Welcome!

Open Source Cloud Authors: Automic Blog, Dynatrace Blog, Dana Gardner, Jyoti Bansal, PagerDuty Blog

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
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that CA Technologies has been named “Platinum 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, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that Auditwerx 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. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and attent...
SYS-CON Events announced today that HTBase 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. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
SYS-CON Events announced today that Loom Systems 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. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
SYS-CON Events announced today that T-Mobile 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. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Infranics 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. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze 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. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
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.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.