SUMMARY OF RECONCILING ITEMS BETWEEN FORECASTED
NON-GAAP
AND GAAP EARNINGS PER DILUTED SHARE
FOURTH QUARTER OF FISCAL 2016
QLogic is forecasting fourth quarter non-GAAP earnings per diluted share of $0.23 - $0.27. The Company estimates that GAAP earnings per diluted share will be lower than non-GAAP earnings per diluted share by $0.07 - $0.09 per share in the fourth quarter of fiscal 2016. This difference is comprised of the following:
| Stock-based compensation | $0.05 - $0.06 | |||
| Amortization of acquisition-related intangible assets and license fee | $0.05 | |||
| Income taxes | ($0.03 - $0.02) | |||
| $0.07 - $0.09 | ||||
The Company’s forecasted guidance is a forward-looking statement and does not include the effects of future acquisitions/divestitures, unanticipated asset impairments and other special charges, and other non-recurring items not reflective of ongoing operations. Our forward-looking estimates of both GAAP and non-GAAP measures of our financial performance may differ materially from our actual results and should not be relied upon as statements of fact.
| QLOGIC CORPORATION | ||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
|
(unaudited — in thousands) |
||||||||||||
| December 27, | March 29, | |||||||||||
| 2015 | 2015 | |||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 87,069 | $ | 115,241 | ||||||||
| Marketable securities | 212,405 | 201,174 | ||||||||||
| Total cash and marketable securities | 299,474 | 316,415 | ||||||||||
| Accounts receivable, net | 69,736 | 87,436 | ||||||||||
| Inventories | 40,276 | 29,978 | ||||||||||
| Other current assets | 17,023 | 21,802 | ||||||||||
| Total current assets | 426,509 | 455,631 | ||||||||||
| Property and equipment, net | 74,081 | 78,501 | ||||||||||
| Goodwill | 167,232 | 167,232 | ||||||||||
| Purchased intangible assets, net | 66,521 | 77,659 | ||||||||||
| Deferred tax assets | 44,424 | 48,880 | ||||||||||
| Other assets | 18,625 | 20,752 | ||||||||||
| $ | 797,392 | $ | 848,655 | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 27,756 | $ | 40,497 | ||||||||
| Accrued compensation | 16,466 | 22,476 | ||||||||||
| Accrued taxes | 1,439 | 2,711 | ||||||||||
| Other current liabilities | 9,756 | 11,718 | ||||||||||
| Total current liabilities | 55,417 | 77,402 | ||||||||||
| Accrued taxes | 12,616 | 14,516 | ||||||||||
| Other liabilities | 6,937 | 9,721 | ||||||||||
| Total liabilities | 74,970 | 101,639 | ||||||||||
| Stockholders’ equity: | ||||||||||||
| Common stock | 218 | 215 | ||||||||||
| Additional paid-in capital | 1,010,007 | 983,579 | ||||||||||
| Retained earnings | 1,750,891 | 1,722,664 | ||||||||||
| Accumulated other comprehensive loss | (1,392 | ) | (99 | ) | ||||||||
| Treasury stock | (2,037,302 | ) | (1,959,343 | ) | ||||||||
| Total stockholders’ equity | 722,422 | 747,016 | ||||||||||
| $ | 797,392 | $ | 848,655 | |||||||||
|
QLOGIC CORPORATION |
||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
|
(unaudited — in thousands) |
||||||||||||
| Nine Months Ended | ||||||||||||
| December 27, | December 28, | |||||||||||
| 2015 | 2014 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income | $ | 28,227 | $ | 39,445 | ||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 30,618 | 35,511 | ||||||||||
| Stock-based compensation | 12,157 | 15,178 | ||||||||||
| Deferred income taxes | 4,616 | (316 | ) | |||||||||
| Asset impairments | 1,954 | 1,455 | ||||||||||
| Other non-cash items, net | 674 | 1,257 | ||||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | 17,905 | (29,892 | ) | |||||||||
| Inventories | (10,298 | ) | (12,903 | ) | ||||||||
| Other assets | 3,234 | 1,236 | ||||||||||
| Accounts payable | (7,365 | ) | 4,121 | |||||||||
| Accrued compensation | (6,010 | ) | (7,501 | ) | ||||||||
| Accrued taxes, net | (8,543 | ) | 1,147 | |||||||||
| Other liabilities | (3,846 | ) | (11,398 | ) | ||||||||
| Net cash provided by operating activities | 63,323 | 37,340 | ||||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of available-for-sale securities | (173,476 | ) | (123,431 | ) | ||||||||
| Proceeds from sales and maturities of available-for-sale securities | 159,911 | 116,260 | ||||||||||
| Purchases of property and equipment | (21,991 | ) | (15,420 | ) | ||||||||
| Proceeds from disposition of assets held for sale | 7,553 | — | ||||||||||
| Net cash used in investing activities | (28,003 | ) | (22,591 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from issuance of common stock under stock-based awards | 20,010 | 5,144 | ||||||||||
| Minimum tax withholding paid on behalf of employees for restricted stock units | (5,736 | ) | (3,589 | ) | ||||||||
| Purchases of treasury stock | (78,859 | ) | (11,834 | ) | ||||||||
| Other financing activities | 1,093 | (220 | ) | |||||||||
| Net cash used in financing activities | (63,492 | ) | (10,499 | ) | ||||||||
| Net increase (decrease) in cash and cash equivalents | (28,172 | ) | 4,250 | |||||||||
| Cash and cash equivalents at beginning of period | 115,241 | 91,258 | ||||||||||
| Cash and cash equivalents at end of period | $ | 87,069 | $ | 95,508 | ||||||||
QLOGIC CORPORATION
