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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: trendmastr who wrote (28786)	7/25/2001 11:38:28 AM
From: trendmastr	Read Replies (1) \| Respond to of 29386

Piper Jaffrey - Kumar QLogic Corporation (QLGC - $40.74 - Neutral - #) > > June qtr rev of $92M, down 8% Q/Q and up 20% Y/Y, low end of guidance and > below consensus > expectations of $95M. EPS of $0.23 inline with lower expenses. > > Gross margins declined 41bps Q/Q and 290bps Y/Y to 62.7%. Expect GMs to > decline to about 60% over next 2 qtrs. > > Reducing FY02 (Mar) estimates from $407M and $1.04 to $370M and $0.85. > > SCSI (39% mix) down 28% Q/Q to $36M due to high inventory and weak demand. > Expect this segment to > decline 10-15% Q/Q for the next 6 months. Fujitsu (29% mix) is holding > significant inventory of controllers. > > Overall Fibre Channel (FC) revenues (61% mix) up 10% Q/Q to $56M. Within > FC segment, switches were up 12% Q/Q to > $15M. This is well above historical run rate of $9M/qtr. Primary > customers for switches are Sun Microsystems (SUNM) (18% mix) and Inrange > (INRG). > Host Bus Adapters (HBAs) were up 10% to $41M. In the Mar qtr HBAs were > down 15% Q/Q. Primary customers for HBAs > are NTAP, DELL, and IBM. The company plans to expand distribution channel > from about 10% today to 20% end of year. > We are concerned that sales in May not reflect sales out into the year. > > Inventory days were up 10 Q/Q to 125. Turns at 2.9x is well below > historical range of 5-6x. DSOs were up 2 to 51. > > Besides macro concerns, issues impacting stock include OEM inventory > overhang, margin pressure, transition from SCSI, > and delays in adoption cycle for new products.