QLogic: Restructuring And Share Gains Continue, Further Upside In 2015
Helix Investment Research
Helix Investment Research
Thu, Aug. 18, 4:55 PM
- The company announced the move earlier this hour.
- Jean Hu was previously SVP, CFO and since August 2015, Acting CEO at QLogic Corporation (NASDAQ:QLGC).
- Marvell Technology Group (MRVL +0.3%) CEO Matt Murphy: "I'm excited to welcome Jean to Marvell. This is a transformational time in the company's history and Jean is a proven financial executive with deep experience in the semiconductor industry. She will be a significant asset to the team as we return Marvell to profitable growth. I'd also like to thank David Eichler, our interim CFO, for his leadership and continued dedication to Marvell during a period of significant change."
Tue, Jul. 26, 5:21 PM
Thu, Jun. 16, 3:04 PM
Thu, Jun. 16, 9:17 AM
Wed, Jun. 15, 5:32 PM
Wed, Jun. 15, 4:17 PM
- Cavium (NASDAQ:CAVM) is buying server/storage connectivity hardware and chip provider QLogic (NASDAQ:QLGC) for an equity value of $1.36B, or an enterprise value of $1B after factoring QLogic's $355M cash balance. The buyout price is equal to $15.50/share, a 14% premium to QLogic's Wednesday close.
- Cavium is paying $11/share in cash and issuing 0.098 shares for each QLogic share. The deal is expected to close in Q3.
- Cavium: "QLogic's leading portfolio of advanced connectivity and storage solutions is highly complementary to Cavium's extensive portfolio of networking, compute, and security solutions. The combination enables Cavium to offer a complete end-to-end offering to customers in Enterprise, Cloud, Data Center, Storage, Telco and Networking markets."
- The deal is expected to boost Cavium's 2017 EPS by $0.60-$0.70, and to yield $45M/year in cost synergies by the end of 2017.
- QLGC +12.3% after hours. Investors could be betting a higher offer will arrive.
- Update (6:38PM ET): Cavium is down 7.3% after hours.
Fri, May 6, 2:58 PM
- With near-term sales expectations fairly low going into earnings, QLogic (QLGC +15.4%) has blasted off after beating FQ4 estimates. EPS benefited from a gross margin of 63.2%, better than guidance of 62% thanks to a mix shift towards higher-margin Fibre Channel products relative to Ethernet products.
- On the earnings call, QLogic guided for FQ1 revenue of $112M-$118M and EPS of $0.23-$0.27 vs. a consensus of $117M and $0.25. GM guidance is at 62-63%.
- Unsurprisingly, no comments were made about QLogic's rumored sale efforts. Bloomberg reported last month the company has hired i-bank Qatalyst Partners to explore a sale and other strategic options.
- QLogic's FQ4 results, earnings release
Thu, May 5, 4:41 PM
- QLogic (NASDAQ:QLGC): FQ4 EPS of $0.30 beats by $0.05.
- Revenue of $119.4M (-10.3% Y/Y) beats by $2.58M.
Wed, May 4, 5:35 PM
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Tue, Mar. 1, 7:04 PM
- HyperFlex supports both SSDs and hard drives, and both blade and rack server nodes. It also integrates with Cisco's UCS management software and fabric interconnect switches. Like some rival systems, storage from different nodes is pooled into a common data store, and data is dynamically placed within different tiers (DRAM, flash, disk) based on performance needs.
- Cisco has also launched new hardware for its Nexus 9000 data center switch line. The new switches support 100Gbps ports - Cisco promises pricing on par with what has been provided for 10/40Gbps switches - as well as cloud services for managing capacity and dealing with congestion. The older Nexus 3000 switch line has also been updated.
- HyperFlex takes aim at EMC's VCE converged infrastructure unit - in 2014, Cisco cut its stake in VCE to 10% from 35%. It will also square off against Oracle's engineered systems, IBM's PureSystems line, and HP Enterprise's ConvergedSystem line. IDC estimates EMC/VCE, HP, and Oracle each had over 20% of a $1.6B integrated systems market in Q3.
- ABR Investment's Brad Gaswirth considers the HyperFlex launch a negative for both EMC and NetApp (NASDAQ:NTAP) - Cisco and NetApp have partnered to provide FlexPod, a reference architecture featuring the former's UCS servers and Nexus switches, and the latter's FAS storage systems. IDC estimates Cisco/NetApp's reference system sales totaled $309M in Q3.
- Gaswirth also deems the broader adoption of converged infrastructure hardware a negative for storage connectivity hardware provider QLogic (NASDAQ:QLGC) - QLogic's Fibre Channel adapters/switches help connect standalone servers and storage arrays.
- Earlier: Cisco paying $260M+ to buy cloud app management software firm
Thu, Jan. 28, 5:38 PM
Thu, Jan. 28, 4:17 PM
- QLogic (NASDAQ:QLGC): FQ3 EPS of $0.33 beats by $0.07.
- Revenue of $122.73M (-12.5% Y/Y) beats by $5.36M.
- Shares +3.15%.
Wed, Jan. 27, 5:35 PM| Wed, Jan. 27, 5:35 PM | 9 Comments
Nov. 17, 2015, 9:19 AM
- QLogic's (NASDAQ:QLGC) buyback is good for repurchasing roughly 1/8 of shares at current levels. It will last for a period of up to two years following the first purchase made through it.
- QLGC +1.2% premarket to $12.37. Though having bounced from a summer low of $8.37, QLogic remains below where it traded 10 years ago. Shares topped $20 in 2006 and 2010, only to reverse course.
Oct. 23, 2015, 12:46 PM
Oct. 22, 2015, 4:24 PM
- QLogic (NASDAQ:QLGC): Q2 EPS of $0.17 beats by $0.03.
- Revenue of $103.4M (-18.9% Y/Y) beats by $0.6M.
- Shares -1%.