QLogic reports 8% sequential growth

By siliconindia   |   Thursday, 17 October 2002, 19:30 IST
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ALISO VIEJO: QLogic Corporation (Nasdaq:QLGC) reported record second quarter revenues of $108.5 million (pro forma), up 8 percent sequentially from $100.8 million in the June 2002 quarter. Fibre Channel revenues were up 10% sequentially to a record $75.6 million representing 70% of the overall business, up from 68% in the prior quarter. Gross margins were 63.0% compared to 63.2% in the previous quarter. Second quarter pro forma net income increased 7% from the previous quarter to a record $27.0 million, or $0.28 per share on a diluted basis compared to $25.3 million, or $0.26 per diluted share, the company announced. Second quarter revenues on a GAAP basis were up 32% compared to net revenues of $80.9 million reported in the September 2001 quarter. The Company's second quarter net income recorded on a GAAP basis was up 45% to $23.0 million or $0.24 per diluted share, compared to $15.9 million or $0.17 per diluted share in the prior year. The pro forma adjustments include the Sun warrants, merger related stock compensation charges and an impairment charge for a technology company investment, net of the related tax effects. "We continue to be encouraged by our strong financial performance," said H.K. Desai, the Company's chairman, CEO and president. "Despite the sluggish overall technology spending across the industry, the company once again experienced strong growth in our Fibre Channel segment and continued moderate growth in our SCSI business. Fibre Channel revenues increased 10% sequentially, while SCSI revenues grew 3% driven by demand from a diverse range of customers." The company also reported an increase in cash and investments, at $571.9 million, an increase of $24.5 million during the quarter. In a separate announcement, QLogic announced today that its Board of Directors has authorized a program to repurchase up to $100 million of the Company's outstanding common stock. The stock repurchase program will be put into effect immediately. Share repurchases by the Company may be made from time to time in the open market and in private transactions over the next two years.