QLogic Beats Expectations, Wall Street UnfazedThursday, May 5, 2011
Aliso Viejo’s QLogic Corp., a maker of electronics for data storage networks, topped expectations with results for the recently ended quarter.
The company posted revenue of $152.3 million in the March quarter, up 5% from a year earlier, as sales for its three main business lines improved.
Analysts on average were expecting revenue of about $151 million.
Adjusted profits hit $39.3 million, up 21% from a year earlier and beating analysts’ expectations of $36 million in profits.
Wall Street was unfazed in afterhours trading with QLogic's shares down about 2% to a market value of $1.9 billion.
QLogic President and Chief Executive Simon Biddiscombe said the quarterly results were driven by the growth of the company’s new circuit boards that converge different networks and its computer products that transfer data faster.
“Our early success in these important expansion markets is key to our longer-term growth plans,” he said. “I believe that we are on the right path to capitalize on the significant incremental opportunities in the expanding high performance data center connectivity market.”
The company didn’t give an outlook for the June quarter.
For the current quarter, analysts are expecting QLogic to see profits of $37 million on sales of $152 million.
QLogic is the top rival of Costa Mesa's Emulex Corp. Both make electronics such as switches and adapter cards that speed up the flow of data on corporate storage networks.