Aliso Viejo-based networking equipment maker QLogic Corp. has exited a line of business as the company searches for a new chief executive.
Interim chief Jean Hu said in a recent conference call with analysts that the company will stop developing what’s called application-specific integrated circuit (ASIC) switches, which are designed to very quickly perform one function, such as determining the transfer route of data.
“We just don’t see the possibility or likelihood that we’d get the meaningful revenue growth and also return-on-investment side back,” said Hu, who took the top post in May after the abrupt resignation of Simon Biddiscombe.
QLogic has invested in ASIC switches for at least seven years but hasn’t been able to take meaningful market share from the segment’s largest players, Brocade Communications Systems Inc. and Cisco Systems Inc., both based in San Jose.
QLogic makes switches, adapter cards and other electronics used for data, storage and server networks.
The latest development comes on the heels of a restructuring that’s expected to save the company about $20 million through an unspecified number of job cuts and consolidation as it focuses efforts on the 16-gigabit fibre-channel and 10-gigabit Ethernet connection markets.
QLogic projects sales in the current quarter of between $108 million and $116 million, in line with Wall Street expectations. It projects an adjusted profit of $14.2 million to $20.5 million.
Analysts on average forecast an adjusted profit of $16.9 million.
Kwikset’s Kevo
Lake Forest-based Kwikset, the top-selling U.S. residential lock maker, released a product that turns your smartphone into an electric key.
The company, part of the Hardware & Home Improvement division of Madison, Wis.-based Spectrum Brands Holdings, partnered with UniKey Technologies Inc. on the Kevo deadbolt, which activates upon touch and authorizes access through Bluetooth technology.
“That all happens within one second,” said Greg Gluchowski, president of the OC-based division, which accounts for about $1.1 billion in annual sales and employs some 500 locally.
Spectrum, which acquired the home improvement consumer products unit last year from Stanley Black & Decker Inc. for about $1.4 billion, saw about $3.2 billion in sales in the 12 months through September 2012, the end of its fiscal year.
Kevo, compatible through an application for Apple’s iPhone 4S and 5, allows for multiple users, sends text notifications when someone enters the home, and identifies that person. It also features two fobs for those without a smartphone.
An Android app is in development, according to Gluchowski.
The product retails for $219 and is available through Amazon, The Home Depot, newegg.com and other retailers.
Florida-based UniKey was featured on the ABC show “Shark Tank” last year, securing a $500,000 investment from Dallas Mavericks owner Mark Cuban and Canadian investor Kevin O’Leary.