QLogic Reports First Quarter Results for Fiscal Year 2005
Aliso Viejo, Calif., July 14, 2004 - QLogic Corporation (Nasdaq:QLGC), the company that powers storage area networks (SANs), today announced its first quarter financial results for the period ended June 27, 2004.
Net revenues for the first quarter of fiscal 2005 were $129.8 million and increased 3% from the $126.2 million reported in the comparable quarter last year. Fibre Channel product revenues for the first quarter of fiscal 2005 were $104.8 million and represented 81% of the Company's total revenue. Fibre Channel product revenues for the first quarter were up 12% from the comparable quarter last year. Net income on a GAAP basis for the first quarter of fiscal 2005 was $32.2 million, or $0.34 per share on a diluted basis, and increased 2% from the $31.7 million, or $0.33 per share on a diluted basis, reported in the first quarter of last year.
During the first quarter of fiscal 2005, net revenues increased 1% sequentially from the $128.3 million reported in the fourth quarter of fiscal 2004. Fibre Channel product revenues for the first quarter of fiscal 2005 were up 4% sequentially from the fourth quarter of fiscal 2004. First quarter net income on a GAAP basis declined 2% from the $32.9 million, or $0.34 per share on a diluted basis, reported in the fourth quarter of fiscal 2004.
The Company uses certain non-GAAP measures to supplement financial statements based on GAAP. These non-GAAP measures include an adjustment for merger related stock compensation charges. A description of the purpose and benefit of such non-GAAP financial information is presented below and a reconciliation between the GAAP and non-GAAP measures is included in the accompanying financial data.
Non-GAAP net income for the first quarter of fiscal 2005 was $34.0 million, or $0.36 per share on a diluted basis, and increased 1% from the $33.8 million, or $0.35 per share on a diluted basis, reported in the first quarter of last year. Non-GAAP net income for the first quarter of fiscal 2005 declined 2% sequentially from the $34.7 million, or $0.36 per share on a diluted basis, reported for the fourth quarter of fiscal 2004.
"We are pleased that once again QLogic achieved overall sequential growth in revenue during the first quarter of fiscal 2005," said H.K. Desai, the Company's chairman, chief executive officer and president. "Our strategies to continue the momentum of our financial performance include investment in emerging technologies, increased market share through superior products, time-to-market delivery, and diversification in the markets we address. The execution of these strategies combined with sound fiscal management will position us to provide above market results."
The Company generated $44 million in cash from operations during the first quarter of fiscal 2005 and used $40 million to purchase its common stock pursuant to the Company's initial $100 million stock repurchase program, which was completed in May 2004. The Company recently announced a new $100 million stock repurchase program which commenced on July 1, 2004 and will continue for two years through June 30, 2006. The Company's balance sheet at the end of the first quarter of fiscal 2005 was highlighted by $738 million of cash and short-term investments. QLogic's fiscal 2005 first quarter conference call is scheduled today at 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time). H.K. Desai, chairman of the board, chief executive officer and president, and Tony Massetti, vice president and chief financial officer, will host the conference call. The call is being webcast live via the Internet at www.qlogic.com or via CCBN. Phone access to participate in the conference call is available at (719) 457-2650, pass code: 795800.
The quarterly financial information that the Company intends to discuss during the conference call is included in this press release and will be available on the Company's website at www.qlogic.com for 12 months following the conference call. To listen to a webcast replay of the conference call, please visit the Investor Relations section of the Company's website at www.qlogic.com. The webcast replay will be available for 12 months following the conference call. An audio replay of the conference call will also be available through July 28, 2004 by calling (719) 457-0820, pass code: 795800.
Non-GAAP Financial Measurements
The non-GAAP net income and related net income per share amounts supplement the corresponding financial measurements computed in accordance with generally accepted accounting principles (GAAP) and exclude non-cash merger related stock compensation charges. The Company has provided these non-GAAP financial measures to assist investors to better understand the Company's core operating performance and to enhance comparisons of its core operating performance with historical periods and the operating performance of its competitors. Items excluded from non-GAAP financial measurements are also excluded by management in its evaluation of the core operating performance of the Company and in its evaluation of trends between fiscal periods. In addition, the Company prepares and maintains its budgets and forecasts of future periods on a basis consistent with these non-GAAP financial measurements. Investors should consider non-GAAP measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.
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