QLGC...logic Corporation Reports Fourth Quarter and Fiscal 2000 Results 5/10 biz.yahoo.com
ALISO VIEJO, Calif.--(BUSINESS WIRE)--May 10, 2000--
We urge investors and security holders to read QLogic's Registration Statement on Form S-4 and the Prospectus/Proxy Statement of QLogic and Ancor relating to the merger transaction described below, when they become available, because they will contain important information. When these and other documents relating to the transaction are filed with the U.S. Securities and Exchange Commission, they may be obtained free at the SEC's web site at www.sec.gov. You may also obtain each of these documents (when they become available) for free from QLogic or from Ancor by directing your request to the investor relations contact persons identified below.
QLogic Corporation (Nasdaq:QLGC - news), a leader in the I/O industry, today reported its financial results for the fourth fiscal quarter ended April 2, 2000.
Revenues rose to a record $60.1 million, up 71% compared to the $35.1 million reported for the same quarter a year ago. Pro forma net income, which excludes the effect of an acquired in-process technology charge, grew 116% to $18.5 million, or $0.24 per share on a diluted basis, compared with net income of $8.5 million, or $0.11 per share on a diluted basis for the fourth quarter a year ago.
During the fiscal 2000 fourth quarter, QLogic completed the acquisition of certain intellectual property from Borg Adaptive Technologies, Inc., a wholly-owned subsidiary of nStor Corporation. Results for the fiscal 2000 fourth quarter include a $7.5 million charge for the write-off of acquired in-process technology related to the Borg transaction. Actual net income for the quarter, which includes this charge and related tax effects, grew by 58% to $13.5 million, or diluted net income per share of $0.17.
For fiscal 2000, revenues expanded 73% to a record $203.1 million compared to $117.2 million reported for the prior fiscal year. Excluding the in-process technology charge and related tax effects, net income for fiscal 2000 grew 129% to a record $58.9 million, or a diluted net income per share of $0.76. Including this acquired in-process technology charge and the related tax effects, net income for fiscal 2000 grew 110% to $54.0 million, or diluted net income per share of $0.70.
``Fiscal 2000 was a year of significant growth and progress for QLogic,'' noted H.K. Desai, Chairman, CEO & President. ``Many new milestones and financial records were achieved which included the introduction of leading edge technology to our product base, appointment to the Nasdaq-100©, our second and third stock splits, and growth in revenues to over $200 million. In particular, Fibre Channel revenues significantly contributed to this growth, expanding over 200% to $60 million in fiscal year 2000.''
Earlier this week QLogic announced that it entered into an agreement to acquire Ancor Communications, Incorporated (NASDAQ: ANCR - news), a leading provider of Fibre Channel switches. The acquisition of Ancor will extend QLogic's extensive portfolio of products based on Fibre Channel technology. Ancor's SANbox(TM) family is recognized as one of the broadest lines of Fibre Channel switches in the industry, delivering the hardware and fabric management software essential for SAN infrastructures. The merged company is expected to leverage key customer relationships to produce synergistic Fibre Channel solutions for the rapidly growing SAN marketplace.
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 uncertainties concerning the identification and integration of appropriate acquisitions and new technical personnel; new and changing technologies and uncertain 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.
About QLogic
A member of the Nasdaq-100© Index, QLogic Corporation sold more Fibre Channel host bus adapters in 1999 than any other manufacturer in the world according to IDC. The company is also a leading designer and supplier of semiconductor and board-level I/O and enclosure management products targeted at the computer system, storage device and storage subsystem marketplaces. QLogic high-performance controllers are implemented in products from technology leaders such as AMI, Compaq, Dell, Fujitsu, Hitachi, IBM, Iwill, Quantum, Raidtec, Siemens, Sun Microsystems and Unisys. The company's high-performance Fibre Channel and SCSI solutions play a key role in enabling enterprise-level storage area networks (SANs) and the company's enclosure management products monitor and communicate component information that is critical to computer system and storage subsystem reliability and availability. For more information about QLogic and its products, contact QLogic Corp., 26600 Laguna Hills Drive, Aliso Viejo, CA 92656; telephone: 800/662-4471 (sales); 949/389-6000 (corporate); fax: 949/389-6126; home page: qlogic.com.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
QLogic Corporation (``QLogic'') and Ancor Communications, Incorporated, (``Ancor'') plan to file a Registration Statement on Form S-4 and other relevant documents with the Securities and Exchange Commission (the ``SEC'') in connection with the merger, and QLogic and Ancor expect to mail a Joint Proxy Statement/Prospectus to stockholders of QLogic and Ancor containing information about the merger.
Investors and security holders are urged to read the Registration Statement, the Joint Proxy Statement/Prospectus, and other documents filed with the SEC carefully when they are available. The Registration Statement, Joint Proxy Statement/Prospectus, and other filings will contain important information about QLogic, Ancor, the merger, the persons soliciting proxies relating to the merger, their interests in the merger, and related matters. Investors and security holders will be able to obtain free copies of these documents through the website maintained by the SEC at sec.gov. Investors will be able to obtain copies of the documents free of charge from QLogic by directing a request through the Investor Information portion of QLogic's website at qlogic.com or by mail to QLogic Corporation, 26600 Laguna Hills Drive, Aliso Viejo, CA 92656, attention: Investor Relations, telephone: (949) 389-6000. Documents filed by Ancor will be available free of charge from Ancor by directing a request through the Investor Information portion of Ancor's website at ancor.com or by directing a request by mail to Ancor Communications, Incorporated, 6321 Bury Drive, Eden Prairie, MN 55346, attention: Investor Relations, telephone: (612) 932-4000. In addition to the Registration Statement and the Joint Proxy Statement/Prospectus, QLogic and Ancor file annual, quarterly and special reports, proxy statements and other information with the SEC. You may read and copy any reports, statements or other information filed by QLogic or Ancor at the SEC public reference rooms at 450 Fifth Street, N.W., Washington, D.C. 20549 or at any of the SEC's other public reference rooms in New York, New York and Chicago, Illinois. Please call the SEC at 1-800-SEC-0330 for further information on the public reference rooms. QLogic's and Ancor's filings with the SEC are also available to the public from commercial document-retrieval services and at the Web site maintained by the SEC at sec.gov.
INVESTORS SHOULD READ THE JOINT PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN IT BECOMES AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS. NOTHING HEREIN SHALL CONSTITUTE AN OFFER OF ANY SECURITIES FOR SALE.
QLogic, Ancor and their respective directors, executive officers, who may be considered participants in this transaction, and certain other members of management and employees may be soliciting proxies from QLogic's stockholders and Ancor's shareholders in favor of approval and adoption of the merger agreement. Information concerning the participants in the solicitation will be set forth in the Joint Proxy Statement/Prospectus when it is filed with the SEC. In addition, information about QLogic's and Ancor's directors and executive officers is set forth in the Proxy Statements for their respective 1999 Annual Meetings of Stockholders, which are filed with the SEC.
The report contains forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. References made in this report, and in particular, statements regarding the proposed QLogic/Ancor merger are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, the following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: inability to obtain, or meet conditions imposed for, governmental approvals for the merger; failure of the QLogic stockholders or Ancor shareholders to approve the merger; costs related to the merger the risk that the QLogic and Ancor businesses will not be integrated successfully; and other economic, business, competitive and/or regulatory factors affecting the businesses of QLogic and Ancor generally.
For a detailed discussion of these and other cautionary statements concerning QLogic and Ancor and their respective operations, please refer to QLogic's and Ancor's filings with the Securities and Exchange Commission, including their most recent filings on Form 10-K and 10-Q, QLogic's Annual Report to Stockholders and the ``Forward-Looking Statements'' section of the Management's Discussion and Analysis section of QLogic's Form 10-K for the fiscal year ended March 28, 1999 and Form 10-Q for the quarterly period ended December 26, 1999. QLogic's and Ancor's filings with the SEC are also available to the public from commercial document-retrieval services and at the Web site maintained by the SEC at sec.gov.
Trademarks and registered trademarks are the property of the companies with which they are associated.
QLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
ASSETS
April 2, 2000 March 28, 1999
Current assets:
Cash and cash equivalents $ 64,134 $ 43,174
Short term investments 58,671 57,613
Accounts receivable, net 21,647 11,917
Inventories 22,330 10,623
Deferred income taxes 9,211 5,649
Prepaid expenses and other current assets 1,356 1,950
Total current assets 177,349 130,926
Long term investments 39,797 29,760
Property and equipment, net 45,775 10,409
Other assets 4,235 1,828
$ 267,156 $ 172,923
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,743 $ 6,432
Accrued expenses 18,444 13,807
Total current liabilities 24,187 20,239
Total stockholders' equity 242,969 152,684
$267,156 $172,923
QLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
April 2, Mar 28, April 2, Mar 28,
2000 1999 2000 1999
Net revenues $ 60,127 $ 35,076 $203,143 $117,182
Cost of revenues 19,431 11,764 64,241 42,603
Gross profit 40,696 23,312 138,902 74,579
Operating expenses:
Engineering and
development (1) 16,050 6,736 39,993 24,358
Selling and marketing 4,701 3,114 16,724 11,062
General and administrative 1,943 1,888 8,140 5,794
Total operating expenses 22,694 11,738 64,857 41,214
Operating income 18,002 11,574 74,045 33,365
Interest income, net 2,466 1,360 7,703 5,573
Income before income taxes 20,468 12,934 81,748 38,938
Income tax provision 6,960 4,396 27,795 13,239
Net income $ 13,508 $ 8,538 $ 53,953 $ 25,699
Net income per share (2):
Basic $ 0.18 $ 0.12 $ 0.74 $ 0.37
Diluted $ 0.17 $ 0.11 $ 0.70 $ 0.34
Number of shares used
in per share
computations (2):
Basic 73,803 71,186 72,950 70,047
Diluted 78,395 75,715 77,497 74,760
(1) Engineering and development expenses for the three and twelve
month periods ended April 2, 2000 include a $7,536 charge related
to the Company's acquisition of in-process technology from Borg
Adaptive Technologies, Inc.
(2) Share and per share figures have been re-stated for the
periods ended March 28, 1999 to adjust for the Company's 2-for-1
stock splits in fiscal 2000.
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Contact:
QLogic Corporation
Editor's Contact
Thomas R. Anderson, Vice President, CFO
Phone: 949/389-6213
Fax: 949/389-6488
or
QLogic Corporation
Michael R. Manning, Secretary & Treasurer
Phone: 949/389-6399
Fax: 949/389-6487 |
