QLogic: Fiscal 2Q10 Financial Results

(in US$ millions)	2Q09	2Q10	6 mo. 09	6 mo. 10
Revenues	171.2	131.5	339.6	254.2
Growth		-23%		-24%
Net income (loss)	27.2	16.2	58.8	31.1

QLogic Corp. announced its second quarter financial results for the period ended September 27, 2009.

Second Quarter Highlights

• Net revenue: $131.5 million.
• Net income: $16.2 million GAAP, $25.1 million non-GAAP.
• Net income per diluted share: $0.14 GAAP, $0.21 non-GAAP.
• Cash generated from operations: $31.6 million.
• Cash and investment securities: $340.4 million as of September 27, 2009.

Net revenue for the second quarter of fiscal 2010 was $131.5 million compared to $171.2 million in the same quarter last year. Revenue from Host Products was $94.0 million during the second quarter of fiscal 2010 compared to $119.7 million in the same quarter last year. Revenue from Network Products was $24.5 million during the second quarter of fiscal 2010 compared to $29.8 million in the same quarter last year. Revenue from Silicon Products was $9.6 million during the second quarter of fiscal 2010 compared to $15.7 million in the same quarter last year.

Net income on a GAAP basis for the second quarter of fiscal 2010 was $16.2 million, or $0.14 per diluted share, compared to $27.2 million, or $0.20 per diluted share, for the second quarter of fiscal 2009. Net income on a non-GAAP basis for the second quarter of fiscal 2010 was $25.1 million, or $0.21 per diluted share, compared to $45.2 million, or $0.34 per diluted share, for the second quarter of fiscal 2009.

“We are pleased with our strong financial performance during the second quarter, which was driven by a 7% sequential increase in revenue over our prior fiscal quarter. Our revenue performance, combined with effective operating expense management, yielded results that exceeded our guidance,” said H.K. Desai, chief executive officer, QLogic. “We are cautiously optimistic given the signs of stability and early indicators of recovery we are experiencing in our business. We are encouraged by the improvements we experienced in order trends and shipments during the second quarter and believe we are well positioned to experience continued improvement in financial results.”

QLogic uses certain non-GAAP financial measures to supplement financial statements based on GAAP. A summary of these non-GAAP financial measures and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as a description of the reasons that management believes that these non-GAAP financial measures provide useful information to investors and the additional purposes for which management uses these non-GAAP financial measures is presented in the accompanying financial schedules.