ALISO VIEJO, Calif. — (BUSINESS WIRE) — July 25, 2013 — QLogic Corp. (Nasdaq: QLGC), a leading supplier of high performance network infrastructure solutions, today announced its first quarter financial results for the period ended June 30, 2013.
During early June, the company commenced a restructuring plan designed to enhance product focus and streamline business operations with the goal of driving long-term profitable growth. As a result of the sharpened product focus, the company revised its product categories for revenue reporting. Effective this quarter, revenue is presented in two new categories – Advanced Connectivity Platforms and Legacy Connectivity Products. Net revenue from Advanced Connectivity Platforms and Legacy Connectivity Products for the last five quarters is presented in the accompanying supplemental financial information.
Net revenue for the first quarter of fiscal 2014 was $113.1 million compared to $130.4 million in the same quarter last year. Revenue from Advanced Connectivity Platforms was $93.2 million during the first quarter of fiscal 2014 compared to $108.0 million in the same quarter last year. Revenue from Legacy Connectivity Products was $19.9 million during the first quarter of fiscal 2014 compared to $22.3 million in the same quarter last year.
Loss from continuing operations on a GAAP basis for the first quarter of fiscal 2014 was $(3.1) million, or $(0.03) per diluted share, compared to income from continuing operations of $18.4 million, or $0.19 per diluted share, for the first quarter of fiscal 2013. Loss from continuing operations on a GAAP basis for the first quarter of fiscal 2014 includes special charges of $12.0 million recorded in connection with the restructuring plan. Income from continuing operations on a non-GAAP basis for the first quarter of fiscal 2014 was $16.4 million, or $0.18 per diluted share, compared to $25.3 million, or $0.26 per diluted share, for the first quarter of fiscal 2013.
“I am very pleased with our execution and disciplined financial management during the first quarter. The restructuring activities are progressing according to our plan and we are sharply focused on the server and storage connectivity markets,” said Jean Hu, interim chief executive officer, senior vice president and chief financial officer, QLogic. “With this market focus, I believe we are on the right track to drive the execution of new product opportunities and to deliver improved financial performance.”
QLogic uses certain non-GAAP financial measures to supplement financial statements based on GAAP. A summary of these 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 first quarter fiscal 2014 conference call is scheduled for today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Jean Hu, interim chief executive officer, senior vice president and chief financial officer, will host the conference call. The call is being webcast live via the Internet at http://ir.qlogic.com and www.earnings.com. Phone access to participate in the conference call is available at (888) 299-7207, pass code: 2969688.
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 conference call will be available via webcast 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, as well as our belief that the restructuring
activities are progressing according to our plan and our belief that we
are on the right track to drive the execution of new product
opportunities and to deliver improved financial performance) that are
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. 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: uncertainties whether our
restructuring plan will achieve its stated goals; uncertainty whether
our enhanced product focus will achieve its stated goals; unfavorable
economic conditions; potential fluctuations in operating results; gross
margins that may vary over time; the stock price of the company may be
volatile; the company's dependence on the networking markets served; the
ability to maintain and gain market or industry acceptance of the
company's products; the company's dependence on a small number of
customers; the company's ability to compete effectively with other
companies; the ability to attract and retain key personnel; the
complexity of the company's products; declining average unit sales
prices of comparable 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;
sales fluctuations arising from customer transitions to new products;
seasonal fluctuations and uneven sales patterns in orders from
customers; a reduction in sales efforts by current distributors; 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; uncertain benefits from
strategic business combinations, acquisitions and divestitures; 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.