QLogic posted better-than-expected results for its second fiscal quarter 2008 last night, in a report that highlighted the vendor's intent to mimic Brocade, Cisco, and VMware as a purveyor of data center "fabric."
For the quarter, QLogic's net revenue was $140.3 million. Net income on a GAAP basis was $22.6 million, or 16 cents per diluted share. On a non-GAAP basis, net income was $32.5 million, or 22 cents per diluted share. The company generated $67.2 million in cash from operations during the quarter, and exited the period with $392.1 million in cash and short-term marketable securities as of September 30.
These results were up slightly from the first fiscal quarter, for which QLogic reported net revenue of $139.8 million; net income of $19 million on a GAAP basis and $30.2 million non-GAAP; cash from operations of $35.5 million; and $478.6 million in cash and short-term marketable securities as of July 1.
QLogic broke out its specific market segment figures as follows:
- Host products, comprising Fibre Channel and iSCSI HBAs and InfiniBand HCAs. Revenues were $104.4 million, up 4 percent year on year and flat sequentially.
- Network products, comprising Fibre Channel and InfiniBand switches. Revenues were $22 million, up 8 percent year on year and down 10 percent sequentially.
- Silicon products, comprising protocol chips and management controllers, a market QLogic is exiting. Revenues were $11.5 million, down 43 percent year on year, but up 20 percent sequentially.
Some analysts questioned the unevenness of QLogic's results. "Despite September quarter financial results that beat Street estimates on both the top- and bottom-line, we are becoming more concerned as multiple parts of QLogic's business are changing in ways that are not favorable," writes analyst Laura Conigliaro and colleagues in a Goldman Sachs note today. They cite growth in QLogic's core HBA business as declining, since in June, quarterly revenues were up 14 percent year-on-year as compared with 4 percent this quarter.