QLogic: Fiscal 3Q13 Financial Results

(in US$ million)	3Q12	3Q13	9 mo. 12	9 mo. 13
Revenues	142.8	119.4	423.5	367.6
*Growth*		-16%		*-13%*
Net income (loss)	30.0	13.2	91.1	43.5

QLogic Corp. announced its third quarter financial results for the period ended December 30, 2012.

Third Quarter Highlights

Net revenue: $119.4 million
GAAP income from continuing operations: $13.7 million or $0.15 per diluted share
Non-GAAP income from continuing operations: $18.3 million or $0.20 per diluted share
Operating margin: 12.1% GAAP, 18.1% non-GAAP
Cash and marketable securities: $495.2 million as of December 30, 2012
Cash generated from operations: $32.7 million

Net revenue for the third quarter of fiscal 2013 was $119.4 million compared to $142.8 million in the same quarter last year. Revenue from Host Products was $89.8 million during the third quarter of fiscal 2013 compared to $111.8 million in the same quarter last year. Revenue from Network Products was $20.1 million during the third quarter of fiscal 2013 compared to $18.5 million in the same quarter last year. Revenue from Silicon Products was $9.6 million during the third quarter of fiscal 2013 compared to $12.4 million in the same quarter last year.

Income from continuing operations on a GAAP basis for the third quarter of fiscal 2013 was $13.7 million, or $0.15 per diluted share, compared to $29.2 million, or $0.29 per diluted share, for the third quarter of fiscal 2012. Income from continuing operations on a non-GAAP basis for the third quarter of fiscal 2013 was $18.3 million, or $0.20 per diluted share, compared to $34.5 million, or $0.34 per diluted share, for the third quarter of fiscal 2012.

"During the December quarter, we reported financial results that exceeded our expectations. We delivered revenue of $119.4 million and non-GAAP income from continuing operations per diluted share of $0.20, both above our original guidance range," said Simon Biddiscombe, president and CEO, QLogic. "We are seeing stabilization in our business and I believe our investments in innovative technologies for new market opportunities position us well to deliver future growth."

Comments

Abstracts of the earnings call transcript:

Jean Hu, CFO:
"This is the 70th consecutive quarter of profitability for QLogic.
"For the fourth quarter of fiscal 2013, we expect revenue to be in the range of $112 million to $118 million, and gross margin to be in the range of 67% to 68%."

Simon Biddiscombe, president and CEO:
"When combined with very encouraging recent stabilization we've seen in our business, we expect calendar year 2013 to be a much better year.
"(...) all three top served OEMs are now selling our latest 16Gb FC adapters." [Dell, HP, IBM]