QLogic: Fiscal 4Q13 Financial Results

(in $ million)	4Q12	4Q13	FY12	FY13
Revenue	135.1	116.9	558.6	484.5
*Growth*		-13%		*-13%*
Net income (loss)	138.3	29.6	229.4	73.1

QLogic Corp.
announced its financial results for the fourth quarter and fiscal year ended March 31, 2013.

Fourth Quarter Highlights

Net revenue: $116.9 million
GAAP income from continuing operations: $29.6 million or $0.33 per diluted share
Non-GAAP income from continuing operations: $15.6 million or $0.17 per diluted share
Cash and marketable securities: $455.5 million as of March 31, 2013

Fiscal Year Highlights

Net revenue: $484.5 million
GAAP income from continuing operations: $73.6 million or $0.78 per diluted share
Non-GAAP income from continuing operations: $76.1 million or $0.81 per diluted share

Financial Results
Net revenue for the fourth quarter of fiscal 2013 was $116.9 million compared to $135.1 million in the same quarter last year. Revenue from Host Products was $89.6 million during the fourth quarter of fiscal 2013 compared to $105.6 million in the same quarter last year. Revenue from Network Products was $18.2 million during the fourth quarter of fiscal 2013 and increased from $16.3 million in the same quarter last year. Revenue from Silicon Products was $9.1 million during the fourth quarter of fiscal 2013 compared to $13.1 million in the same quarter last year.

qlogic_4q13

Income from continuing operations on a GAAP basis for the fourth quarter of fiscal 2013 was $29.6 million, or $0.33 per diluted share, compared to $29.5 million, or $0.29 per diluted share, for the fourth quarter of fiscal 2012. Income from continuing operations on a GAAP basis for the fourth quarter of fiscal 2013 includes special income tax benefits totaling $19.3 million associated with adjustments to certain tax positions previously subject to an IRS examination and the retroactive reinstatement of the federal research tax credit. Income from continuing operations on a non-GAAP basis for the fourth quarter of fiscal 2013 was $15.6 million, or $0.17 per diluted share, compared to $34.7 million, or $0.34 per diluted share, for the fourth quarter of fiscal 2012.

Net revenue for fiscal 2013 was $484.5 million compared to $558.6 million in fiscal 2012. Income from continuing operations on a GAAP basis for fiscal 2013 was $73.6 million, or $0.78 per diluted share, compared to $119.4 million, or $1.16 per diluted share for fiscal 2012. Income from continuing operations on a non-GAAP basis for fiscal 2013 was $76.1 million, or $0.81 per diluted share, compared to $142.3 million, or $1.39 per diluted share for fiscal 2012.

"We are very pleased with our financial performance in the March quarter. We delivered revenue of $116.9 million and non-GAAP income from continuing operations per diluted share of $0.17, both at the high end of our guidance range," said Simon Biddiscombe, president and CEO, QLogic. "Despite a challenging enterprise data center spending environment, we continue to believe that the investments we have made over the last couple of years position us well to deliver future growth and shareholder value."

Comments

Abstracts the earnings call transcript

Jean Hu, CFO:
"The strength in revenue relative to our guidance was driven by higher-than-expected revenue from Host Products, which had a sequential performance that was better than normal seasonality. Our fourth quarter revenue from Host Products, which are comprised primarily of FC, converged and 10GbE adapters, was $89.6 million compared to $105.6 million recorded in the fourth quarter of last year.
"Our cash and marketable securities were $456 million, or more than $5 per share, at the end of the fourth quarter.
Fourth quarter revenue from Network Products, which are comprised primarily of FC and the converged switches, was $18.2 million, up from $16.3 million recorded in the fourth quarter of last year. Our fourth quarter revenue from Silicon Products, comprised primarily for FC converged with the host and switch and 10GbE chips, was $9.1 million and consistent with our expectations. Our fourth quarter gross margin of 68.3% was consistent with the fourth quarter for last year.
"For the first quarter of fiscal 2014, we expect revenue to be in the range of $110 million to $116 million and the gross margin to be in the range of 67% to 68%. Operating expenses are expected to be approximately $63 million."

Simon Biddiscombe, president an CEO:
"For calendar 2012, QLogic achieved a total revenue share of 53.4% according to Dell'Oro Group, resulting in a lead of 11.5 share points over our nearest competitor.
"For example, recently announced switch products from Dell and IBM targeted at the enterprise and cloud markets have embedded QLogic converged switch technology."