QLogic Net Drops 43%, Misses Estimates, Shares Drop

QLogic, a supplier of storage networking solutions, reported a 43% decline in fiscal Q4 net income to $18.4 million, or $0.12/share. Excluding certain items EPS totaled $0.22, or a penny better than last year, but a cent short of analysts' average estimate. Revenues rose 12.7% to $147.1m, but also missed analysts' forecast ($151m). Shares of QLogic gained 1.4% to $17.82 during normal trading. However, they last traded down 7.4% to $16.50 in the after-hours on volume of more than 370,000. QLogic faced higher development and marketing costs y/y, in addition to stock option compensation expenses. The company said it repurchased $77.1m of outstanding common stock during the quarter and had about $544m in cash and short-term marketable securities as of April 1.

Sources: Press release, MarketWatch
Commentary: Is QLogic Corporation Looking For A Run? • QLogic: Recent Stock Slump Overdone • Recent Earnings Strength Tied to International Exposure • QLogic Earnings Conference Call Transcript (later today)
Stocks/ETFs to watch: QLogic (QLGC). Competitors: Emulex (ELX), Brocade Communications Systems (BRCD), Broadcom (BRCM). ETFs: PowerShares Dynamic OTC (PWO)

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