QLogic Corp. (Nasdaq: QLGC) easily captures the No. 1 spot on a quantitative financial ranking of the top 10 public storage networking companies conducted by Byte and Switch Insider, a new research service from Byte and Switch.
The inaugural report -- The Top 10 Public Storage Networking Companies -- analyzes the industry's biggest players based on their most recently reported quarterly results. The findings are based on 10 key metrics, including quarter-over-quarter revenue growth; revenue per share; operating expenses as a percentage of revenue; and cash flow.
The storage networking companies included in this report, which were selected based on size of market capitalization, are:
- Adaptec Inc. (Nasdaq: ADPT),
- Brocade Communications Systems Inc. (Nasdaq: BRCD),
- EMC Corp. (NYSE: EMC),
- Emulex Corp. (NYSE: ELX),
- Legato Systems Inc. (Nasdaq: LGTO),
- McData Corp. (Nasdaq: MCDTA),
- Network Appliance Inc. (Nasdaq: NTAP),
- QLogic Corp. (Nasdaq: QLGC),
- Storage Technology Corp. (StorageTek) (NYSE: STK), and
- Veritas Software Corp. (Nasdaq: VRTS).
We considered only companies that derive all or a substantial portion of their revenues from storage hardware, software, or services. Thus, we do not include significant storage players such as Hewlett-Packard Co. (NYSE: HPQ), Hitachi Ltd. (NYSE: HIT; Paris: PHA), IBM Corp. (NYSE: IBM), and Sun Microsystems Inc. (Nasdaq: SUNW) because they each have sizeable non-storage-related lines of business.
For the industry at large, the report surfaces several positive data points. For example, nine of the 10 companies (with only the exception of Brocade) have lowered their expense ratios over the last year.