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8-K - FORM 8-K - QLOGIC CORP | a58344e8vk.htm |
Exhibit 99.1
Media Contact:
Sonal Dave
QLogic Corporation
949.389.6000
sonal.dave@qlogic.com
Sonal Dave
QLogic Corporation
949.389.6000
sonal.dave@qlogic.com
Investor Contact:
Doug Naylor
QLogic Corporation
949.389.7525
doug.naylor@qlogic.com
Doug Naylor
QLogic Corporation
949.389.7525
doug.naylor@qlogic.com
QLogic Announces Preliminary Third Quarter Results
for Fiscal Year 2011
for Fiscal Year 2011
Final Results to be Announced on Thursday, January 27
ALISO VIEJO, Calif., January 12, 2011QLogic Corp. (NSDQ:QLGC), a leading supplier of high
performance network infrastructure solutions, today announced preliminary results for its third
quarter ended December 26, 2010.
QLogic expects to report net revenue in the range of $155 million to $156 million for the third
quarter of fiscal 2011, which represents a sequential increase of approximately 6 percent from the
net revenue of $146.5 million for the second quarter of fiscal 2011. The updated expected net
revenue is consistent with the high end of the previously forecasted third quarter net revenue
range of $148 million to $156 million.
We are very pleased with our strong financial performance in the third quarter, said Simon
Biddiscombe, president and chief executive officer, QLogic. Our revenue performance was
primarily driven by sequential growth in revenue for our Host Products compared to the second
quarter of fiscal 2011. In addition, we experienced sequential growth in revenue for our Network
Products. Our strong operating performance is expected to include higher gross margin and lower
operating expenses than the previously provided guidance.
The Company anticipates reporting GAAP net income per diluted share for the third quarter of
fiscal 2011 in the range of $0.41 to $0.42. On a non-GAAP basis, the Company expects to report
net income per diluted share of $0.48 to $0.49, compared to the previously forecasted range of
$0.34 to $0.38 per diluted share. The expected GAAP and non-GAAP net income per diluted share
amounts for the third quarter of fiscal 2011 include the benefits associated with the retroactive
reinstatement of the federal research tax credit and other third-quarter specific income tax
items, which are expected to contribute approximately $0.10 to the net income per diluted share
amounts. These benefits were not included in the Companys previously forecasted range of net
income per diluted share. The non-GAAP net income per diluted share amounts exclude stock-based
compensation, acquisition-related charges, and the related income tax effects.
The Company will announce its third quarter financial results for fiscal year 2011 after the close
of the market on Thursday, January 27, 2011. Following the press release, QLogic will conduct a
conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Simon Biddiscombe, president
and chief executive officer, and Doug Naylor, vice president of finance and interim chief
financial officer, will host the call, which will be webcast live at http://ir.qlogic.com and
www.earnings.com. Phone access will be available at (719) 457-2727, pass code: 4576589. A replay
of the conference call will be available via webcast at http://ir.qlogic.com for twelve months.
Non-GAAP Financial Measurements
QLogic uses certain non-GAAP financial measures to supplement financial statements based on GAAP.
A summary of the non-GAAP financial measure presented herein and a reconciliation of this non-GAAP
financial measure to the most directly comparable GAAP financial measure, as well as a description
of the reasons that management believes that this non-GAAP financial measure provides useful
information to investors and the additional purposes for which management uses this non-GAAP
financial measure is presented in the accompanying financial schedule.
Follow QLogic @ twitter.com/qlogic
About QLogic
QLogic (NSDQ: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. QLogic is a NASDAQ Global Select
company and is included in the S&P 500. 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 trends) 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: declines in information
technology spending levels; potential fluctuations in operating results; gross margins that may
vary over time; the stock price of the company may be volatile; the companys dependence on the
networking markets served; potential adverse effects of increased market acceptance of blade
servers; the ability to maintain and gain market or industry acceptance of the companys products;
the companys dependence on a small number of customers; seasonal fluctuations and uneven sales
patterns in orders from customers; the companys ability to compete effectively with other
companies; declining average unit sales prices of comparable products; a reduction in sales efforts
by current distributors; the companys dependence on sole source and limited source suppliers; the
companys dependence on relationships with certain third-party subcontractors and contract
manufacturers; declines in the market value of the companys investment securities; the complexity
of the companys products; sales fluctuations arising from customer transitions to new products;
changes in the companys tax provisions or adverse outcomes resulting from examination of its
income tax returns; environmental compliance costs; international economic, regulatory, political
and other risks; uncertain benefits from strategic business combinations; the ability to attract
and retain key personnel; difficulties in transitioning to smaller geometry process technologies;
the ability to protect proprietary rights; the ability to satisfactorily resolve any infringement
claims; the use of open source software in the companys products; changes in regulations or
standards regarding energy use of the companys products; computer viruses and other tampering with
the companys computer systems; and facilities of the company and its suppliers and customers are
located in areas subject to natural disasters.
More detailed information on these and additional factors which could affect the companys
operating and financial results are described in the companys 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
RECONCILIATION OF GAAP NET INCOME PER DILUTED SHARE PRELIMINARY RESULTS
TO NON-GAAP NET INCOME PER DILUTED SHARE PRELIMINARY RESULTS
TO NON-GAAP NET INCOME PER DILUTED SHARE PRELIMINARY RESULTS
(unaudited)
Three Months Ended | ||||
December 26, 2010 | ||||
GAAP net income per diluted share preliminary results |
$ | 0.41 - 0.42 | ||
Items excluded from GAAP net income per diluted share,
including stock-based compensation, acquisition-related
charges, and the related income tax effects |
0.07 | |||
Non-GAAP net income per diluted share preliminary results |
$ | 0.48 0.49 | ||
Non-GAAP Financial Measures
The non-GAAP financial measure contained herein is a supplement to the corresponding financial
measure prepared in accordance with generally accepted accounting principles (GAAP). The non-GAAP
financial measure presented excludes 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 companys on-going core operating
performance.
The company has presented non-GAAP net income per diluted share, on a basis consistent with its
historical presentation, to assist investors in understanding the companys core net income per
diluted share on an on-going basis. This non-GAAP financial measure may also assist investors in
making comparisons of the companys core net profitability with historical periods and comparisons
of the companys core net profitability with the corresponding results for competitors. Management
believes that non-GAAP net income per diluted share is an important measure in the evaluation of
the companys profitability. This non-GAAP financial measure excludes the adjustments described in
the above table, and thus provides an overall measure of the companys on-going net profitability
on a diluted per share basis.
Management uses non-GAAP net income per diluted share in its evaluation of the companys core
after-tax results of operations and trends between fiscal periods and believes that this measure is
an important component 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 this
non-GAAP financial measure. Management believes that providing this non-GAAP financial measure
allows investors to view the companys financial results in the way that management views the
financial results.
The non-GAAP financial measure presented herein has certain limitations in that it does not reflect
all of the costs associated with the operations of the companys business as determined in
accordance with GAAP. Therefore, investors should consider this non-GAAP financial measure 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 measure 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 measure presented and
why the company believes that this non-GAAP financial measure provides 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.