Feeds

QLogic dodges recession in second quarter

Host bus adaptors swerves downturn for now

Protecting against web application threats using SSL

QLogic is doing its best to be immune to economic doom and gloom scenarios with a 22 per cent year-on-year increase in quarterly revenues and a 20 per cent net income rise.

The maker of storage networking host bus adapters (HBAs) and switches posted second quarter fiscal 2009 (Q2 fy09) results to September 28 with net revenues of $171.2m compared to Q2 fy08's $140.3m. GAAP net income was $27.2m (Q2 fy08: $22.6m) meaning $0.20 per diluted share versus $0.16/share.

Host products - FC, iSCSI and InfiniBand HBAs - generated $119.7m, up 15 per cent on Q2 fy08's $104.4m with 8gig FC HBAs and the first FCoE converged network adapters (CNAs) doing well, although the CNA figure was compared to zero in Q2 fy08 and likely to be small in absolute terms - so it was the 8gig FC HBAs that really drove this number up.

FC and InfiniBand (IB) switch products did very well, rising 36 percent to $29.8m compared to Q2 fy08's $22.0m, again with 8gig FC being the driver we suspect as IB is pretty niche. Silicon protocol chip revenues also rose 36 per cent to $15.7m from $11.5m.

The gross margin was wonderful - 71.3 per cent. QLogic's CEO, H. K. Desai, was pleased, as well he might: "We are very pleased with our strong financial performance and record revenue during the second quarter despite significant challenges as a result of the current macro-economic environment."

Yet the switch and silicon products 36 per cent rise were not enough on their own to lift overall revenues by 22 per cent. That was helped, according to Wachovia analyst Aaron Rakers, by unexpectedly high royalty and service revenues. Also the HBA revenues were actually down sequentially by 1 per cent and switch products were flat sequentially. This might be what Desai meant with the phrase 'significant challenges'.

Not wanting to rain too much on Desai's parade we might suggest that these less-than-impresive sequential comparisons show a recessionary effect starting to affect QLogic's revenues. Next quarter's numbers could be very different. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
Seagate's triple-headed Cerberus could SAVE the DISK WORLD
... and possibly bring us even more HAMR time. Yay!
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.