QLogic Corp. (Nasdaq: QLGC) posted record quarterly revenues of $114.2 million, up 5 percent from the previous quarter, keeping up its run of steady growth and providing a positive sign for the storage networking industry at large (see QLogic Q3 Sales Rise).
For the quarter ended December 29, 2002, QLogic's sales of Fibre Channel products were $80.6 million -- the highest in the company's history -- up 7 percent sequentially. Its FC business accounted for 71 percent of total revenue, which was in line with the company's previous guidance of 2 to 5 percent. Net income was $27.5 million, or 29 cents per diluted share, flat compared with $27 million the prior quarter (see QLogic Rips Through Another Quarter).
QLogic is "cautiously optimistic" about its business heading into the new year, said CFO Frank Calderoni on a conference call with analysts. The company expects to see overall revenue for the current quarter increase 2 to 5 percent, with earnings per share in the range of 27 cents to 31 cents per share.
Despite its strong results, shares of QLogic were down 4.4 percent in after-hours trading, at $39.98. The stock closed on Wednesday at $41.83. Analysts have noted that QLogic retains a relatively high valuation (at 8 times revenue) compared with other companies in this sector.
H.K. Desai, president and CEO of QLogic, said storage consolidation will keep driving the company's growth in the next few quarters. He also noted that sales of host bus adapters (HBAs), QLogic's primary product line, aren't necessarily dependent on SAN deployments, since HBAs can be used in direct-attached mode. QLogic also makes Fibre Channel switches and chips, as well as parallel SCSI adapters.
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