QLogic: Fiscal 1Q12 Financial Results

(in US$ millions)	1Q11	1Q12
Revenues	142.6	151.6
*Growth*		6%
Net income (loss)	25.4	32.4

QLogic Corp. announced its first quarter financial results for the period ended July 3, 2011.

First Quarter Highlights

Net revenue: $151.6 million
GAAP net income: $32.4 million or $0.31 per diluted share
Non-GAAP net income: $40.3 million or $0.38 per diluted share
Operating margin: 21.5% GAAP, 28.7% non-GAAP
Cash generated from operations: $40.3 million

Financial Results
Net revenue for the first quarter of fiscal 2012 was $151.6 million and increased 6% from $142.6 million in the same quarter last year. Revenue from Host Products was $109.8 million during the first quarter of fiscal 2012 and increased 7% from $102.5 million in the same quarter last year. Revenue from Network Products was $21.9 million during the first quarter of fiscal 2012 compared to $25.6 million in the same quarter last year. Revenue from Silicon Products was $16.8 million during the first quarter of fiscal 2012 and increased 42% from $11.9 million in the same quarter last year.

Net income on a GAAP basis for the first quarter of fiscal 2012 increased to $32.4 million, or $0.31 per diluted share, from $25.4 million, or $0.22 per diluted share, for the first quarter of fiscal 2011. Net income on a non-GAAP basis for the first quarter of fiscal 2012 increased to $40.3 million, or $0.38 per diluted share, from $34.7 million, or $0.30 per diluted share, for the first quarter of fiscal 2011.

"We are very pleased with the performance of our business in the first quarter. Our revenue of $151.6 million in the first quarter was up 6% over the prior year and was at the high end of our guidance range, driven by strength in both Host and Silicon Products," said Simon Biddiscombe, president and chief executive officer, QLogic. "We continue to see tangible benefits from our focus and investments in expansion markets. Our results in the first quarter were highlighted by strong growth in revenue from converged and 10Gb Ethernet products, which grew more than 20% sequentially for the second consecutive quarter."

Comments

Abstracts of the earnings call transcript:

Jean Hu, CFO:
"Our first quarter revenue from Host Products, which are comprised primarily Fiber Channel, converged and Ethernet adapters, $101.8 million, increase of 7% from $102.5 million recorded in the first quarter of last year. First quarter revenue from Network Products, which are comprised primarily of Fiber Channel and InfiniBand switches, 29 – a decrease of 15% from 25.6 million recorded in the fourth quarter of last year, as a result of lower InfiniBand suite revenue.
"We expect total revenue for the second quarter to be in the range of 147 to $155 million. At the middle point of our guidance. Revenue from Host and Network Products is expected to be up approximately 2.5% sequentially.
"We expect revenue from Silicon Products to be approximately $13 million."