ALISO VIEJO, Calif.--(BUSINESS WIRE)--Jan. 23, 2002--QLogic
Corporation (Nasdaq:QLGC), the only end-to-end storage network
infrastructure provider, announced today its financial results for the
third fiscal quarter ended December 30, 2001.
Gross revenues in the third quarter were $83.6 million, down 14%
compared to the $97.2 million reported for the same quarter a year
ago, but up 2% sequentially from the September 2001 quarter. Third
quarter pro forma net income decreased 29% to $18.9 million, or $0.20
per share on a diluted basis, compared to the $26.9 million, or $0.28
per share on a diluted basis, recorded a year ago.
Net revenues on a GAAP basis for the quarter ended December 30,
2001 were $82.6 million, and are net of a $1.0 million sales discount
for warrants issued to Sun Microsystems. The Company's third quarter
earnings per share recorded on a GAAP basis were $0.18 on a diluted
basis, compared to $0.26 in the prior year.
For the first nine months of fiscal 2002, gross revenues were down
2% to $257.4 million, compared to $262.2 million for the same period a
year ago. Pro forma net income for the first nine months of fiscal
2002 decreased 18% to $58.5 million, or $0.62 per share on a diluted
basis, compared to the $71.0 million or $0.75 per share recorded on a
pro forma basis for the same period a year ago.
"Results from this past quarter have been very encouraging," said
H.K. Desai, the company's chairman, CEO and president. "Our strategy
of addressing diverse markets is allowing the Company to remain highly
profitable, yet allowing us to invest in the necessary infrastructure
to support long term growth."
The Company's balance sheet was again highlighted by a strong rise
in cash and investments, ending the quarter with $453.3 million
compared to $355.5 million at April 1, 2001. The Company also
decreased its inventory balance to $27.2 million at December 30, 2001,
from $46.5 million at the end of its last fiscal year.
About QLogic (www.qlogic.com)
QLogic Corporation (Nasdaq:QLGC) 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. QLogic designs and produces solutions based
on all storage network technologies including SCSI, iSCSI, InfiniBand
and Fibre Channel. A member of the S&P 500 Index, QLogic was recently
ranked number 25 on Forbes' Best 200 Small Companies and number 20 on
Fortune's 100 Fastest Growing Companies.
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 that involve risks and
uncertainties. The Company wishes to advise readers that a number of
important factors could cause actual results to differ materially from
those in the forward-looking statements. Those factors include new and
changing technologies 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; the Company's ability to compete effectively with
other companies; cancellation of OEM products associated with design
wins; and reductions in the need for space and increased costs of
operations due to facility relocation. Carrying additional expansion
space may increase costs and adversely impact future earnings.
These and other factors which could cause actual results to differ
materially are also discussed in the company's filings with the
Securities and Exchange Commission, including its recent filings on
Form S-3, Form 10-K, and Form 10-Q.
Trademarks and registered trademarks are the property of the
companies with which they are associated.
QLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME -- PRO FORMA
(Unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
2001 2000 2001 2000
Net revenues $ 83,627 $ 97,213 $ 257,435 $ 262,235
Cost of revenues 31,456 34,631 98,374 91,683
Gross profit 52,171 62,582 159,061 170,552
Operating expenses
Engineering and
development 16,046 14,003 47,106 39,977
Selling and marketing 8,927 8,879 28,147 25,923
General and
administrative 3,693 3,922 10,670 10,276
Total operating
expenses 28,666 26,804 85,923 76,176
Operating income 23,505 35,778 73,138 94,376
Interest income, net 4,652 4,941 14,420 13,271
Income before income
taxes 28,157 40,719 87,558 107,647
Income tax provision 9,303 13,845 29,020 36,600
Net income $ 18,854 $ 26,874 $ 58,538 $ 71,047
Net income per share:
Basic $ 0.20 $ 0.29 $ 0.63 $ 0.78
Diluted $ 0.20 $ 0.28 $ 0.62 $ 0.75
Number of shares used in per share computations:
Basic 92,708 91,653 92,547 90,697
Diluted 95,125 95,708 94,993 95,082
The following discussion relates to the three-month periods ended
December 30, 2001 and December 31, 2000. Total expenses excluded from
pro forma net income were $1.8 million and $1.7 million, respectively.
Individual pro forma items are as follows. Sales discounts for stock
warrants were $1.0 million and $2.1 million, respectively. Acquired
in-process R&D charges were $0.3 million and $0.3 million,
respectively. Stock compensation charges were $0.6 million and $0,
respectively. Amortization of goodwill and other intangibles were $0.8
million and $0.2 million, respectively. Offsetting tax effects were
$0.9 million and $0.9 million, respectively.
The following discussion relates to the nine-month periods ended
December 30, 2001 and December 31, 2000. Total expenses excluded from
pro forma net income were $6.5 million and $27.5 million,
respectively. Individual pro forma items are as follows. Sales
discounts for stock warrants were $4.1 million and $4.4 million,
respectively. Merger and related expenses were $0 and $22.9 million,
respectively. Acquired in process R&D charges were $0.8 million and
$0.6 million, respectively. Stock compensation charges were $1.6
million and $0, respectively. Amortization of goodwill and other
intangibles expenses were $3.2 million and $0.5 million, respectively.
Offsetting tax effects were $3.2 million and $0.9 million,
respectively.
QLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME -- GAAP
(Unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
2001 2000 2001 2000
Gross revenues $ 83,627 $ 97,213 $ 257,435 $ 262,235
Sales discounts 1,040 2,084 4,068 4,362
Net revenues 82,587 95,129 253,367 257,873
Cost of revenues 31,456 34,631 98,374 91,683
Gross profit 51,131 60,498 154,993 166,190
Operating expenses:
Engineering and
development 17,451 14,264 51,142 40,587
Selling and
marketing 8,927 8,879 28,147 25,923
General and
administrative 3,974 4,103 12,282 10,744
Merger and related
expenses -- -- -- 22,947
Total operating
expenses 30,352 27,246 91,571 100,201
Operating income 20,779 33,252 63,422 65,989
Interest
income, net 4,652 4,942 14,420 13,272
Income before income
taxes 25,431 38,194 77,842 79,261
Income tax
provision 8,403 12,986 25,772 35,735
Net income $ 17,028 $ 25,208 $ 52,070 $ 43,526
Net income per share:
Basic $ 0.18 $ 0.28 $ 0.56 $ 0.48
Diluted $ 0.18 $ 0.26 $ 0.55 $ 0.46
Number of shares used in per share computations:
Basic 92,708 91,653 92,547 90,697
Diluted 95,125 95,708 94,993 95,082
QLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
ASSETS
Dec. 30, 2001 April 1, 2001
Current assets:
Cash and cash equivalents $ 136,857 $ 128,273
Short-term investments 316,408 227,210
Accounts receivable, net 38,233 53,588
Inventories 27,151 46,510
Deferred income taxes 29,644 32,558
Prepaid expenses and other current
assets 3,411 2,358
Total current assets 551,704 490,497
Property and equipment, net 57,687 56,843
Other assets 24,153 24,157
$ 633,544 $ 571,497
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 8,033 $ 18,017
Accrued expenses 31,108 29,778
Total current liabilities 39,141 47,795
Total stockholders' equity 594,403 523,702
$ 633,544 $ 571,497
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