Emulex Corp has a market cap of $1.01 billion; its shares were traded at around $11.58 with a P/E ratio of 33.1 and P/S ratio of 2.6. Hedge Fund Gurus that owns ELX: Bruce Kovner of Caxton Associates, Louis Moore Bacon of Moore Capital Management, LP, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, George Soros of Soros Fund Management LLC. Mutual Fund and Other Gurus that owns ELX: Mario Gabelli of GAMCO Investors, Mario Gabelli of GAMCO Investors, Chuck Royce of Royce& Associates.
Highlight of Business Operations:make prepayments of expected royalties to a U.S. subsidiary, the first of which was paid before the end of fiscal 2008 in the amount of approximately $131.0 million for expected royalties relating to fiscal 2009 through 2015. In the fourth quarter of fiscal 2010, the subsidiary made the second prepayment of approximately $6.5 million for expected royalties relating to fiscal 2011 through 2015. These global initiatives are expected to continue to reduce our effective tax rate. During the second quarter of fiscal 2011 one of our domestic entities entered into a platform contribution transaction with one of our international subsidiaries to license the recently acquired ServerEngines technology for approximately $111.5 million. While these global initiatives are expected to continue to reduce our effective tax rate beginning with fiscal year 2012, the platform contribution transaction resulted in an incremental tax expense of approximately $39.3 million. Our cash balances and investments are held in numerous locations throughout the world. The cash and investments held outside of the U.S. are expected to increase primarily in our Isle of Man and Ireland subsidiaries. Substantially all of the amounts held outside of the U.S. will be available for repatriation at any time, but under current law, repatriated funds would be subject to U.S. federal income taxes, less applicable foreign tax credits.
Net Revenues. Net revenues for the second quarter of fiscal 2011 ended December 26, 2010, increased by approximately $5.7 million, or 5%, to approximately $114.0 million, compared to approximately $108.3 million for the same quarter of fiscal 2010 ended December 27, 2009.
Cost of sales includes the cost of producing, supporting, and managing our supply of quality finished products. Cost of sales also included approximately $8.8 million and $4.7 million of amortization of technology intangible assets for the three months ended December 26, 2010 and December 27, 2009, respectively, with approximately $4.3 million in the three months ended December 26, 2010 being related to the ServerEngines acquisition. Approximately $0.4 million and $0.3 million of share-based compensation expense was included in cost of sales for the three months ended December 26, 2010 and December 27, 2009, respectively.
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