- Delivers net revenue of $122.7 million, up 19% sequentially
- Generates non-GAAP operating margin of 25.5% (17.5% GAAP)
- Achieves non-GAAP diluted EPS of $0.33 ($0.28 GAAP)
ALISO VIEJO, Calif. — (BUSINESS WIRE) — January 28, 2016 — QLogic Corp. (Nasdaq: QLGC), a leading supplier of high performance network infrastructure solutions, today announced its third quarter financial results for the period ended December 27, 2015.
Net revenue for the third quarter of fiscal 2016 was $122.7 million compared to $140.2 million in the same quarter last year. Revenue from Advanced Connectivity Platforms was $112.5 million during the third quarter of fiscal 2016 compared to $124.7 million in the same quarter last year.
Net income on a GAAP basis for the third quarter of fiscal 2016 was $23.4 million, or $0.28 per diluted share, compared to $22.4 million, or $0.25 per diluted share, for the third quarter of fiscal 2015. Net income on a non-GAAP basis for the third quarter of fiscal 2016 was $28.0 million, or $0.33 per diluted share, compared to $31.6 million, or $0.36 per diluted share, for the third quarter of fiscal 2015.
“I am very pleased with our financial performance and execution during the third quarter. We delivered both revenue and non-GAAP earnings per diluted share above the high end of our guidance range,” said Jean Hu, chief financial officer and acting chief executive officer, QLogic. “We believe that as we execute on our strategy to focus on providing differentiated solutions for both Fibre Channel and Ethernet connectivity platforms across enterprise and cloud data centers, we will be well positioned to deliver earnings growth and enhanced shareholder value.”
Business Outlook for the Fourth Quarter of Fiscal 2016
QLogic expects to achieve net revenue in the range of $113 - $119 million for the fourth quarter of fiscal 2016. The Company is forecasting fourth quarter non-GAAP earnings per diluted share of $0.23 - $0.27. QLogic estimates that GAAP earnings per diluted share will be lower than non-GAAP earnings per diluted share by $0.07 - $0.09 per share in the fourth quarter of fiscal 2016. The Company’s forecasted guidance is a forward-looking statement and does not include the effects of future acquisitions/divestitures, unanticipated asset impairments and other special charges, and other non-recurring items not reflective of ongoing operations. Our forward-looking estimates of both GAAP and non-GAAP measures of our financial performance may differ materially from our actual results and should not be relied upon as statements of fact.
Non-GAAP Financial Measures
QLogic uses certain non-GAAP financial measures to supplement financial statements based on GAAP. A summary of the historical non-GAAP financial measures and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial 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.
QLogic’s third quarter fiscal 2016 conference call is scheduled for today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Jean Hu, chief financial officer and acting chief executive officer, will host the conference call. The call is being webcast live at http://ir.qlogic.com. Phone access to participate in the conference call is available at (719) 457-2648, conference ID: 7027428.
The financial information that the company intends to discuss during the conference call will be available on the company’s website at http://ir.qlogic.com for twelve months following the conference call. A replay of the webcast will also be available at http://ir.qlogic.com for twelve months.
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QLogic – the Ultimate in Performance
QLogic (Nasdaq: QLGC) is a global leader and technology innovator in high performance server and storage networking connectivity products. Leading OEMs and channel partners worldwide rely on QLogic for their server and storage networking solutions. For more information, visit www.qlogic.com.
Disclaimer – Forward-Looking Statements
This press release contains statements relating to future results of
the company (including certain beliefs and projections regarding
business and market trends) that are “forward-looking statements” as
defined in the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include without limitation, the company’s
belief that as it executes on its strategy that it will be well
positioned to deliver earnings growth and enhanced shareholder value,
and its ability to achieve the company’s business outlook and financial
guidance. 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; unfavorable economic
conditions; the stock price of the company may be volatile; the
company’s dependence on the networking markets served; the company’s
ability to compete effectively with other companies; the ability to
attract and retain key personnel; the company’s dependence on a small
number of customers; the ability to maintain and gain market or industry
acceptance of the company’s products; the company’s dependence on sole
source and limited source suppliers; the company’s dependence on
relationships with certain third-party subcontractors and contract
manufacturers; uncertain benefits from strategic business combinations,
acquisitions and divestitures; the complexity of the company’s products;
declining average unit sales prices of comparable products; sales
fluctuations arising from customer transitions to new products; seasonal
fluctuations and uneven sales and purchasing patterns with customers and
suppliers; changes in the company’s tax provisions or adverse outcomes
resulting from examination of its income tax returns; international
economic, currency, regulatory, political and other risks; facilities of
the company and its suppliers and customers are located in areas subject
to natural disasters; the ability to protect proprietary rights; the
ability to satisfactorily resolve any infringement claims; a reduction
in sales efforts by current distributors; declines in the market value
of the company’s marketable securities; changes in and compliance with
regulations; difficulties in transitioning to smaller geometry process
technologies; the use of “open source” software in the company’s
products; system security risks, data protection breaches and
cyber-attacks; and the company’s ability to borrow under its credit
agreement is subject to certain covenants.