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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

For the quarterly period ended September 29, 2002

OR

Commission File No.   0-11007

EMULEX CORPORATION

(714) 662-5600

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ X ] No [   ]

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes [ X ] No [   ]

As of November 5, 2002, the registrant had 81,950,169 shares of common stock outstanding.

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EMULEX CORPORATION AND SUBSIDIARIES

INDEX

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

EMULEX CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)

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EMULEX CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)

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EMULEX CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

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EMULEX CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements

1.		Summary of Significant Accounting Policies and Basis of Presentation
		In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (which are normal recurring accruals) necessary to present fairly the financial position as of September 29, 2002, and June 30, 2002, and the condensed consolidated statements of operations for the three months ended September 29, 2002, and September 30, 2001, and the condensed consolidated statements of cash flows for the three month periods then ended. Certain reclassifications have been made to the condensed consolidated balance sheet as of June 30, 2002, to conform to the presentation as of September 29, 2002. Interim results for the three months ended September 29, 2002, are not necessarily indicative of the results that may be expected for the year ending June 29, 2003. The interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2002.
		Effective July 1, 2002, the Company adopted Financial Accounting Standards Board (“FASB”) Statement (“Statement”) 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” under which the recoverability of long-lived assets is assessed by determining whether the carrying value of an asset can be recovered through projected undiscounted future operating cash flows over its remaining life. The amount of impairment, if any, is measured based on fair value, which is determined using projected discounted future operating cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.
2.		Inventories
		Inventories, net, are summarized as follows:

Starting in late September 2001, some of the Company’s major customers made announcements that general economic conditions, exacerbated by the increase in economic uncertainty in the aftermath of the terrorist events of September 11, 2001, were having a negative impact on their financial results. The announcements made, and forecasts received, indicated deteriorating demand for the Company’s one gigabit per second (“Gbps”) products as these customers were expected to migrate to two Gbps products for future purchases. As a result, the Company recorded an excess and obsolete inventory charge totaling $13.6 million during the first quarter of fiscal 2002. Subsequently, as a result of the sale of products for which a reserve had been recorded, the Company recorded a reduction of $0.2 million of this excess and obsolete inventory charge for the first three months of fiscal 2003 ended September 29, 2002. As of September 29, 2002, the remaining reserve for one Gbps products was $8.2 million. As with all inventory, the Company regularly compares forecasted demand for its one Gbps products against inventory on hand and open purchase commitments. Accordingly, the Company may have to increase excess and obsolete inventory reserves as forecasted demand changes. As of September 29, 2002, the Company had unreserved inventory on hand of approximately $4.1 million related to its one Gbps products.

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3.		Goodwill and Other Intangibles
		Goodwill and other intangibles, net, are as follows:

		Effective July 1, 2002, the Company adopted Statement 142. As a result, the Company ceased amortizing goodwill of $397.3 million beginning July 1, 2002. Included in goodwill is $1.8 million of assembled workforce that was reclassified to goodwill effective July 1, 2002. In conjunction with the adoption of Statement 142, the Company completed its transitional goodwill impairment test for its one reporting unit during the three months ended September 29, 2002, with no impairment charges resulting. The goodwill will be tested for impairment at least annually.
		The intangible assets subject to amortization are being amortized on a straight-line basis over the following estimated useful lives:

Aggregated amortization expense for the three months ended September 29, 2002, was $1.5 million and for the next five fiscal years is expected to be (in thousands):

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The following table presents the impact on net income (loss) and net income (loss) per share had Statement 142 been in effect for the three months ended September 30, 2001.