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

To: Bob Frasca who wrote (29009)	7/18/2002 5:44:46 PM
From: windmast	Read Replies (1) \| Respond to of 29386

QLogic Corporation Reports First Quarter Results for Fiscal Year 2003, Product Revenues at Record Level ALISO VIEJO, Calif.--(BUSINESS WIRE)--July 18, 2002--QLogic Corporation (Nasdaq:QLGC), the only end-to-end storage network infrastructure provider, announced today its financial results for the first fiscal quarter ended June 30, 2002. Revenues in the first quarter on a pro forma basis were a record $100.8 million, up 9% sequentially from $92.3 million in the March 2002 quarter. Fibre Channel revenues were up 13% sequentially to a record $68.8 million representing 68% of the overall business, up from 66% in the prior quarter. Gross margins were 63.2% compared to 62.5% in the previous quarter. First quarter pro forma net income increased 20% from the previous quarter to $25.3 million, or $0.26 per share on a diluted basis compared to $21.1 million, or $0.22 per share on a diluted basis. On a pro forma basis, revenues also increased 9% compared to $92.1 million reported for the same quarter a year ago. Fibre Channel revenues grew 23% from $56.0 million in the June 2001 quarter, which represented 61% of the overall business. Pro forma net income increased 15% from $21.9, or $0.23 per share on a diluted basis in the same quarter last year. Net revenues on a GAAP basis for the quarter ended June 30, 2002 were $99.0 million, and are net of a $1.8 million sales discount for warrants issued to Sun Microsystems. First quarter revenues on a GAAP basis are up 10% compared to net revenues of $89.9 million reported in the June 2001 quarter. The Company's first quarter net income recorded on a GAAP basis was up 20% to $23.1 million or $0.24 per diluted share, compared to $19.2 million or $0.20 per diluted share in the prior year. The pro forma adjustments include the Sun warrants, merger and related charges, acquisition related stock compensation charges and amortization of goodwill and intangible assets, net of the related tax effects. The Company's balance sheet was again highlighted by a strong rise in cash and investments, ending the quarter with $547.4 million, an increase of $54.8 million during the quarter. "We are very encouraged by our first quarter results," said H.K. Desai, the Company's chairman, CEO and president. "Despite continued weak economic conditions and sluggish technology spending, the company experienced strong growth in our Fibre Channel segment and continued moderate growth in our SCSI business. Fibre Channel revenues increased 13% sequentially, while SCSI revenues grew 2% driven by demand from a diverse range of customers. These results represent increasing market acceptance of QLogic product brands, especially SANblade host bus adapters." QLogic's first 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, 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 913/981-5572, passcode: 102357 A replay of the conference call will be available via webcast at www.qlogic.com or audio at (719) 457-0820, passcode: 102357. The webcast will be available for 90 days. The audio replay will be available through July 31, 2002. About QLogic (www.qlogic.com) QLogic Corporation (Nasdaq:QLGC) simplifies the process of networking storage for OEMs, resellers and system integrators with the only end-to-end infrastructure in the industry, consisting of award-winning controller chips, host bus adapters, network switches and management software to move data from the storage device through the fabric to the server. QLogic designs and produces solutions based on all storage network technologies including SCSI, iSCSI, InfiniBand and Fibre Channel. A member of the S&P 500 Index, QLogic was recently ranked number 25 on Forbes' Best 200 Small Companies and number 20 on Fortune's 100 Fastest Growing Companies. Note: All QLogic-issued press releases appear on the company's web site (www.qlogic.com). Any announcement that does not appear on the QLogic web site has not been issued by QLogic. Note Regarding Pro Forma Financial Information: Certain portions of this press release include pro forma financial information. Such pro forma information is presented in order to enable meaningful period-to-period comparisons and to facilitate better focus on QLogic's core operating results. You should not rely exclusively on the pro forma financial information contained in this press release in evaluating QLogic's financial condition and performance. Instead, such pro forma information should be considered along with our GAAP financial information contained in this release and in our public filings in order for you to have a complete picture of our financial results for the periods in question. Disclaimer -- Forward Looking Statements 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 new and changing technologies and 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. CONTACT: QLogic Corporation Steve Sturgeon (editorial) 949/389-6268 steve.sturgeon@qlogic.com or Frank Calderoni or Laurie Moreland (investors) 949/389-6418 investor.relations@qlogic.com SOURCE: QLogic Corporation