_______________
1 Based on calendar year 2014 reports
from the Dell’Oro Group and Crehan Research
Follow QLogic @ twitter.com/qlogic
QLogic – the Ultimate in Performance
QLogic (Nasdaq: QLGC) is a global leader and technology innovator in high performance server and storage networking connectivity products. Leading OEMs and channel partners worldwide rely on QLogic for their server and storage networking solutions. For more information, visit www.qlogic.com.
Disclaimer – Forward-Looking Statements
This press release contains statements relating to future results of the company (including certain beliefs and projections regarding business and market trends, as well as our belief that our focus on server and storage connectivity provides us excellent leverage from both a product development and customer engagement standpoint, our belief that we will continue to execute on our strategy, and that, if we execute on our strategy, we are well positioned to deliver on our top and bottom line growth plans in the coming year) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied in the forward-looking statements. The company advises readers that these potential risks and uncertainties include, but are not limited to: potential fluctuations in operating results; gross margins that may vary over time; unfavorable economic conditions; the stock price of the company may be volatile; the company's dependence on the networking markets served; the ability to maintain and gain market or industry acceptance of the company's products; the company's dependence on a small number of customers; the company's ability to compete effectively with other companies; uncertain benefits from strategic business combinations, acquisitions and divestitures; the ability to attract and retain key personnel; the complexity of the company's products; declining average unit sales prices of comparable products; the company's dependence on sole source and limited source suppliers; the company's dependence on relationships with certain third-party subcontractors and contract manufacturers; sales fluctuations arising from customer transitions to new products; seasonal fluctuations and uneven sales patterns in orders from customers; changes in the company's tax provisions or adverse outcomes resulting from examination of its income tax returns; international economic, currency, regulatory, political and other risks; facilities of the company and its suppliers and customers are located in areas subject to natural disasters; the ability to protect proprietary rights; the ability to satisfactorily resolve any infringement claims; a reduction in sales efforts by current distributors; declines in the market value of the company's marketable securities; changes in and compliance with regulations; difficulties in transitioning to smaller geometry process technologies; the use of "open source" software in the company's products; system security risks, data protection breaches and cyber-attacks; and the company’s ability to borrow under its credit agreement is subject to certain covenants.
More detailed information on these and additional factors that could affect the company's operating and financial results are described in the company's Forms 10-K, 10-Q and other reports filed, or to be filed, with the Securities and Exchange Commission. The company urges all interested parties to read these reports to gain a better understanding of the business and other risks that the company faces. The forward-looking statements contained in this press release are made only as of the date hereof, and the company does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
QLogic and the QLogic logo are registered trademarks of QLogic Corporation. Other trademarks and registered trademarks are the property of the companies with which they are associated.
| QLOGIC CORPORATION | ||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
|
(unaudited — in thousands, except per share amounts) |
||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||
| March 29, | March 30, | March 29, | March 30, | |||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Net revenues | $ | 133,043 | $ | 115,720 | $ | 520,198 | $ | 460,907 | ||||||
| Cost of revenues | 55,497 | 39,422 | 214,146 | 150,800 | ||||||||||
| Gross profit | 77,546 | 76,298 | 306,052 | 310,107 | ||||||||||
| Operating expenses: | ||||||||||||||
| Engineering and development | 36,157 | 36,598 | 144,260 | 147,010 | ||||||||||
| Sales and marketing | 16,690 | 16,410 | 64,330 | 68,367 | ||||||||||
| General and administrative | 7,238 | 9,399 | 32,512 | 32,097 | ||||||||||
| Special charges | 5,648 | 56,524 | 10,520 | 74,853 | ||||||||||
| Total operating expenses | 65,733 | 118,931 | 251,622 | 322,327 | ||||||||||
| Operating income (loss) | 11,813 | (42,633 | ) | 54,430 | (12,220 | ) | ||||||||
| Interest and other income, net | 594 | 1,492 | 763 | 3,260 | ||||||||||
| Income (loss) before income taxes | 12,407 | (41,141 | ) | 55,193 | (8,960 | ) | ||||||||
| Income taxes | 1,259 | 5,638 | 4,600 | 9,306 | ||||||||||
| Net income (loss) | $ | 11,148 | $ | (46,779 | ) | $ | 50,593 | $ | (18,266 | ) | ||||
| Net income (loss) per share: | ||||||||||||||
| Basic | $ | 0.13 | $ | (0.54 | ) | $ | 0.58 | $ | (0.21 | ) | ||||
| Diluted | $ | 0.13 | $ | (0.54 | ) | $ | 0.57 | $ | (0.21 | ) | ||||
| Number of shares used in per share calculations: | ||||||||||||||
| Basic | 87,298 | 87,017 | 87,584 | 87,612 | ||||||||||
| Diluted | 88,969 | 87,017 | 88,463 | 87,612 | ||||||||||
| QLOGIC CORPORATION | ||||||||||||||||
| RECONCILIATION OF GAAP NET INCOME (LOSS) TO | ||||||||||||||||
| NON-GAAP NET INCOME | ||||||||||||||||
|
(unaudited — in thousands, except per share amounts) |
||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| March 29, | March 30, | March 29, | March 30, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| GAAP net income (loss) | $ | 11,148 | $ | (46,779 | ) | $ | 50,593 | $ | (18,266 | ) | ||||||
| Items excluded from GAAP net income (loss): | ||||||||||||||||
| Stock-based compensation | 5,367 | 4,591 | 20,545 | 22,638 | ||||||||||||
| Amortization of acquisition-related intangible assets | 4,382 | 1,408 | 17,299 | 2,138 | ||||||||||||
| Amortization of license fee | 718 | 133 | 2,828 | 133 | ||||||||||||
| Acquisition-related charges | — | 1,517 | 1,226 | 1,517 | ||||||||||||
| Special charges | 5,648 | 56,524 | 10,520 | 74,853 | ||||||||||||
| Gains recognized on previously impaired investment securities |
— |
(425 |
) |
— |
(425 |
) |
||||||||||
| Income tax effects | (2,412 | ) | 3,783 | (6,024 | ) | 219 | ||||||||||
| Total non-GAAP adjustments | 13,703 | 67,531 | 46,394 | 101,073 | ||||||||||||
| Non-GAAP net income | $ | 24,851 | $ | 20,752 | $ | 96,987 | $ | 82,807 | ||||||||
| Net income (loss) per diluted share: | ||||||||||||||||
| GAAP net income (loss) | $ | 0.13 | $ | (0.54 | ) | $ | 0.57 | $ | (0.21 | ) | ||||||
| Adjustments | 0.15 | 0.78 | 0.53 | 1.15 | ||||||||||||
| Non-GAAP net income | $ | 0.28 | $ | 0.24 | $ | 1.10 | $ | 0.94 | ||||||||
| Number of shares used in non-GAAP per diluted share calculations |
88,969 |
87,819 |
88,463 |
88,111 |
||||||||||||
