QLogic: Fiscal 1Q15 Financial Results

(in $ million)	1Q14	1Q15
Revenue	113.1	119.4
*Growth*		6%
Net income (loss)	(3.1)	(6.0)

QLogic Corp. announced its first quarter financial results for the period ended June 29, 2014.

Net revenue for the first quarter of fiscal 2015 was $119.4 million and increased 6% from $113.1 million in the same quarter last year.

Revenue from Advanced Connectivity Platforms was $104.7 million during the first quarter of fiscal 2015 and increased 12% from $93.2 million in the same quarter last year. Revenue from Legacy Connectivity Products was $14.7 million during the first quarter of fiscal 2015 compared to $19.9 million in the same quarter last year.

“Fiscal year 2015 is off to a solid start as we delivered both revenue and non-GAAP earnings per diluted share that exceeded the midpoint of our guidance ranges. Our strong revenue performance was driven by a 12% year-over-year increase in revenue from Advanced Connectivity Platforms,” said Prasad Rampalli, president and CEO, QLogic. “Our team executed very well to further establish QLogic as a leader in data and storage networking connectivity products. We are making significant progress in the enterprise Ethernet market and our revenue from these products is an important contributor to our overall growth. We continue to believe that we are well positioned to experience revenue growth through expanded market opportunities.”

Net income on a GAAP basis for the first quarter of fiscal 2015 increased to $6.0 million, or $0.07 per diluted share, from a net loss of $3.1 million, or $0.03 per diluted share, for the first quarter of fiscal 2014. Net income on a non-GAAP basis for the first quarter of fiscal 2015 increased 13% to $18.5 million, or $0.21 per diluted share, from $16.4 million, or $0.18 per diluted share, for the first quarter of fiscal 2014.

Comments

Jean Hu, CFO:
"Our cash and marketable securities were $250 million or nearly $3 per share at the end of the first quarter.
"Now moving on to our near-term outlook for the second quarter of the fiscal 2015. We expect total revenue to be in the range of $121 million to $127 million. At the midpoint, we expect revenue from Advanced Connectivity Platforms to be up approximately 6% sequentially, driven primarily by a $3 million to $4 million increase in revenue for our Ethernet products.
"We expect revenue from Legacy Connectivity Products to be approximately $30 million. Gross margin is expected to be in the range of 62% to 63%, and operating expenses are expected to be in the range of $55 million to $56 million."

Prasad L. Rampalli, president and CEO:
"We are very encouraged with the momentum and growth prospects for the revenue from our Ethernet products. This revenue doubled year-over-year, primarily due to the NetXtreme II products and represented more than 20% of our revenue from Advanced Connectivity Platforms.
"We are also in active development with our first Gen 6 FC product, which includes 32Gb lengths and many important new features and capabilities. We expect to have prototypes of our 32Gb product in-house this quarter, customer samples later this year and production units in calendar year 2015."