NEWS:QLogic Corp. Reports Record Third Quarter Results
COSTA MESA, Calif.--(BUSINESS WIRE)--Jan. 21, 1998--QLogic Corp. (Nasdaq:QLGC), a leader in the I/O industry, announced Wednesday that revenues for its third fiscal quarter ended Dec. 28, 1997, rose to a record $20.9 million, up 20 percent compared with the $17.4 million reported for the same quarter a year ago. Third quarter net income grew 135 percent to $3.9 million, or a record $0.43 per share on a diluted basis, compared with the $1.7 million, or $0.27 per share on a diluted basis, from a year ago.
"Growth in demand across QLogic's host and peripheral I/O product sectors continued to drive revenue expansion during the third quarter," noted H.K. Desai, the company's president and chief executive officer.
"Most of our revenue gain on both a sequential and year to year basis was generated by increased demand from international OEM customers, particularly those in the Asia-Pacific region. Furthermore, growth from peripheral OEM customers outpaced growth from host computer OEMs, as OEM production of a number of newer high performance storage products that incorporate QLogic I/O solutions continued to ramp. Although SCSI solutions continued to dominate our current shipments, customer interest in QLogic's new fibre channel products expanded further during the third quarter."
For the first nine months of fiscal 1998, revenues expanded to $58.7 million compared with the $49.9 million reported for the same period a year ago. Net income for the first nine months grew 142 percent to $9.2 million, or $1.19 per share on a diluted basis, compared with net income of $3.8 million, or $0.64 per share on a diluted basis, from a year ago.
QLogic Corp. is a leading designer and supplier of semiconductor and board-level I/O (input/output) products. The company's products provide a high performance connection between computer systems and their attached data storage peripherals, such as hard disk and tape drives, CD-ROM drives and RAID subsystems. QLogic provides I/O technology solutions by designing and marketing single chip controller and adapter board products for both sides of the computer/peripheral device interlink, or "bus."
Historically, the company has targeted the high performance sector of the I/O market, focusing primarily on the small computer system interface (SCSI) standard. The company is utilizing its I/O expertise to develop products for emerging I/O standards such as fibre channel. Fibre channel is experiencing early industry acceptance as a higher performance solution that maintains signal integrity while allowing for increased connectivity between a computer system and its data storage peripherals.
In the quarter ended Dec. 28, 1997, the company adopted Statement of Financial Accounting Standards No. 128, "Earnings per Share." All prior periods have been restated accordingly.
With the exception of historical information, the statements set forth above include forward-looking statements that involve risks and uncertainties. The company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include the company's ability to develop and produce new technologies; new and changing technologies and customer acceptance of those technologies; a change in semiconductor foundry 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; and cancellation of OEM products associated with design wins. These and other factors which could cause actual results to differ materially from those in the forward-looking statements are also discussed in the company's filings with the Securities and Exchange Commission, including its recent filings on Form S-3, 10-K and 10-Q.
More information on QLogic is available from the company's SEC filings. Contact QLogic Corp., 3545 Harbor Blvd., Costa Mesa, Calif. 92626. Sales: 800/662-4471. Corporate: 714/438-2200. World Wide Web: qlc.com . -0- *T
QLOGIC CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands)
ASSETS
Dec. 28, 1997 March 30, 1997 Current assets: Cash and cash equivalents $54,731 $19,091
Short-term investments 50,997 -- Accounts and notes
receivable, net 6,698 5,720
Inventories, net 4,006 4,794
Deferred income taxes 2,188 1,149
Prepaid expenses and
other current assets 670 391
Total current assets 119,290 31,145
Property and equipment, net 5,963 5,043
Other assets 1,108 775
$126,361 $36,963
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable and
accrued expenses $13,425 $11,109
Current installments
of capitalized lease
obligations 204 225
Total current liabilities 13,629 11,334
Capitalized lease
obligations, excluding
current installments 196 352
Other non-current liabilities 654 924
Total stockholders' equity 111,882 24,353
$126,361 $36,963
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QLOGIC CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (in thousands, except per share data)
Three Months Ended Nine Months Ended
Dec. 28, Dec. 29, Dec. 28, Dec. 29, 1997 1996 1997 1996 Net revenues $20,856 $17,431 $58,653 $49,896 Cost of sales 8,594 9,391 24,884 28,598 Gross profit 12,262 8,040 33,769 21,298
Operating expenses: Engineering and
development 4,085 2,575 11,268 7,200 Selling and marketing 2,041 1,742 6,299 4,565 General and
administrative 952 1,067 3,426 3,413
Total operating
expenses 7,078 5,384 20,993 15,178
Operating income 5,184 2,656 12,776 6,120 Interest income, net 1,261 138 2,263 289 Income before income taxes 6,445 2,794 15,039 6,409 Income tax provision 2,499 1,117 5,808 2,587 Net income $3,946 $1,677 $9,231 $3,822 Basic earnings per common share $0.46 $0.29 $1.28 $0.67
Diluted earnings per common and common equivalent share $0.43 $0.27 $1.19 $0.64
Common shares used in the calculations of basic earnings per share 8,590 5,777 7,238 5,682
Common and common equivalent shares used in the calculations of diluted earnings per share 9,115 6,238 7,757 6,024 *T
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CONTACT:
QLogic Corp., Costa Mesa
Thomas R. Anderson, Vice President, CFO
Phone: 714/668-5092
Fax: 714/668-5090
Michael R. Manning, Secretary & Treasurer
Phone: 714/668-5344
Fax: 714/668-5090 |
