AI
Wednesday, October 16, 2002 4:45:49 PM
QLogic Corporation Reports Second Quarter Results for Fiscal Year 2003
Revenues Reach Record Level
Wednesday October 16, 4:43 pm ET
ALISO VIEJO, Calif.--(BUSINESS WIRE)--Oct. 16, 2002--QLogic Corporation (Nasdaq:QLGC - News), the only end-to-end storage network infrastructure provider, announced today its financial results for the second fiscal quarter ended September 29, 2002.
Revenues in the second quarter on a pro forma basis were a record $108.5 million, up 8% sequentially from $100.8 million in the June 2002 quarter. Fibre Channel revenues were up 10% sequentially to a record $75.6 million representing 70% of the overall business, up from 68% in the prior quarter. Gross margins were 63.0% compared to 63.2% in the previous quarter. Second quarter pro forma net income increased 7% from the previous quarter to a record $27.0 million, or $0.28 per share on a diluted basis compared to $25.3 million, or $0.26 per share on a diluted basis.
Revenues increased 33% compared to $81.7 million reported for the same quarter a year ago on a pro forma basis. Fibre Channel revenues grew 33% from $57.0 million in the September 2001 quarter, which represented 70% of the overall business. Pro forma net income increased 52% from $17.7 million, or $0.19 per share on a diluted basis in the same quarter last year.
Net revenues on a GAAP basis for the quarter ended September 29, 2002 were $107.1 million, and were net of a $1.4 million sales discount for warrants issued to Sun Microsystems. Second quarter revenues on a GAAP basis were up 32% compared to net revenues of $80.9 million reported in the September 2001 quarter. The Company's second quarter net income recorded on a GAAP basis was up 45% to $23.0 million or $0.24 per diluted share, compared to $15.9 million or $0.17 per diluted share in the prior year. The pro forma adjustments include the Sun warrants, merger related stock compensation charges and an impairment charge for a technology company investment, net of the related tax effects.
"We continue to be encouraged by our strong financial performance," said H.K. Desai, the Company's chairman, CEO and president. "Despite the sluggish overall technology spending across the industry, the company once again experienced strong growth in our Fibre Channel segment and continued moderate growth in our SCSI business. Fibre Channel revenues increased 10% sequentially, while SCSI revenues grew 3% driven by demand from a diverse range of customers."
The Company's balance sheet was again highlighted by an increase in cash and investments, ending the quarter with $571.9 million, an increase of $24.5 million during the quarter.
In a separate announcement, QLogic announced today that its Board of Directors has authorized a program to repurchase up to $100 million of the Company's outstanding common stock. The stock repurchase program will be put into effect immediately. Share repurchases by the Company may be made from time to time in the open market and in private transactions over the next two years.
QLogic's second quarter 2003 conference call is scheduled today at 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time). H.K. Desai, chairman of the board, chief executive officer and president and Frank Calderoni, senior vice president and chief financial officer, will conduct the conference call. The call is being webcast live via the Internet at www.qlogic.com or via CCBN. Phone access is available at (719) 457-2666, passcode: 694615.
A replay of the conference call will be available via webcast at www.qlogic.com or audio at (719) 457-0820, passcode: 694615. The webcast will be available for 90 days. The audio replay will be available through October 31, 2002.
Powered by QLogic
QLogic technology powers SAN solutions from the world's leading storage vendors including Cisco, Dell, EMC, Fujitsu, Hitachi, HP, IBM, Quantum, Sony, StorageTek and Sun. The industry depends on QLogic to simplify SANs with native Fibre Channel support designed into all major operating systems and to innovate new ways to network storage through new technologies like Virtual Interface (VI), Fibre Down(TM) and iSCSI.
About QLogic (www.qlogic.com)
QLogic Corporation (Nasdaq:QLGC - News) simplifies the process of networking storage for OEMs, resellers and system integrators with the only end-to-end infrastructure in the industry, consisting of award-winning controller chips, host bus adapters, network switches and management software to move data from the storage device through the fabric to the server. A member of the S&P 500 Index, QLogic was recently ranked number 25 on Forbes' Best 200 Small Companies and was named to Fortune's 100 Fastest Growing Companies list for the third consecutive year.
Note: All QLogic-issued press releases appear on the company's web site (www.qlogic.com). Any announcement that does not appear on the QLogic web site has not been issued by QLogic.
Disclaimer-Forward Looking Statements
With the exception of historical information, the statements set forth above include forward-looking statements as defined within 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. QLogic wishes to advise readers that these potential risks and uncertainties relate to, but are not limited to, in no particular order: the introduction of new and changing technologies in our industry and customer acceptance of those technologies; a change in semiconductor foundry capacity or conditions; fluctuations in the growth of I/O markets; fluctuations or cancellations in orders from OEM customers; QLogic's ability to compete effectively with other companies; cancellation of OEM products associated with design wins; and fluctuations in our operating results and our stock price.
More detailed information on these and additional factors which could affect QLogic's operating and financial results are described in QLogic's Forms 10-Q, 10-K and other reports, filed or to be filed with the Securities and Exchange Commission. QLogic urges all interested parties to read these reports to gain a better understanding of the many business and other risks that QLogic faces. Additionally, QLogic undertakes no obligation to publicly release the results of any revisions to these forward-looking statements, which may be made to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.
Note to Editors: Trademarks and registered trademarks are the property of the companies with which they are associated.
-0-
--------------------------------------------------------------------------------
Contact:
QLogic Corporation, Aliso Viejo
Steve Sturgeon (Editorial), 949/389-6268
steve.sturgeon@qlogic.com
or
Frank Calderoni or Laurie Moreland (Investors),
949/389-6418
investor.relations@qlogic.com
--------------------------------------------------------------------------------
Source: QLogic Corporation
http://biz.yahoo.com/bw/021016/160600_1.html
Revenues Reach Record Level
Wednesday October 16, 4:43 pm ET
ALISO VIEJO, Calif.--(BUSINESS WIRE)--Oct. 16, 2002--QLogic Corporation (Nasdaq:QLGC - News), the only end-to-end storage network infrastructure provider, announced today its financial results for the second fiscal quarter ended September 29, 2002.
Revenues in the second quarter on a pro forma basis were a record $108.5 million, up 8% sequentially from $100.8 million in the June 2002 quarter. Fibre Channel revenues were up 10% sequentially to a record $75.6 million representing 70% of the overall business, up from 68% in the prior quarter. Gross margins were 63.0% compared to 63.2% in the previous quarter. Second quarter pro forma net income increased 7% from the previous quarter to a record $27.0 million, or $0.28 per share on a diluted basis compared to $25.3 million, or $0.26 per share on a diluted basis.
Revenues increased 33% compared to $81.7 million reported for the same quarter a year ago on a pro forma basis. Fibre Channel revenues grew 33% from $57.0 million in the September 2001 quarter, which represented 70% of the overall business. Pro forma net income increased 52% from $17.7 million, or $0.19 per share on a diluted basis in the same quarter last year.
Net revenues on a GAAP basis for the quarter ended September 29, 2002 were $107.1 million, and were net of a $1.4 million sales discount for warrants issued to Sun Microsystems. Second quarter revenues on a GAAP basis were up 32% compared to net revenues of $80.9 million reported in the September 2001 quarter. The Company's second quarter net income recorded on a GAAP basis was up 45% to $23.0 million or $0.24 per diluted share, compared to $15.9 million or $0.17 per diluted share in the prior year. The pro forma adjustments include the Sun warrants, merger related stock compensation charges and an impairment charge for a technology company investment, net of the related tax effects.
"We continue to be encouraged by our strong financial performance," said H.K. Desai, the Company's chairman, CEO and president. "Despite the sluggish overall technology spending across the industry, the company once again experienced strong growth in our Fibre Channel segment and continued moderate growth in our SCSI business. Fibre Channel revenues increased 10% sequentially, while SCSI revenues grew 3% driven by demand from a diverse range of customers."
The Company's balance sheet was again highlighted by an increase in cash and investments, ending the quarter with $571.9 million, an increase of $24.5 million during the quarter.
In a separate announcement, QLogic announced today that its Board of Directors has authorized a program to repurchase up to $100 million of the Company's outstanding common stock. The stock repurchase program will be put into effect immediately. Share repurchases by the Company may be made from time to time in the open market and in private transactions over the next two years.
QLogic's second quarter 2003 conference call is scheduled today at 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time). H.K. Desai, chairman of the board, chief executive officer and president and Frank Calderoni, senior vice president and chief financial officer, will conduct the conference call. The call is being webcast live via the Internet at www.qlogic.com or via CCBN. Phone access is available at (719) 457-2666, passcode: 694615.
A replay of the conference call will be available via webcast at www.qlogic.com or audio at (719) 457-0820, passcode: 694615. The webcast will be available for 90 days. The audio replay will be available through October 31, 2002.
Powered by QLogic
QLogic technology powers SAN solutions from the world's leading storage vendors including Cisco, Dell, EMC, Fujitsu, Hitachi, HP, IBM, Quantum, Sony, StorageTek and Sun. The industry depends on QLogic to simplify SANs with native Fibre Channel support designed into all major operating systems and to innovate new ways to network storage through new technologies like Virtual Interface (VI), Fibre Down(TM) and iSCSI.
About QLogic (www.qlogic.com)
QLogic Corporation (Nasdaq:QLGC - News) simplifies the process of networking storage for OEMs, resellers and system integrators with the only end-to-end infrastructure in the industry, consisting of award-winning controller chips, host bus adapters, network switches and management software to move data from the storage device through the fabric to the server. A member of the S&P 500 Index, QLogic was recently ranked number 25 on Forbes' Best 200 Small Companies and was named to Fortune's 100 Fastest Growing Companies list for the third consecutive year.
Note: All QLogic-issued press releases appear on the company's web site (www.qlogic.com). Any announcement that does not appear on the QLogic web site has not been issued by QLogic.
Disclaimer-Forward Looking Statements
With the exception of historical information, the statements set forth above include forward-looking statements as defined within 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. QLogic wishes to advise readers that these potential risks and uncertainties relate to, but are not limited to, in no particular order: the introduction of new and changing technologies in our industry and customer acceptance of those technologies; a change in semiconductor foundry capacity or conditions; fluctuations in the growth of I/O markets; fluctuations or cancellations in orders from OEM customers; QLogic's ability to compete effectively with other companies; cancellation of OEM products associated with design wins; and fluctuations in our operating results and our stock price.
More detailed information on these and additional factors which could affect QLogic's operating and financial results are described in QLogic's Forms 10-Q, 10-K and other reports, filed or to be filed with the Securities and Exchange Commission. QLogic urges all interested parties to read these reports to gain a better understanding of the many business and other risks that QLogic faces. Additionally, QLogic undertakes no obligation to publicly release the results of any revisions to these forward-looking statements, which may be made to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.
Note to Editors: Trademarks and registered trademarks are the property of the companies with which they are associated.
-0-
QLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME -- PRO FORMA
(Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
Sep. 29, June 30, Sep. 30, Sep. 29, Sep. 30,
2002 2002 2001 2002 2001
Net revenues $108,525 $100,780 $81,746 $209,305 $173,808
Cost of revenues 40,200 37,107 32,607 77,307 66,918
Gross margin 68,325 63,673 49,139 131,998 106,890
Operating expenses
Engineering and
development 18,065 16,612 15,034 34,677 31,060
Selling and
marketing 11,435 10,618 9,063 22,053 19,220
General and
administrative 3,651 3,194 3,194 6,845 6,977
Total
operating
expenses 33,151 30,424 27,291 63,575 57,257
Operating income 35,174 33,249 21,848 68,423 49,633
Interest and other
income, net 5,167 4,612 4,662 9,779 9,768
Income before income
taxes 40,341 37,861 26,510 78,202 59,401
Income taxes 13,321 12,537 8,765 25,858 19,717
Net income $27,020 $25,324 $17,745 $52,344 $39,684
Net income per share:
Basic $0.29 $0.27 $0.19 $0.56 $0.43
Diluted $0.28 $0.26 $0.19 $0.55 $0.42
Number of shares
used in
per share
computations:
Basic 93,377 93,177 92,535 93,277 92,467
Diluted 95,189 95,857 94,761 95,384 94,908
QLOGIC CORPORATION
Reconciliation of Pro Forma Net Income to GAAP Net Income
(Unaudited)
The following represents a reconciliation of pro forma net income
to GAAP net income. The amounts below are substantially non-cash and
have arisen primarily from the Company's stock-based discounts, merger
and acquisition related charges, and an impairment of an investment in
a technology company.
Three Months Ended Six Months Ended
Sep. 29, Sep. 30, Sep. 29, Sep. 30,
2002 2001 2002 2001
Pro forma net income $27,020 $17,745 $52,344 $39,684
Items excluded from pro forma:
Sales discounts for stock
warrants (1,410) (867) (3,228) (3,028)
Acquired in process R&D
charges -- (275) -- (529)
Merger related stock
compensation charges (1,568) (985) (3,135) (2,102)
Technology company investment
impairment (3,000) -- (3,000) --
Amortization of goodwill and
other intangibles -- (682) -- (1,332)
Impact on income before taxes (5,978) (2,809) (9,363) (6,991)
Income tax effect of the pro
forma adjustments 1,973 926 3,090 2,349
Impact on net income (4,005) (1,883) (6,273) (4,642)
GAAP net income $23,015 $15,862 $46,071 $35,042
QLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME -- GAAP
(Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
Sep. 29, Sep. 30, Sep. 29, Sep. 30,
2002 2001 2002 2001
Gross revenues $108,525 $81,746 $209,305 $173,808
Stock-based sales
discounts 1,410 867 3,228 3,028
Net revenues 107,115 80,879 206,077 170,780
Cost of revenues 40,200 32,607 77,307 66,918
Gross margin 66,915 48,272 128,770 103,862
Operating expenses:
Engineering and
development 19,633 16,294 37,812 33,691
Selling and marketing 11,435 9,063 22,053 19,220
General and
administrative 3,651 3,876 6,845 8,308
Total operating
expenses 34,719 29,233 66,710 61,219
Operating income 32,196 19,039 62,060 42,643
Interest and other
income, net 2,167 4,662 6,779 9,768
Income before income
taxes 34,363 23,701 68,839 52,411
Income taxes 11,348 7,839 22,768 17,369
Net income $23,015 $15,862 $46,071 $35,042
Net income per share:
Basic $0.25 $0.17 $0.49 $0.38
Diluted $0.24 $0.17 $0.48 $0.37
Number of shares used in
per share computations:
Basic 93,377 92,535 93,277 92,467
Diluted 95,189 94,761 95,384 94,908
QLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
ASSETS
Sep. 29, March 31,
2002 2002
Current assets:
Cash and cash equivalents $128,231 $76,124
Short-term investments 443,651 416,422
Accounts receivable, net 32,033 38,360
Inventories 30,405 24,758
Deferred income taxes 28,064 27,635
Prepaid expenses and other current assets 3,577 3,345
Total current assets 665,961 586,644
Property and equipment, net 60,467 60,293
Other assets 12,117 23,078
$738,545 $670,015
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $17,460 $15,025
Accrued expenses 38,254 36,007
Total current liabilities 55,714 51,032
Total stockholders' equity 682,831 618,983
$738,545 $670,015
--------------------------------------------------------------------------------
Contact:
QLogic Corporation, Aliso Viejo
Steve Sturgeon (Editorial), 949/389-6268
steve.sturgeon@qlogic.com
or
Frank Calderoni or Laurie Moreland (Investors),
949/389-6418
investor.relations@qlogic.com
--------------------------------------------------------------------------------
Source: QLogic Corporation
http://biz.yahoo.com/bw/021016/160600_1.html
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