QLogic: Fiscal 3Q08 Financial Results

QLogic Corp. announced its third quarter financial results
for the period ended December 30, 2007.

Third Quarter Highlights

• Net revenue was a record $158.0 million.
• Net income: $31.9 million GAAP, $41.0 million non-GAAP.
• Net income per diluted share: $0.23 GAAP, $0.30 non-GAAP.
• Cash generated from operations was $59.8 million.
• $378.4 million in cash and short-term marketable securities as
  of December 30.
• Repurchased $63.5 million of outstanding common stock.

Net revenue for the third quarter of fiscal 2008 was a record
$158.0 million. Revenue from Host Products, which are comprised
primarily of Fibre Channel and iSCSI Host Bus Adapters (HBAs) and
InfiniBand Host Channel Adapters (HCAs), was $118.9 million during the
third quarter of fiscal 2008 and increased 4% from $114.6 million in
the comparable quarter last year. Revenue from Network Products, which
are comprised primarily of Fibre Channel and InfiniBand switches, was
$27.8 million during the third quarter of fiscal 2008 and increased
17% from $23.8 million in the comparable quarter last year. Revenue
from Silicon Products, which are comprised primarily of protocol chips
and management controllers, was $9.3 million during the third quarter
of fiscal 2008 and decreased 46% from $17.0 million for the comparable
quarter last year.

Net income on a GAAP basis for the third quarter of fiscal 2008
was $31.9 million, or $0.23 per diluted share, and included
stock-based compensation expense, acquisition-related charges, and the
related income tax effects. Net income on a GAAP basis for the third
quarter of fiscal 2007 was $35.5 million, or $0.22 per diluted share,
and included stock-based compensation expense, acquisition-related
charges, and the related income tax effects. Net income on a non-GAAP
basis for the third quarter of fiscal 2008 was $41.0 million, or $0.30
per diluted share.

"We are very pleased with our overall financial performance during
the third quarter. We achieved record revenue of $158 million, which
increased 13% sequentially from the September quarter," said H. K.
Desai, QLogic’s chief executive officer. "Our strong revenue
performance during the quarter was driven by a 13% sequential increase
in revenue from Fibre Channel HBAs and a greater than 20% sequential
increase for both Fibre Channel and InfiniBand switch products."

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.

QLogic’s fiscal 2008 third quarter conference call is scheduled
for today at 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time). H. K.
Desai, chief executive officer, and Tony Massetti, senior vice
president and chief financial officer, will host the conference call.
The call is being webcast live via the Internet at www.qlogic.com and
www.earnings.com. Phone access to participate in the conference call
is available at (913) 312-6685, pass code: 8417136.

QLogic Corp.