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.
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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.
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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. |
