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For the second quarter, net income of Aliso Viejo, California -based Qlogic plunged 40.5% to $16.16 million or $0.14 per share from $27.16 million or $0.20 per share in the same quarter a year ago.
On a non-GAAP basis, net income was $25.12 million or $0.21 per share, compared to $45.20 million or $0.34 per share in the prior-year quarter. Non-GAAP results excluded stock-based compensation of $9.01 million, amortization of purchased intangible assets, special charges and several other items.
On average, 14 analysts polled by Thomson Reuters expected earnings of $0.18 per share for the quarter. Analysts' estimate typically excludes one-time items.
Qlogic's revenue for the quarter decreased to $131.46 million from $171.20 million in the prior-year quarter, however, beat Street estimates of $125.71 million for the quarter.
Segmental wise, revenue from Host Products dropped to $94.03 million from $119.67 million in the same quarter last year. Revenue from Network Products also declined to $24.49 million from $29.79 million in the year-ago quarter. Revenue from Silicon Products was $9.59 million, down compared to $15.66 million in the prior-year quarter.
Geographically, revenues from United States was $58.54 million, down from $83.70 million recorded in the prior-year quarter. Asia-Pacific and Japan contributed $36.47 million, compared to $36.49 million in the year-earlier quarter. Europe, Middle East and Africa revenue plunged to $27.77 million from $41.99 million in the year-ago quarter. Rest of the world contributed revenues of $8.68 million, a decline from $9.02 million in the comparable quarter last year.
Sequentially, in the first quarter, QLogic reported a profit that plunged to $15.0 million or $0.13 per share as revenues declined sharply to $122.8 million from $168.4 million in the prior-year quarter.
Amongst others in the industry, chip maker Broadcom Corp. (BRCM | Quote | Chart | News | PowerRating), in its second quarter, reported a profit that plunged to $13.40 million or $0.03 per share on substantially lower income from operations and lower revenues. Revenue for the quarter dropped 13.4% to $1.04 billion.
Another player, Brocade Communications Systems, Inc. (BRCD | Quote | Chart | News | PowerRating), reported a swing to loss in the third quarter from a profit last year, notwithstanding a jump in quarterly revenues, impacted adversely by higher operating expenses. Net loss was $21.0 million or $0.05 per share, while revenues jumped 35% to $493.3 million.
For the quarter under review, Qlogic's total operating expenses decreased to $62.91 million from $66.26 million in the year-ago quarter. Operating income was $20.78 million, compared to $49.93 million in the prior-year quarter.
Interest and other income was $2.34 million,compared to invest and other expense of $2.02 million in the comparable quarter last year.
H.K. Desai, chief executive officer said, "We are cautiously optimistic given the signs of stability and early indicators of recovery we are experiencing in our business. We are encouraged by the improvements we experienced in order trends and shipments during the second quarter and believe we are well positioned to experience continued improvement in financial results."
For the six-month period, net income decreased to $31.13 million or $0.26 per share from $58.80 million or $0.44 per share in the year-ago period. Non-GAAP net income was $49.02 million or $0.41 per share, compared to $87.17 million or $0.65 per share in the prior-year period. Net revenues dropped to $161.99 million from $228.85 million in the prior-year period.
On October 13, 2009, brokerage Jefferies & Co initiated a 'Buy' rating on Qlogic shares, with a mean target of $18.29.
LRCX closed Wednesday's regular trading at $18.08, down $0.71 or 3.78%, on a volume of 5.70 million shares. In after-hours, the stock further dropped $0.13 or 0.72%, to trade at $18.00. In the last 52-week period, the stock traded in the range of $8.69 to $19.37, with a three-month average volume of 3.60 million shares.
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