QLogic Earnings: Despite Profit and Revenue Declines, Still Tops Estimates

QLogic Corp. (NASDAQ:QLGC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Despite topping analysts, year-over-year numbers declined.

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QLogic Corp. Earnings Cheat Sheet

Results: Net income decreased -39.06% to $18.3 million (20 cents per diluted share) in the quarter versus a net gain of $30.03 million in the year-earlier quarter.

Revenue: Decreased 21.79% to $119.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: QLogic Corp. reported adjusted net income of 20 cents per share. By that measure, the company beat the mean analyst estimate of $0.18. It beat the average revenue estimate of $117.45 million.

Quoting Management: “During the December quarter, we reported financial results that exceeded our expectations. We delivered revenue of $119.4 million and non-GAAP income from continuing operations per diluted share of $0.20, both above our original guidance range,” said Simon Biddiscombe, President and CEO, QLogic…

“We are seeing stabilization in our business and I believe our investments in innovative technologies for new market opportunities position us well to deliver future growth.”

Key Stats:

Revenue increased 1.3% from $117.87 million in the previous quarter. Net income increased 54.17% from $11.87 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.22 to a profit $0.15. For the current year, the average estimate has moved down from a profit of $0.88 to a profit of $0.78 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)