QLogic: Fiscal 4Q12 Financial Results

QLogic Corp. announced its financial results for the fourth quarter and fiscal year ended April 1, 2012.

As previously announced at the end of February, the company completed the sale of the product lines and certain assets associated with its IB business to Intel Corporation for $125 million. As a result of this transaction, the financial information for the IB business has been presented as discontinued operations for all periods.

Fourth Quarter Highlights

• Net revenue: $135.1 million
• GAAP income from continuing operations: $29.5 million or $0.29 per diluted share
• Non-GAAP income from continuing operations: $34.7 million or $0.34 per diluted share
• Operating margin: 21.4% GAAP, 27.1% non-GAAP
• Cash and marketable securities: $538.0 million as of April 1, 2012

Fiscal Year Highlights

• Net revenue: $558.6 million
• GAAP income from continuing operations: $119.4 million or $1.16 per diluted share
• Non-GAAP income from continuing operations: $142.3 million or $1.39 per diluted share
• Operating margin: 23.2% GAAP, 29.0% non-GAAP
• Cash generated from operations: $166.2 million

Financial Results
Net revenue for the fourth quarter of fiscal 2012 was $135.1 million compared to $146.1 million in the fourth quarter last year, which included fourteen weeks. Revenue from Host Products was $105.6 million during the fourth quarter of fiscal 2012 compared to $109.0 million in the same quarter last year. Revenue from Network Products was $16.3 million during the fourth quarter of fiscal 2012 compared to $21.0 million in the same quarter last year. Revenue from Silicon Products was $13.1 million during the fourth quarter of fiscal 2012 compared to $16.1 million in the same quarter last year.

Income from continuing operations on a GAAP basis for the fourth quarter of fiscal 2012 was $29.5 million, or $0.29 per diluted share, compared to $36.8 million, or $0.34 per diluted share, for the fourth quarter of fiscal 2011. Income from continuing operations on a non-GAAP basis for the fourth quarter of fiscal 2012 was $34.7 million, or $0.34 per diluted share, compared to $41.7 million, or $0.39 per diluted share, for the fourth quarter of fiscal 2011.

Net revenue for fiscal 2012 increased to $558.6 million from $558.4 million in fiscal 2011, which included 53 weeks. Income from continuing operations on a GAAP basis for fiscal 2012 was $119.4 million, or $1.16 per diluted share, compared to $141.3 million, or $1.29 per diluted share for fiscal 2011. Net income from continuing operations on a non-GAAP basis for fiscal 2012 was $142.3 million, or $1.39 per diluted share, compared to $164.9 million, or $1.51 per diluted share for fiscal 2011.

Net income on a GAAP basis, including the gain on sale of the IB business and the related results from discontinued operations, for the fourth quarter of fiscal 2012 was $138.3 million, or $1.37 per diluted share. Net income on a GAAP basis for fiscal 2012 was $229.4 million, or $2.23 per diluted share.

"We are very pleased with our execution, continued market leadership and disciplined financial management during fiscal 2012. The recent sale of our InfiniBand business has resulted in improved focus on high growth opportunities in converged networking, Ethernet and storage networking, as well as allowing for incremental investment in new opportunities to expand our served markets," said Simon Biddiscombe, president and CEO, QLogic. "Our focus on high performance network connectivity capitalizes on significant end-user trends in virtualized data centers, the cloud, Web 2.0 and the converged enterprise."

Our fourth quarter revenue from host products, which are comprised primarily of FC, converged and the 10GbE adapters, was $105.6 million compared $109 million recorded in the fourth quarter of last year. Excluding the impact of the extra week in fiscal 2011, our fourth quarter revenue from host products was flat with the same quarter last year.