QLogic: Fiscal 2Q09 Financial Results

QLogic Corp. announced its second quarter financial results for the period ended September 28, 2008.

Second Quarter Highlights

• Net revenue increased 22% from the comparable quarter last year to a record $171.2 million.
• Net income: $27.2 million GAAP, $45.2 million non-GAAP.
• Net income per diluted share: $0.20 GAAP, $0.34 non-GAAP.
• Cash generated from operations was $55.2 million.
• $421.0 million in cash and marketable securities as of September 28, 2008.

Financial Results
Net revenue for the second quarter of fiscal 2009 was $171.2 million and increased 22% from $140.3 million in the comparable quarter last year. Revenue from Host Products, which are comprised primarily of Fibre Channel and iSCSI host bus adapters and InfiniBand host channel adapters, was $119.7 million during the second quarter of fiscal 2009 and increased 15% from $104.4 million in the comparable quarter last year. Revenue from Network Products, which are comprised primarily of Fibre Channel and InfiniBand switches, was $29.8 million during the second quarter of fiscal 2009 and increased 36% from $22.0 million in the comparable quarter last year. Revenue from Silicon Products, which are comprised primarily of protocol chips, was $15.7 million during the second quarter of fiscal 2009 and increased 36% from $11.5 million in the comparable quarter last year.

Net income on a GAAP basis for the second quarter of fiscal 2009 was $27.2 million, or $0.20 per diluted share, and increased from $22.6 million, or $0.16 per diluted share for the second quarter of fiscal 2008. Net income on a GAAP basis for the second quarter of fiscal 2009 includes stock-based compensation expense, acquisition-related charges, impairment charges related to marketable securities, and the related income tax effects and valuation allowance on deferred tax assets. Net income on a non-GAAP basis for the second quarter of fiscal 2009 was $45.2 million, or $0.34 per diluted share, and increased from $32.5 million, or $0.22 per diluted share for the second quarter of fiscal 2008.

"We are very pleased with our strong financial performance and record revenue during the second quarter despite significant challenges as a result of the current macro-economic environment," said H.K. Desai, QLogic’s chief executive officer. "Second quarter highlights include the continued ramp of our 8Gb Fibre Channel HBAs and initial revenue from our FCoE converged network adapters."

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.

To read the conference call transcript