QLogic Shares Continue Slide After Disappointing GuidanceFriday, May 4, 2012
Shares of QLogic Corp. continued to fall Friday, a day after the Aliso Viejo-based networking-equipment maker posted mixed quarterly earnings and provided an outlook for the current quarter below Wall Street estimates.
Investors sent shares down nearly 12% in midday trading to a market value of about $1.46 billion.
Chief Financial Officer Jean Hu said in a conference call Wednesday following release of March-quarter results that the company expects quarterly sales of $130 million to $135 million through June.
Analysts on average had forecast $141 million in revenue for the current quarter.
Hu projected adjusted profits of $25.6 million to $27.6 million for the June quarter; Wall Street consensus had been $33.5 million.
For the March quarter, QLogic reported a 17% decline in adjusted profit from a year earlier to $34.7 million, just above Wall Street’s $35.1 million consensus forecast.
Quarterly revenue was off almost 8% at $135.1 million.
Analysts on average had expected sales of $137.5 million.
QLogic makes electronics such as switches and adapter cards that speed up the flow of data on corporate storage networks.