QLogic Corporation (QLGC) - NASDAQ
  • Thu, Jun. 16, 3:04 PM
    | Thu, Jun. 16, 3:04 PM
  • Thu, Jun. 16, 9:17 AM
    | Thu, Jun. 16, 9:17 AM | 5 Comments
  • Wed, Jun. 15, 5:32 PM
    | Wed, Jun. 15, 5:32 PM | 13 Comments
  • 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.
    | Wed, Jun. 15, 4:17 PM
  • 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
    | Fri, May 6, 2:58 PM
  • Thu, Jan. 28, 5:38 PM
    | Thu, Jan. 28, 5:38 PM | 6 Comments
  • 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%.
    | Thu, Jan. 28, 4:17 PM
  • Oct. 23, 2015, 12:46 PM
    | Oct. 23, 2015, 12:46 PM | 3 Comments
  • Jul. 31, 2015, 12:46 PM
    | Jul. 31, 2015, 12:46 PM
  • Jul. 31, 2015, 10:18 AM
    • Though officially missing consensus, QLogic's (NASDAQ:QLGC) FQ1 revenue ($113.4M) was slightly above the guidance ($113M) provided in its July 9 warning. Cost cuts EPS ($0.19) top guidance ($0.16-$0.17).
    • However, on its earnings call (transcript), the Fibre Channel/Ethernet connectivity hardware vendor guided for FQ2 revenue of $98M-$106M and EPS of $0.10-$0.16, well below a consensus of $127.1M and $0.23.
    • QLogic notes it saw weak demand from several Fibre Channel server and storage OEM customers in FQ1 due to "weaker-than-expected traditional enterprise server and storage system shipments." Cloud storage demand has been weighing on traditional enterprise sales - QLogic plans direct more resources towards cloud opportunities.
    • The company also forecasts Ethernet revenue will drop Q/Q in FQ2 thanks to a $3M-$4M inventory buildup at a major OEM, and the $3M impact of a transition at an OEM from Ethernet ASICs to adapters. The transition to adapters (higher ASPs) is expected to boost sales in the second half of FY16.
    • In response to the top-line pressures, QLogic is planning a restructuring that aims to lower the company's FY16 (ends March '16) operating expenses to $200M. $52.3M was spent on opex in FQ1, below prior guidance of $55M-$56M and down 9% Y/Y.
    • BMO, D.A. Davidson, and Summit Research have downgraded. BMO's Keith Bachman: "[W]e have concerns that the growth of x86 servers will remain weak with enterprises and (more importantly) attach rates of [10G Ethernet] will continue to be slow to ramp." He respectively forecasts Fibre Channel and Ethernet revenue will drop 9% and 26% in FY16.
    | Jul. 31, 2015, 10:18 AM
  • Jul. 9, 2015, 12:50 PM
    | Jul. 9, 2015, 12:50 PM
  • Jul. 9, 2015, 9:18 AM
    | Jul. 9, 2015, 9:18 AM
  • Jul. 9, 2015, 9:12 AM
    • QLogic (NASDAQ:QLGC) now expects to report FQ1 revenue of $113M and EPS of $0.16-$0.17, well below prior guidance of $124M-$132M and $0.23-$0.27, and a consensus of $128.3M and $0.25.
    • The Fibre Channel/Ethernet connectivity hardware vendor blames "lower than expected demand due to general weakness in the Company's traditional enterprise server and storage markets, and a build-up of inventory at certain of its OEM customers due to a slower next-generation server transition in enterprise environments." Back in April, QLogic blamed top-line weakness it was seeing on the delayed qualification by enterprises of servers running Intel's Grantley Xeon CPUs.
    • Shares have fallen to $11.60 premarket. Full FQ1 results arrive on July 30.
    | Jul. 9, 2015, 9:12 AM
  • May 6, 2015, 9:53 AM
    • Argus Financial has upgraded QLogic (NASDAQ:QLGC) to Buy, and set a $19 target.
    • The upgrade 6 days after the Fibre Channel/Ethernet connectivity hardware maker posted mixed FQ4 results (EPS beat, sales missed) and guided for FQ1 revenue of $128M (+/- 3%) and EPS of $0.23-$0.27 vs. a pre-earnings consensus of $133.3M and $0.25.
    • On its CC (transcript), QLogic blamed the sales weakness on the delayed qualification of servers based on Intel's Grantley Xeon CPUs (previous) among enterprises, while stating it's "very optimistic that the Grantley ramp will accelerate in the second half of FY '16."
    | May 6, 2015, 9:53 AM
  • Apr. 15, 2015, 2:32 PM
    • InfiniBand and Ethernet adapter/switch/controller vendor Mellanox (MLNX +4.8%) is up strongly after Intel reported 19% Y/Y server CPU division growth. Fibre Channel and Ethernet adapter/switch/controller vendor QLogic (QLGC +2.4%) is also having a good day.
    • On its CC (transcript), Intel (NASDAQ:INTC) stated its Grantley Xeon E5 CPUs (launched last September, used in HPC deployments featuring Mellanox hardware) now account for over half of its 2-socket server CPU volume. Not surprisingly, the company also reported seeing strong cloud and telco server CPU demand.
    • Mellanox reports on April 21. QLogic hasn't set a calendar Q1 earnings date yet.
    | Apr. 15, 2015, 2:32 PM
  • Feb. 25, 2015, 4:48 PM
    • In tandem with its FQ1 results, Avago (NASDAQ:AVGO) announces it's buying Fibre Channel/Ethernet connectivity hardware maker Emulex (NYSE:ELX) for $609M net of cash and debt, or $8/share. The price represents a 26% premium to Emulex's Wednesday close.
    • The deal is expected to be funded with cash on hand, and to close in the second half of Avago's FY15 (ends Nov. 1). It's expected to be immediately accretive.
    • Avago is less than a year removed from buying LSI, whose product line includes RAID storage controllers, storage adapter cards, hard drive SoCs, and network processors. Much of Emulex's product line, which includes Fibre Channel and Ethernet adapter cards, Ethernet and storage controllers, and network monitoring hardware, is complementary to LSI's and/or services the same hardware OEMs.
    • Avago is up 5.3% AH to $118.64 following the acquisition news, its FQ1 EPS beat, and strong FQ2 revenue guidance. Emulex is up 24.8% to $7.94. Emulex archrival QLogic (NASDAQ:QLGC) is up 4% to $15.16.
    | Feb. 25, 2015, 4:48 PM
Company Description
QLogic Corp. engages in the designs and supplies of network infrastructure products that provide, enhance and manage computer data communication. Its products include adapters, switches and ASICs. The company was founded in November 1992 and is headquartered in Aliso Viejo, CA.
Sector: Technology
Industry: Semiconductor - Integrated Circuits
Country: United States