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QLogic Lowers Outlook

QLogic's quarterly and fiscal year-end earnings underscored a reduction in enterprise spending and raised eyebrows on Wall Street last night.

For the quarter ended April 7, the company reported revenues of $147.1 million, including $143.2 million from SAN infrastructure products, including HBAs and SAN switches. This represents a 13 percent increase year-on-year but a 6 percent reduction sequentially. (See QLogic Reports Earnings.)

Net income also dropped sequentially to $18.4 million, or 12 cents per diluted share, versus $35.5 million, or 22 cents per share last quarter. Further, gross margins fell due to lower margins on InfiniBand products, which sold quite well.

For fiscal 2007, QLogic reported $586.7 million in revenues, up 19 percent from 2006.

But execs predict a slower quarter and a couple of ongoing challenges. First-quarter guidance is $140 million to $145 million, an average of 5 percent lower.

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