Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

QLogic Dives on Shortfall

QLogic Corp. (Nasdaq: QLGC) shares took a dive in trading today, after the company announced it won't meet revenue expectations this quarter. And some analysts blamed OEM Sun Microsystems Inc. (Nasdaq: SUNW).

In a statement last night (see QLogic Predicts Lower Revenue), QLogic said revenue for its fourth quarter, to be announced April 28, will be about $128 million, instead of the $138 million to $141 million it projected during its January report (see OEM Rains on QLogic's Quarter).

According to CEO H.K. Desai, "A majority of our revenue shortfall is related to a decline in expected orders from two original equipment manufacturers for host bus adapters at the end of the quarter."

HBAs traditionally account for roughly half of QLogic's revenue. The new revenue figure represents a 7 percent sequential decline from last quarter's revenue of $137.1 million. QLogic will meet the low end of its originally projected earnings per share at about $0.36 per share. The company also told analysts its gross margin would be in line with last quarter's 68.7 percent figure.

QLogic isn't naming the OEMs involved, but analysts from American Technology Research, Bear Stearns, Susquehanna Financial Group, and ThinkEquity Partners point to Sun, whose storage results have been disappointing of late, as one of the likeliest suspects (see Dot Hill's Alive & Well and Sun Reduces Q2 Loss). And Bear Stearns and American Technology Research think Hewlett-Packard Co. (NYSE: HPQ) is possibly the other.

  • 1