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Technology Stocks : Son of SAN - Storage Networking Technologies -- Ignore unavailable to you. Want to Upgrade?

To: J Fieb who wrote (1232)	5/7/1999 1:08:00 PM
From: Sam	Read Replies (1) \| Respond to of 4808

QLogic soars after record earnings COSTA MESA, Calif., May 7 (Reuters) - Shares in QLogic Corp., a supplier of storage area networks, surged more than 25 percent on Friday after the company surprised analysts with record 1999 earnings that almost doubled 1998 earnings. Net income in the year ending March 28 grew 91 percent to $25.7 million, or $1.38 per share, from $13.4 million, or $0.83 per share, a year ago. The group reported revenues of $117.2 million up from $81.4 million in 1998. Shares stood more than $18 higher at $94 in late morning trade against a falling Nasdaq composite. The group, which had announced two stock splits in the past six months, saw revenue balloon 44 percent to $117.2 million from $81.4 million, largely helped by robust growth in its fibre channel line where sales jumped 750 percent. ''Those numbers led to a nice upside surprise, but they also announced that they're getting a new stream of revenue from IDE technology royalty payments,'' said Robert Montague, an analyst with Morgan Keegan & Co. IDE is one of the technology standards in data storage. QLogic said it expected to log record royalty revenues of $3 million related to the use of IDE designs by one of its customers in the first quarter of the fiscal year 2000, boosting the profit outlook for the year ahead. ''It should trade at a healthy premium ahead, driven by the new royalty stream,'' said Ashok Kumar, a technology analyst at Piper Jaffray. Kumar had predicted earnings per share in 1999 at $1.39. He expected earnings per share to grow to $2.05 in the year 2000 and $2.50 in 2001.