QLogic (QLGC) is expected to report Q1 of FY12 earnings after the market close on Thursday, July 28, with a conference call scheduled for 5:00 pm ET.
The consensus estimate is 34c for EPS and $150.04M for revenue, according to First Call. On its last earnings call, management provided Q1 EPS/revenue guidance of 30c-35c and $145M-$153M. Gross margins were guided to 66%-67% although opex is expected to trend slightly up quarter-over-quarter due to employee benefit reinstatement and incremental investment opportunities.
RBC Capital Markets believes QLogic benefited from further adoption of 8Gb Fibre Channel host bus adapters and switches and lower-margin 10GbE products. In addition, RBC believes the company is likely to provide September quarter, Q2 guidance that at least meets the current Street consensus estimates of 36c on $155.36M in revenue. The current consensus estimate for sequential revenue growth of 3%-4% matches QLogic's historical seven-year average seasonality growth rate of up 4%. RBC believes QLogic has a few tailwinds working in its favor that will likely further unfold in the 2H of CY11, including the Fibre Channel edge switch ramps at EMC (EMC) and Hewlett-Packard (HPQ), broad portfolio targeted at the unified fabrics opportunity, and large deployable cash balance that will likely be utilized for accretive share repurchases.