Feeds

QLogic quarterly revenues down

But it turns a profit

Internet Security Threat Report 2014

QLogic's first fiscal 2010 revenues were 27 per cent down at $122.8m with net income down 53 per cent to $15m - but at least it was a profit.

Comparisons with the year-ago quarter are all bad. Host products revenues - the HBAs - showed a 27 per cent drop to $88.3m, network products - FC and InfiniBand switches - recorded a 16 per cent drop to $25.0m, and silicon products fell 52 per cent to $7.4m.

Compared to the previous quarter, though, the results are much better. H K Desai, QLogic's CEO, said: "On a sequential basis, revenue from host products and netware products was flat and revenue from silicon products was down 46 per cent.

He thinks the financial outlook is improving: "Despite the fact that we continue to experience effects of the broad macroeconomic slowdown, we are encouraged by the signs of stability we are seeing. This includes a number of factors.

"First, we are seeing signs of stability in our business with our key OEM customers. Second, variety of spending in the second half of our calendar year 2009 and 2010 has stopped eroding and in certain cases has started to improve."

According to the earnings call transcript, Desai reckons QLogic has the largest installed base of Fibre Channel HBAs, with the lead increasing in the quarter: "QLogic achieved over 56 per cent revenue market share in Fibre Channel adaptors, a full 19 point lead over our nearest competitor (Emulex). This is the widest lead we have in our history."

He asserts that this installed base represents a great opportunity for QLogic's Converged Network Adapters (CNA) that run the Fibre Channel over Ethernet (FCoE) protocol. Customers will also need more and better adapters as they refresh their servers to take advantage of Intel Nehalem chips and virtualisation.

Desia sees much better financial weather ahead: "We are seeing clear signs of stableness within our business and this is reflected in the revenue performance of our host and network products in the first fiscal quarter and in our revenue guidance for the September quarter."

The guidance is for the next quarter's revenues to be $123m - $127m, which would be down 26 per cent - 28 per cent year-on-year but much better sequentially. QLogic, like Seagate, sees the recession bottoming out. But Desai sees flat revenues in the silicon business over the next three or so quarters.

A rise in SAS hard drive shipments will probably reduce demand for FC to SATA bridge chips and so affect QLogic's silicon business.

Analysts asked if Desai would consider licensing QLogic's FCoE technology to a competitor, meaning Broadcom, hungry for FCoE technology after being rebuffed in its Emulex takeover attempt. He replied: "If they can give us a billion dollars, I probably can license my Fibre Channel. I’m talking billion, not million." ®

Internet Security Threat Report 2014

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.