1,2008
    
    2007AssetsCurrent assets:Cash and cash equivalents
    
    $
    217,017
    
    
    $
    69,036Investments
    
    
    133,182
    
    
    
    202,288Accounts and other receivables, net
    
    
    61,634
    
    
    
    67,529Inventories
    
    
    19,336
    
    
    
    28,973Prepaid expenses
    
    
    5,105
    
    
    
    4,114Deferred income taxes
    
    
    20,773
    
    
    
    27,114Total current assets
    
    
    457,047
    
    
    
    399,054Property and equipment, net
    
    
    73,580
    
    
    
    64,294Investments
    
    
    150
    
    
    
    Intangible assets, net
    
    
    155,142
    
    
    
    170,689Deferred income taxes
    
    
    5,481
    
    
    
    Other assets
    
    
    7,656
    
    
    
    25,440$
    699,056
    
    
    $
    659,477Liabilities and Stockholders EquityCurrent liabilities:Accounts payable
    
    $
    23,714
    
    
    $
    19,761Accrued liabilities
    
    
    26,363
    
    
    
    29,483Income taxes payable
    
    
    37,528
    
    
    
    21,285Total current liabilities
    
    
    87,605
    
    
    
    70,529Other liabilities
    
    
    3,633
    
    
    
    802Deferred income taxes
    
    
    
    
    
    
    6,239Accrued taxes
    
    
    31,979
    
    
    
    Total liabilities
    
    
    123,217
    
    
    
    77,570Total stockholders equity
    
    
    575,839
    
    
    
    581,907$
    699,056
    
    
    $
    659,477




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##### 



Historical Net Revenues by Channel and Territory:
 Q4 FY 2008
    
    % Total
    
    Q4 FY 2007
    
    % Total($000s)
    
    Revenues
    
    Revenues
    
    Revenues
    
    Revenues
    
    % ChangeRevenues from OEM customers
    
    $
    88,617
    
    
    
    79
    %
    
    $
    90,070
    
    
    
    71
    %
    
    
    (2
    %)Revenues from distribution
    
    
    23,945
    
    
    
    21
    %
    
    
    36,207
    
    
    
    29
    %
    
    
    (34
    %)Other
    
    
    201
    
    
    nm
    
    
    (9
    )
    
    nm
    
    nmTotal net revenues
    
    $
    112,763
    
    
    
    100
    %
    
    $
    126,268
    
    
    
    100
    %
    
    
    (11
    %)United States
    
    $
    46,054
    
    
    
    41
    %
    
    $
    61,086
    
    
    
    48
    %
    
    
    (25
    %)Pacific Rim countries
    
    
    28,485
    
    
    
    25
    %
    
    
    26,116
    
    
    
    21
    %
    
    
    9
    %Europe and rest of world
    
    
    38,224
    
    
    
    34
    %
    
    
    39,066
    
    
    
    31
    %
    
    
    (2
    %)Total net revenues
    
    $
    112,763
    
    
    
    100
    %
    
    $
    126,268
    
    
    
    100
    %
    
    
    (11
    %)
  Summary of Stock-based Compensation:
 Three Months Ended
    
    Year EndedJune 29,
    
    July 1,
    
    June 29,
    
    July 1,($000s)
    
    2008
    
    2007
    
    2008
    
    2007Cost of sales
    
    $
    313
    
    
    $
    271
    
    
    $
    1,320
    
    
    $
    1,065Engineering & development
    
    
    3,013
    
    
    
    3,146
    
    
    
    12,031
    
    
    
    12,897Selling & marketing
    
    
    1,340
    
    
    
    1,242
    
    
    
    5,580
    
    
    
    5,556General & administrative
    
    
    3,214
    
    
    
    2,044
    
    
    
    10,071
    
    
    
    8,512Total stock-based compensation
    
    $
    7,880
    
    
    $
    6,703
    
    
    $
    29,002
    
    
    $
    28,030
 Reconciliation of GAAP gross margin to non-GAAP gross margin:
 Three Months Ended
    
    Year EndedJune 29,
    
    July 1,
    
    June 29,
    
    July 1,2008
    
    2007
    
    2008
    
    2007GAAP gross margin
    
    
    63.4
    %
    
    
    61.0
    %
    
    
    61.7
    %
    
    
    58.4
    %Items excluded from GAAP gross margin
to calculate non-GAAP gross margin:Stock-based compensation
    
    
    0.3
    %
    
    
    0.2
    %
    
    
    0.3
    %
    
    
    0.2
    %Amortization of intangibles
    
    
    4.2
    %
    
    
    5.8
    %
    
    
    4.7
    %
    
    
    5.6
    %Impairment of intangible assets
    
    
    
    
    
    
    0.1
    %
    
    
    0.6
    %
    
    
    0.0
    %Additional cost on sell through of
stepped up inventory
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.4
    %Non-GAAP gross margin
    
    
    67.9
    %
    
    
    67.1
    %
    
    
    67.3
    %
    
    
    64.6
    %




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##### 



Reconciliation of GAAP operating expenses to non-GAAP operating expenses:
 Three Months Ended
    
    Year EndedJune 29,
    
    July 1,
    
    June 29,
    
    July 1,($000s)
    
    2008
    
    2007
    
    2008
    
    2007GAAP operating expenses, as presented
above
    
    $
    62,712
    
    
    $
    55,706
    
    
    $
    234,969
    
    
    $
    230,427Items excluded from GAAP operating
expenses to calculate non-GAAP operating
expenses:Stock-based compensation
    
    
    (7,567
    )
    
    
    (6,432
    )
    
    
    (27,682
    )
    
    
    (26,965
    )Amortization of other intangibles
    
    
    (2,089
    )
    
    
    (2,531
    )
    
    
    (9,260
    )
    
    
    (12,082
    )Severance and associated costs
    
    
    (1,224
    )
    
    
    
    
    
    
    (1,224
    )
    
    
    Impairment of other intangible assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,001
    )In-process research and development
    
    
    
    
    
    
    600
    
    
    
    
    
    
    
    (19,225
    )Impact on operating expenses
    
    
    (10,880
    )
    
    
    (8,363
    )
    
    
    (38,166
    )
    
    
    (60,273
    )Non-GAAP operating expenses
    
    $
    51,832
    
    
    $
    47,343
    
    
    $
    196,803
    
    
    $
    170,154
 Reconciliation of GAAP operating income to non-GAAP operating income:
 Three Months Ended
    
    Year EndedJune 29,
    
    July 1,
    
    June 29,
    
    July 1,($000s)
    
    2008
    
    2007
    
    2008
    
    2007GAAP operating income as presented
above
    
    $
    8,814
    
    
    $
    21,336
    
    
    $
    66,255
    
    
    $
    44,181Items excluded from GAAP operating
income to calculate non-GAAP operating
income:Stock-based compensation
    
    
    7,880
    
    
    
    6,703
    
    
    
    29,002
    
    
    
    28,030Amortization of intangibles
    
    
    6,820
    
    
    
    9,816
    
    
    
    32,302
    
    
    
    37,888Severance and associated costs
    
    
    1,224
    
    
    
    
    
    
    
    1,224
    
    
    
    Impairment of other intangible assets
    
    
    
    
    
    
    175
    
    
    
    3,097
    
    
    
    2,176In-process research and development
    
    
    
    
    
    
    (600
    )
    
    
    
    
    
    
    19,225Additional cost on sell through of
stepped up inventory
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,036Impact on operating income
    
    
    15,924
    
    
    
    16,094
    
    
    
    65,625
    
    
    
    89,355Non-GAAP operating income
    
    $
    24,738
    
    
    $
    37,430
    
    
    $
    131,880
    
    
    $
    133,536




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##### 



Reconciliation of GAAP net income (loss) to non-GAAP net income:
 Three Months Ended
    
    Year EndedJune 29,
    
    July 1,
    
    June 29,
    
    July 1,($000s)
    
    2008
    
    2007
    
    2008
    
    2007GAAP net income (loss) as presented above
    
    $
    (50,407
    )
    
    $
    13,162
    
    
    $
    (7,071
    )
    
    $
    29,434Items excluded from GAAP net income (loss)
to calculate non-GAAP net income:Stock-based compensation
    
    
    7,880
    
    
    
    6,703
    
    
    
    29,002
    
    
    
    28,030Amortization of intangibles
    
    
    6,820
    
    
    
    9,816
    
    
    
    32,302
    
    
    
    37,888Severance and associated costs
    
    
    1,224
    
    
    
    
    
    
    
    1,224
    
    
    
    Impairment of other intangible assets
    
    
    
    
    
    
    175
    
    
    
    3,097
    
    
    
    2,176In-process research and development
    
    
    
    
    
    
    (600
    )
    
    
    
    
    
    
    19,225Additional cost on sell through of stepped
up inventory
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,036Net recovery related to a previous
impairment of a strategic investment
and associated note
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (819
    )Net charge related to an impairment of
strategic investment
    
    
    
    
    
    
    4,975
    
    
    
    
    
    
    
    4,975Income tax effect of above items
    
    
    (5,744
    )
    
    
    (4,841
    )
    
    
    (22,013
    )
    
    
    (22,123
    )Charges related to globalization initiatives
    
    
    58,467
    
    
    
    
    
    
    
    58,467
    
    
    
    Impact on
net income (loss)
    
    
    68,647
    
    
    
    16,228
    
    
    
    102,079
    
    
    
    71,388Non-GAAP net income
    
    $
    18,240
    
    
    $
    29,390
    
    
    $
    95,008
    
    
    $
    100,822




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##### 



Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share:
 Three Months Ended
    
    Year EndedJune 29,
    
    July 1,
    
    June 29,
    
    July 1,(shares in 000s)
    
    2008
    
    2007
    
    2008
    
    2007GAAP diluted
earnings (loss) per share as presented above
    
    $
    (0.61
    )
    
    $
    0.15
    
    
    $
    (0.09
    )
    
    $
    0.34Items excluded from diluted GAAP
earnings (loss) per share to calculate
diluted non-GAAP earnings per share,
net of tax effect:Stock-based compensation
    
    
    0.06
    
    
    
    0.07
    
    
    
    0.24
    
    
    
    0.24Amortization of intangibles
    
    
    0.05
    
    
    
    0.07
    
    
    
    0.24
    
    
    
    0.27Severance and associated costs
    
    
    0.01
    
    
    
    
    
    
    
    0.01
    
    
    
    Impairment of other intangible assets
    
    
    
    
    
    
    0.00
    
    
    
    0.02
    
    
    
    0.01In-process research and development
    
    
    
    
    
    
    (0.01
    )
    
    
    
    
    
    
    0.22Additional cost on sell through of
stepped up inventory
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.01Net recovery related to a previous
impairment of a strategic investment
and associated note
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.01
    )Net charge related to an impairment of
strategic investment
    
    
    
    
    
    
    0.06
    
    
    
    
    
    
    
    0.06Charges related to globalization initiatives
    
    
    0.71
    
    
    
    
    
    
    
    0.71
    
    
    
    Impact on diluted earnings (loss)
per share
    
    
    0.83
    
    
    
    0.19
    
    
    
    1.22
    
    
    
    0.80Non-GAAP diluted earnings per share
    
    $
    0.22
    
    
    $
    0.34
    
    
    $
    1.13
    
    
    $
    1.14Diluted shares used in non-GAAP
per share computations
    
    
    83,980
    
    
    
    86,295
    
    
    
    83,980
    
    
    
    89,089




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##### 



Forward-Looking Diluted Earnings per Share Reconciliation:
 Guidance forThree MonthsEndingSeptember 28,2008Non-GAAP diluted earnings per share guidance
    
    $
    0.18- $0.20Items excluded, net of tax, from non-GAAP diluted earnings
per share to calculate GAAP diluted earnings per share guidance:Amortization of intangibles
    
    
    0.05Stock-based compensation
    
    
    0.05Severance and associated costs
    
    
    0.02Charges related to globalization initiatives
    
    
    0.06GAAP diluted earnings per share guidance
    
    $
    0.00 - $0.02
 Forward-Looking Gross Margin Reconciliation:
 Guidance forThree MonthsEndingSeptember 28,2008Non-GAAP gross margin guidance
    
    
    67
    %Items excluded from non-GAAP gross margin to calculate
GAAP gross margin guidance:Amortization of intangibles
    
    
    4
    %Stock-based compensation
    
    
    0
    %GAAP gross margin guidance
    
    
    63
    %