NEWS: QLogic Corp. Reports Record Fourth Quarter and Fiscal 1998 Results
COSTA MESA, Calif.--(BUSINESS WIRE)--May 12, 1998--QLogic Corp. (Nasdaq:QLGC), a leader in the I/O industry, Tuesday announced that revenues for its fourth fiscal quarter ended March 29, 1998 rose to a record $22.7 million, up 19% compared with the $19.0 million reported for the same quarter a year ago.
Fourth quarter net income grew 106% to $4.2 million, or a record $0.46 per share on a diluted basis, compared with the $2.0 million, or $0.32 per share on a diluted basis, from a year ago.
For fiscal 1998, revenues expanded 18% to a record $81.4 million compared with $68.9 million reported for the prior fiscal year. Net income for fiscal 1998 grew 129% to $13.4 million, or a record $1.66 per share on a diluted basis, compared with the $5.8 million, or $0.96 per share on a diluted basis, reported a year ago.
"Growth in demand for QLogic's peripheral I/O products contributed strongly to revenue expansion in the fourth quarter, " noted H.K. Desai, the company's president and chief executive officer. "Our fourth quarter revenue gains on both a sequential and year-to-year basis were generated by increased demand from international OEM customers, particularly those in the Asia-Pacific region. In the host computer I/O sector, we continued to be encouraged by customer interest in our new fibre channel offerings."
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
March 29, 1998 March 30, 1997
Current assets: Cash and cash equivalents $64,090 $19,091
Short-term investments 27,746 -- Accounts receivable, net 7,836 5,720
Inventories, net 3,835 4,794
Deferred income taxes 4,353 1,149
Prepaid expenses and other 475 391
Total current assets 108,335 31,145
Long-term investments 20,934 -- Property and equipment, net 6,372 5,043
Other assets 601 775
$ 136,242 $36,963
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable and accrued
expenses $17,375 $11,109
Current installments of
capitalized lease obligations 211 225
Total current liabilities 17,586 11,334
Capitalized lease obligations, excluding current installments 141 352
Other non-current liabilities 466 924
Total stockholders' equity 118,049 24,353
$136,242 $36,963
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QLOGIC CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
March 29, March 30, March 29, March 30, 1998 1997 1998 1997
Net revenues $22,740 $19,031 $81,393 $68,927 Cost of sales 9,165 9,553 34,049 38,151
Gross profit 13,575 9,478 47,344 30,776
Operating expenses: Engineering and
development 4,333 3,222 15,601 10,422 Selling and marketing 2,408 1,807 8,707 6,372 General and
administrative 1,124 1,215 4,550 4,628
Total operating
expenses 7,865 6,244 28,858 21,422
Operating income 5,710 3,234 18,486 9,354
Interest income, net 1,081 188 3,344 477
Income before income taxes 6,791 3,422 21,830 9,831
Income tax provision 2,614 1,396 8,422 3,983
Net income $ 4,177 $ 2,026 $13,408 $ 5,848
Basic earnings per common share $ 0.48 $ 0.35 $ 1.77 $ 1.02 Diluted earnings per share $ 0.46 $ 0.32 $ 1.66 $ 0.96
Common shares used in the calculations of basic earnings per share 8,651 5,841 7,592 5,722
Shares used in the calculations of diluted earnings per share 9,138 6,329 8,099 6,115
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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 |
