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QLogic Profit Tops Expectations

Aliso Viejo-based QLogic Corp., a maker of electronics for data storage networks, reported quarterly results Tuesday that were down from a year earlier but ahead of Wall Street expectations.

Excluding one-time charges for stock compensation and other costs, QLogic reported profits of $36 million for the three months through Dec. 27, down 16% from a year earlier.

On average, analysts were expecting a $33 million profit.

The company posted sales of $149 million, down 9% and topping the $147 million in sales expected by analysts.

QLogic, along with Costa Mesa-based rival Emulex Corp., are seen as benefiting from an uptick in corporate spending on technology this year as well as growing sales in a new storage technology known as “converged networking,” which cuts down on wires and power consumption.

“We experienced strong sequential revenue growth for both our host and network Products, and a substantial sequential improvement in profitability,” Chief Executive H.K. Desai said. “We are clearly benefiting from several growth drivers, including the ongoing server upgrade cycle and the transition to converged networks.”

QLogic didn’t give an outlook for the current quarter in its earnings release.

Wall Street analysts, on average, are expecting adjusted profits of $30 million, up around 30% from a year earlier, and sales of $142 million, up about 9%.

QLogic’s shares were flat in afterhours New York trading on a recent market value of around $2 billion.

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