QLogic Reports Second Quarter Results for Fiscal Year 2007.Record Revenue Level Achieved ALISO VIEJO, Calif. -- QLogic Corporation (Nasdaq:QLGC), the leader in Fibre Channel host bus adapters See host adapter. (HBAs), stackable switches and blade server A server architecture that houses multiple server modules ("blades") in a single chassis. It is widely used in datacenters to save space and improve system management. Either self-standing or rack mounted, the chassis provides the power supply, and each blade has its own CPU, memory and switches, today announced its second quarter financial results for the period ended October 1, 2006. Net revenue for the second quarter of fiscal 2007 was a record $145.3 million and increased 22% from $119.0 million in the comparable quarter last year and 6% sequentially. Revenue from SAN Infrastructure Products, which includes HBAs, switches and silicon, was $135.3 million during the second quarter of fiscal 2007, an increase of 22% from the comparable quarter last year and 6% sequentially. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis for the second quarter of fiscal 2007 was $30.4 million, or $0.19 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, and included stock-based compensation expense, acquisition-related charges and the related income tax effects totaling $7.9 million. The stock-based compensation expense was the result of the Company's adoption of Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment ("SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R") in the first quarter of fiscal 2007. Income from continuing operations on a GAAP basis for the second quarter of fiscal 2006, which did not include any amounts for SFAS 123R or acquisition-related charges, was $30.5 million or $0.17 per share on a diluted basis. Income from continuing operations on a GAAP basis for the first quarter of fiscal 2007, which included stock-based compensation expense, acquisition-related charges and the related income tax effects totaling $12.6 million, was $21.1 million or $0.13 per share on a diluted basis. "We are pleased with the strong revenue growth we have achieved during the second quarter, which was driven by a 26% increase in HBA (Host Bus Adapter) See host adapter. revenue from the comparable quarter of last year," said H.K. Desai, the Company's chief executive officer and president. "According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a recent report from Dell'Oro Group for the first six months of 2006, our Fibre Channel HBA market share was 49%, which is an increase of 5 share points from December 2005. Our Fibre Channel HBA market share is now 11 points higher than our nearest competitor." Non-GAAP income from continuing operations for the second quarter of fiscal 2007 was $38.3 million, or $0.24 per share on a diluted basis. These non-GAAP results for the second quarter reflect an improvement over the $30.5 million, or $0.17 per share on a diluted basis, reported for the second quarter of fiscal 2006 and the $33.7 million, or $0.21 per share on a diluted basis, reported for the first quarter of fiscal 2007. The Company uses certain non-GAAP measures to supplement financial statements based on GAAP. A summary of these non-GAAP financial measures and a complete reconciliation of each non-GAAP measure to the most directly comparable GAAP 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. During the second quarter of fiscal 2007, the Company repurchased $56 million of its common stock on the open market as part of the current $200 million stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. The Company has repurchased a total of $86 million of its common stock under this program during fiscal 2007. Since fiscal year 2003, the Company has repurchased a total of $646 million of its common stock under programs authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: by its Board of Directors. The Company generated $78 million in cash from operations during the first six months of fiscal 2007. The Company's balance sheet at the end of the second quarter of fiscal 2007 was highlighted by $537 million of cash and short-term investments. QLogic's fiscal 2007 second 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 president, 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 via CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network . Phone access to participate in the conference call is available at (719) 457-2654, pass code: 1503417. The financial information that the Company intends to discuss during the conference call will be available on the Company's website at www.qlogic.com for 12 months following the conference call. A replay of the conference call will be available via webcast for 12 months on the Company's website at www.qlogic.com. An audio replay of the conference call will also be available through November 7, 2006 at (719) 457-0820 or (888) 203-1112, pass code: 1503417. About QLogic QLogic is a leading supplier of high performance storage networking solutions including Fibre Channel host bus adapters (HBAs), blade server embedded Inserted into. See embedded system. Fibre Channel switches Major manufacturers of Fibre Channel switches are: Brocade, Cisco, McData and Qlogic.
NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. , Network Appliance (1) A specialized device for use on a network. For example, Web servers, cache servers and file servers can be implemented as general-purpose computers with the appropriate software or as network appliances, which are computers dedicated to a single function and cannot do anything and Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. . QLogic is a member of the S&P 500 Index. For more information, go to http://www.qlogic.com. Note: All QLogic-issued press releases appear on the Company's website (www.qlogic.com). Any announcement that does not appear on the QLogic website has not been issued by QLogic. Disclaimer - Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future results of the Company (including certain beliefs and projections regarding business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied in the forward-looking statements. The Company advises readers that these potential risks and uncertainties include, but are not limited to: potential fluctuations in operating results; gross margins that may vary over time; revenues may be affected by changes in IT spending levels; the stock price of the Company may be volatile; the Company's dependence on the storage area network market; the ability to maintain and gain market or industry acceptance of the Company's products; the Company's dependence on a limited number of customers; seasonal fluctuations and uneven sales patterns in orders from customers; the Company's ability to compete effectively with other companies; declining average unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. prices of comparable products; a reduction in sales efforts by current distributors; dependence on sole source and limited source suppliers; the Company's dependence on relationships with certain silicon chip suppliers; the complexity of the Company's products; sales fluctuations arising from customer transitions to new products; the uncertainty associated with SOX (1) (Schema for Object-oriented XML) An XML schema developed by Veo Systems and Muzino Communications, which was submitted to the W3C. SOX is based on DTD, but adds data typing and reuse mechanisms. 404 compliance; environmental compliance costs; terrorist activities and resulting military actions; international economic, regulatory, political and other risks; uncertain benefits from strategic business combinations; the ability to attract and retain key personnel; recognition of compensation expense related to employee stock options and the Company's employee stock purchase plan; the decreased effectiveness of equity compensation; difficulties in implementing smaller geometry process technologies; the ability to protect proprietary rights; the ability to satisfactorily resolve any infringement claims; reliance on third party licenses; the use of "open source" software in our products; changes in our tax provisions or adverse outcomes resulting from examination of our income tax returns; computer viruses and other tampering tampering The adulteration of a thing. See Drug tampering. with the Company's computer systems; and facilities of the Company and its suppliers and customers are located in areas subject to natural disasters. More detailed information on these and additional factors which could affect the Company's operating and financial results are described in the Company's Forms 10-K, 10-Q and other reports filed, or to be filed, with the Securities and Exchange Commission. The Company urges all interested parties to read these reports to gain a better understanding of the many business and other risks that the Company faces. The forward-looking statements contained in this press release are made only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. QLogic and the QLogic logo are registered trademarks of QLogic Corporation. Other trademarks and registered trademarks are the property of the companies with which they are associated. [TABLE OMITTED] [TABLE OMITTED] Non-GAAP Financial Measurements The non-GAAP financial measurements contained herein are a supplement to the corresponding financial measurements prepared in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP). The non-GAAP financial information presented excludes the items summarized in the above table. Management believes these items are not indicative of the Company's on-going core operating performance. The Company has presented non-GAAP income from continuing operations and non-GAAP diluted income from continuing operations per share, on a basis consistent with its historical presentation, to assist investors in understanding the Company's core income from continuing operations and non-GAAP diluted income from continuing operations per share on an on-going basis. The non-GAAP presentation also enhances comparisons of the Company's core net profitability with historical periods and comparisons of the Company's core net profitability with the corresponding results for competitors. Management believes that on-going income from continuing operations and diluted income from continuing operations per share are important measures in the evaluation of the Company's profitability. These non-GAAP financial measures exclude the adjustments described above, and thus provide an overall measure of the Company's on-going net profitability and related profitability on a diluted per share basis. Management uses non-GAAP income from continuing operations in its evaluation of the Company's core after-tax results of operations and trends between fiscal periods and believes that this measure is an important component of its internal performance measurement process. In addition, the Company prepares and maintains its budgets and forecasts for future periods on a basis consistent with this non-GAAP financial measurement. The non-GAAP financial measurements presented herein have certain limitations in that they do not reflect all of the costs associated with the operations of the Company's business as determined in accordance with GAAP. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP information presented by the Company may be different from the non-GAAP measures used by other companies. A summary of the non-GAAP adjustments presented in the table above by the financial statement line impacted is as follows: [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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