Feeds

QLogic quarterly revenues down

But it turns a profit

Application security programs and practises

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." ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.