What QLogic Corporation (NASDAQ:QLGC) Results Say?

Posted by George Brook January 31, 2014 0 Comment 976 views

QLogic Corporation (NASDAQ:QLGC) reported its fiscal 2014Q3 earnings of 25 cents/ share, that topped the average analyst estimates by 6 cents. EPS (with the inclusion of stock-based compensation and excluding 1-time items) rose 69.3% y-o-y and 44.3 percent sequentially in quarter. Revenues continued to be flat on a y-o-y basis but rose 6.1% sequentially to $119.4M, which was a little better than the average analyst projections. Revenues were just in-line with the higher-end of company’s guidance of $114.0M -$120.0M.

In the Q3, Advanced Connectivity Platform (the strategic server & storage connectivity products) revenues rose 1.5% y-o-y and 4.7% q-o-q to $98.5 million. QLogic Corporation (NASDAQ:QLGC)’s Legacy connectivity products (the Fibre Channel Switch products & the 1 gig iSCSI products) revenues dropped 6.2% from the same quarter in the previous year but rose 2.8% sequentially to $21.0M .Gross margin rose  50 basis-points (bps) from the same quarter of the previous year and 20 bps from the earlier quarter to 68.0%. This was in-line with the higher-end of company’s guidance of 67.0% -68.0%. The y-o-y growth was mainly due to the favorable product -mix in the quarter. The total operating expense dropped 10.8% y-o-y but was almost plateaued on a sequential basis at $58.8M.

The y-o-y drop was attributed to lower engineering & development costs (which dipped 8.3%) as well as sales & marketing (that dropped  16.6%) costs. QLogic Corporation (NASDAQ:QLGC)’s operating expenses were a little above the management’s expectation of $56.0M. The company QLogic expects its fiscal 2014 Q4 revenues to be in the $110.0M-$116.0M range. Revenues from its Advanced Connectivity Platforms are projected to decrease around 2% on a sequential basis. The company’s acquisition of Brocade’s adapter-business is projected to boost its revenues in the forthcoming quarter. QLogic Corporation (NASDAQ:QLGC)’ management projects that revenues from its Legacy Connectivity Products will be in the $15.0M-$17.0M range.

About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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