Welcome!

Python Authors: Pat Romanski, Jyoti Bansal, Donald Meyer, Liz McMillan, Elizabeth White

News Feed Item

QLogic Reports Third Quarter Results for Fiscal Year 2013

QLogic Corp. (Nasdaq:QLGC), a leading supplier of high performance network infrastructure solutions, today announced its third quarter financial results for the period ended December 30, 2012.

Third Quarter Highlights

  • Net revenue: $119.4 million
  • GAAP income from continuing operations: $13.7 million or $0.15 per diluted share
  • Non-GAAP income from continuing operations: $18.3 million or $0.20 per diluted share
  • Operating margin: 12.1% GAAP, 18.1% non-GAAP
  • Cash and marketable securities: $495.2 million as of December 30, 2012
  • Cash generated from operations: $32.7 million

Financial Results

Net revenue for the third quarter of fiscal 2013 was $119.4 million compared to $142.8 million in the same quarter last year. Revenue from Host Products was $89.8 million during the third quarter of fiscal 2013 compared to $111.8 million in the same quarter last year. Revenue from Network Products was $20.1 million during the third quarter of fiscal 2013 compared to $18.5 million in the same quarter last year. Revenue from Silicon Products was $9.6 million during the third quarter of fiscal 2013 compared to $12.4 million in the same quarter last year.

Income from continuing operations on a GAAP basis for the third quarter of fiscal 2013 was $13.7 million, or $0.15 per diluted share, compared to $29.2 million, or $0.29 per diluted share, for the third quarter of fiscal 2012. Income from continuing operations on a non-GAAP basis for the third quarter of fiscal 2013 was $18.3 million, or $0.20 per diluted share, compared to $34.5 million, or $0.34 per diluted share, for the third quarter of fiscal 2012.

“During the December quarter, we reported financial results that exceeded our expectations. We delivered revenue of $119.4 million and non-GAAP income from continuing operations per diluted share of $0.20, both above our original guidance range,” said Simon Biddiscombe, president and chief executive officer, QLogic. “We are seeing stabilization in our business and I believe our investments in innovative technologies for new market opportunities position us well to deliver future growth.”

QLogic uses certain non-GAAP financial measures to supplement financial statements based on GAAP. A summary of these non-GAAP financial measures and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as a description of the reasons that management believes that these non-GAAP financial measures provide useful information to investors and the additional purposes for which management uses these non-GAAP financial measures, is presented in the accompanying financial schedules.

QLogic’s third quarter fiscal 2013 conference call is scheduled for today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Simon Biddiscombe, president and chief executive officer, and Jean Hu, senior vice president and chief financial officer, will host the conference call. The call is being webcast live via the Internet at http://ir.qlogic.com and www.earnings.com. Phone access to participate in the conference call is available at (877) 675-4750, pass code: 2146165.

The financial information that the company intends to discuss during the conference call will be available on the company’s website at http://ir.qlogic.com for twelve months following the conference call. A replay of the conference call will be available via webcast at http://ir.qlogic.com for twelve months.

Follow QLogic @ twitter.com/qlogic

QLogic – the Ultimate in Performance

QLogic (Nasdaq:QLGC) is a global leader and technology innovator in high performance networking, including adapters, switches and ASICs. Leading OEMs and channel partners worldwide rely on QLogic products for their data, storage and server networking solutions. For more information, visit www.qlogic.com.

Disclaimer – Forward-Looking Statements

This press release contains statements relating to future results of the company (including certain beliefs and projections regarding business and market trends, the stabilization of the business, and investments for new market opportunities to deliver future growth) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied in the forward-looking statements. The company advises readers that these potential risks and uncertainties include, but are not limited to: unfavorable economic conditions; potential fluctuations in operating results; gross margins that may vary over time; the stock price of the company may be volatile; the company's dependence on the networking markets served; the ability to maintain and gain market or industry acceptance of the company's products; the company's dependence on a small number of customers; the company's ability to compete effectively with other companies; the complexity of the company's products; declining average unit sales prices of comparable products; the company's dependence on sole source and limited source suppliers; the company's dependence on relationships with certain third-party subcontractors and contract manufacturers; the ability to attract and retain key personnel; sales fluctuations arising from customer transitions to new products; seasonal fluctuations and uneven sales patterns in orders from customers; a reduction in sales efforts by current distributors; changes in the company's tax provisions or adverse outcomes resulting from examination of its income tax returns; international economic, currency, regulatory, political and other risks; facilities of the company and its suppliers and customers are located in areas subject to natural disasters; the ability to protect proprietary rights; the ability to satisfactorily resolve any infringement claims; uncertain benefits from strategic business combinations, acquisitions and divestitures; declines in the market value of the company's marketable securities; changes in and compliance with regulations; difficulties in transitioning to smaller geometry process technologies; the use of "open source" software in the company's products; and security system risks, data protection breaches and cyber-attacks.

More detailed information on these and additional factors which could affect the company's operating and financial results are described in the company's Forms 10-K, 10-Q and other reports filed, or to be filed, with the Securities and Exchange Commission. The company urges all interested parties to read these reports to gain a better understanding of the business and other risks that the company faces. The forward-looking statements contained in this press release are made only as of the date hereof, and the company does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

QLogic and the QLogic logo are registered trademarks of QLogic Corporation. Other trademarks and registered trademarks are the property of the companies with which they are associated.

 
QLOGIC CORPORATION
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 

(unaudited — in thousands, except per share amounts)

 
  Three Months Ended   Nine Months Ended
December 30,   January 1, December 30,   January 1,
  2012   2012   2012   2012
 
Net revenues $ 119,386 $ 142,779 $ 367,624 $ 423,535
Cost of revenues   39,089     45,766   121,382     133,979
Gross profit   80,297     97,013   246,242     289,556
 
Operating expenses:
Engineering and development 38,409 34,229 115,891 104,146
Sales and marketing 19,325 19,858 57,950 58,088
General and administrative   8,139     8,803   24,951     26,820
Total operating expenses   65,873     62,890   198,792     189,054
 
Operating income 14,424 34,123 47,450 100,502
 
Interest and other income, net   903     798   2,935     2,926
 
Income from continuing operations before income taxes 15,327 34,921 50,385 103,428
 
Income taxes   1,622     5,700   6,459     13,504
 
Income from continuing operations 13,705 29,221 43,926 89,924
 
Income (loss) from discontinued operations, net of income taxes  

(464

)

 

804

 

(425

)

 

1,181

 
Net income $ 13,241   $ 30,025 $ 43,501   $ 91,105
 
Income from continuing operations per share:
Basic $ 0.15 $ 0.29 $ 0.46 $ 0.88
Diluted $ 0.15 $ 0.29 $ 0.46 $ 0.87
 
Income (loss) from discontinued operations per share:
Basic $ (0.01 ) $ 0.01 $ $ 0.01
Diluted $ (0.01 ) $ 0.01 $ $ 0.01
 
Net income per share:
Basic $ 0.14 $ 0.30 $ 0.46 $ 0.89
Diluted $ 0.14 $ 0.30 $ 0.46 $ 0.88
 
Number of shares used in per share calculations:
Basic 92,386 100,135 94,518 102,696
Diluted 92,570 100,668 94,963 103,340
 
QLOGIC CORPORATION
 
RECONCILIATION OF GAAP INCOME FROM CONTINUING OPERATIONS TO NON-GAAP INCOME FROM CONTINUING OPERATIONS
 

(unaudited — in thousands, except per share amounts)

 
  Three Months Ended   Nine Months Ended
December 30,   January 1, December 30,   January 1,
  2012     2012     2012     2012  
 
GAAP income from continuing operations $ 13,705 $ 29,221 $ 43,926 $ 89,924
Items excluded from GAAP income from continuing operations:
Stock-based compensation 6,973 7,620 23,295 24,349
Amortization of acquisition-related intangible assets 243 242 730 730
Income tax effect   (2,576 )   (2,567 )   (7,444 )   (7,354 )
Total non-GAAP adjustments   4,640     5,295     16,581     17,725  
Non-GAAP income from continuing operations $ 18,345   $ 34,516   $ 60,507   $ 107,649  
 
Income from continuing operations per diluted share:
GAAP income from continuing operations $ 0.15 $ 0.29 $ 0.46 $ 0.87
Adjustments   0.05     0.05     0.18     0.17  
Non-GAAP income from continuing operations $ 0.20   $ 0.34   $ 0.64   $ 1.04  

Non-GAAP Financial Measures

The non-GAAP financial measures contained herein are a supplement to the corresponding financial measures prepared in accordance with generally accepted accounting principles (GAAP). The non-GAAP financial measures presented exclude the items summarized in the above table. Management believes that adjustments for these items assist investors in making comparisons of period-to-period operating results and that these items are not indicative of the company’s on-going core operating performance.

The company has presented non-GAAP income from continuing operations and non-GAAP income from continuing operations per diluted share, on a basis consistent with its historical presentation, to assist investors in understanding the company’s core income from continuing operations and core income from continuing operations per diluted share on an on-going basis. These non-GAAP financial measures may also assist investors in making comparisons of the company’s core profitability with historical periods and comparisons of the company’s core profitability with the corresponding results for competitors. Management believes that non-GAAP income from continuing operations and non-GAAP income from continuing operations per diluted share are important measures in the evaluation of the company’s profitability. These non-GAAP financial measures exclude the adjustments described in the above table, and thus provide an overall measure of the company’s on-going profitability and related profitability on a per diluted share basis.

Management uses non-GAAP income from continuing operations and non-GAAP income from continuing operations per diluted share in its evaluation of the company’s core after-tax results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process. In addition, the company prepares and maintains its budgets and forecasts for future periods on a basis consistent with these non-GAAP financial measures. Management believes that providing these non-GAAP financial measures allows investors to view the company’s financial results in the way that management views the financial results.

The non-GAAP financial measures presented herein have certain limitations in that they do not reflect all of the costs associated with the operations of the company’s business as determined in accordance with GAAP. Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by the company may be different from the non-GAAP financial measures used by other companies.

For additional information on the items excluded from the non-GAAP financial measures and why the company believes that these non-GAAP financial measures provide useful supplemental information to investors, the company refers you to the Form 8-K regarding this release filed today with the Securities and Exchange Commission.

A summary of the non-GAAP adjustments presented in the table above by the financial statement line impacted is as follows:

(unaudited – in thousands)   Three Months Ended   Nine Months Ended
December 30,   January 1, December 30,   January 1,
  2012     2012     2012     2012  
Non-GAAP Adjustments:
Cost of revenues:
Stock-based compensation $ 529 $ 590 $ 1,839 $ 1,924
Amortization of acquisition-related intangible assets   243     242     730     730  
Total cost of revenue adjustments   772     832     2,569     2,654  
 
Operating expenses:
Engineering and development:
Stock-based compensation 3,030 3,256 10,444 10,948
Sales and marketing:
Stock-based compensation 1,619 1,783 5,217 5,166
General and administrative:
Stock-based compensation   1,795     1,991     5,795     6,311  
Total operating expense adjustments   6,444     7,030     21,456     22,425  
 
Total non-GAAP adjustments before income taxes 7,216 7,862 24,025 25,079
Income tax effect   (2,576 )   (2,567 )   (7,444 )   (7,354 )
Total non-GAAP adjustments $ 4,640   $ 5,295   $ 16,581   $ 17,725  
 
QLOGIC CORPORATION
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 

(unaudited — in thousands)

 
  December 30,   April 1,
  2012     2012  
ASSETS
Current assets:
Cash and cash equivalents $ 99,856 $ 164,516
Marketable securities   395,327     373,439  
Total cash and marketable securities 495,183 537,955
Accounts receivable, net 69,499 76,588
Inventories 23,035 19,724
Deferred tax assets 13,838 16,780
Other current assets   23,006     35,842  
Total current assets 624,561 686,889
 
Property and equipment, net 88,393 78,010
Goodwill 110,976 110,976
Purchased intangible assets, net 4,360 5,277
Deferred tax assets 35,655 30,558
Other assets   1,553     1,708  
 
$ 865,498   $ 913,418  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 30,547 $ 34,198
Accrued compensation 25,941 28,326
Accrued taxes 2,452 2,799
Deferred revenue 5,711 6,504
Other current liabilities   11,080     9,390  
Total current liabilities 75,731 81,217
 
Accrued taxes 66,953 64,853
Other liabilities   6,284     7,505  
Total liabilities   148,968     153,575  
 
Stockholders’ equity:
Common stock 212 211
Additional paid-in capital 924,604 901,734
Retained earnings 1,660,702 1,617,201
Accumulated other comprehensive income 1,883 1,033
Treasury stock   (1,870,871 )   (1,760,336 )
Total stockholders’ equity   716,530     759,843  
 
$ 865,498   $ 913,418  
 
QLOGIC CORPORATION
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 

(unaudited — in thousands)

 
  Nine Months Ended
December 30,   January 1,
  2012     2012  
 
Cash flows from operating activities:
Net income $ 43,501 $ 91,105
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 21,071 24,514
Stock-based compensation 23,295 25,787
Deferred income taxes (3,810 ) (4,334 )
Other non-cash items 3,138 5,082
Changes in operating assets and liabilities:
Accounts receivable 7,179 (12,244 )
Inventories (3,311 ) (36 )
Other assets 113 119
Accounts payable (2,499 ) (2,333 )
Accrued compensation (2,385 ) 2,382
Accrued taxes 14,367 4,531
Deferred revenue (625 ) (1,412 )
Other liabilities   1,495     936  
Net cash provided by operating activities   101,529     134,097  
 
Cash flows from investing activities:
Purchases of available-for-sale securities (228,202 ) (336,005 )
Proceeds from sales and maturities of available-for-sale securities 204,325 247,928
Purchases of property and equipment   (31,728 )   (23,480 )
Net cash used in investing activities   (55,605 )   (111,557 )
 
Cash flows from financing activities:
Proceeds from issuance of common stock under stock-based awards

6,571

12,674

Excess tax benefits from stock-based awards 129 529
Minimum tax withholding paid on behalf of employees for restricted stock units

(5,555

)

(5,425

)

Purchases of treasury stock   (111,729 )   (103,900 )
Net cash used in financing activities   (110,584 )   (96,122 )
 
Net decrease in cash and cash equivalents (64,660 ) (73,582 )
 
Cash and cash equivalents at beginning of period   164,516     147,780  
 
Cash and cash equivalents at end of period $ 99,856   $ 74,198  
 
QLOGIC CORPORATION
 
SUPPLEMENTAL FINANCIAL INFORMATION
 

(unaudited — in thousands)

 

Net Revenues

 

A summary of the company’s revenue components is as follows:

 
  Three Months Ended   Nine Months Ended
December 30,   January 1, December 30,   January 1,
2012 2012 2012 2012
 
Host Products $ 89,763 $ 111,835 $ 280,367 $ 324,208
Network Products 20,051 18,501 57,166 56,198
Silicon Products   9,572   12,443   30,091   43,129
$ 119,386 $ 142,779 $ 367,624 $ 423,535

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Providing secure, mobile access to sensitive data sets is a critical element in realizing the full potential of cloud computing. However, large data caches remain inaccessible to edge devices for reasons of security, size, format or limited viewing capabilities. Medical imaging, computer aided design and seismic interpretation are just a few examples of industries facing this challenge. Rather than fighting for incremental gains by pulling these datasets to edge devices, we need to embrace the i...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
SYS-CON Events announced today that Catchpoint, a leading digital experience intelligence company, has been named “Silver Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Catchpoint Systems is a leading Digital Performance Analytics company that provides unparalleled insight into your customer-critical services to help you consistently deliver an amazing customer experience. Designed for digital business, C...
@ThingsExpo has been named the ‘Top WebRTC Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @ThingsExpo ranked as the number one ‘WebRTC Influencer' followed by @DevOpsSummit at 55th.
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
"What is the next step in the evolution of IoT systems? The answer is data, information, which is a radical shift from assets, from things to input for decision making," stated Michael Minkevich, VP of Technology Services at Luxoft, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions with...
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, discussed the best practices that will ensure a successful smart city journey.
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, John Jelinek IV, a web developer at Linux Academy, will discuss why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers...