Feeds

QLogic and Emulex struggling to escape Fibre Channel woes

Will the uptick in both firms' financials pull them through?

Combat fraud and increase customer satisfaction

Businesses exist to make profits. Quarterly results statements provide a window through which to look at how publicly-owned businesses are doing. So, QLogic and Emulex: how are you doing?

QLogic did well in its third fiscal 2014 quarter, which finished on December 29 last year, with profits up both sequentially and annually.

Revenues were $119.4m, which compares to $112.6m a quarter ago and $119.4m again a year ago. The direction is right after a Q1 and Q2 dip. Profits were on a rising trend at $20.6m, admirably more than the $10.9m it posted a quarter ago and the $13.2m profits from Q3 last year.

The background to this is that QLogic spent a lot of money developing its Mount Rainier flash-enhanced adapter card and has yet to see the benefits of that. From fiscal 2012 to fiscal 2013 revenues and profits generally fell and this resulted in the CEO, Simon Biddiscombe, taking a walk in May.

CFO Jean Hu is the interim CEO and she has kept a watchful eye on the numbers and cut costs as well as getting the revenue numbers up. Her tinned quote said: “As a result of our restructuring activities earlier in the year, we have continued our sharper focus on the server and storage connectivity markets and are now operating more effectively and efficiently as reflected in our financial results.”

Analyst outfit Stifel Nicolaus' MD, Aaron Rakers, took a look at the individual unit numbers and said: ”Advanced Connectivity revenue at $98.5m … represented only 1.5 per cent y/y growth on a very easy compare at -19.8 per cent y/y in Q3 fiscal 2013. Legacy Connectivity (primarily discontinued iSCSI and FC switching) revenue was $21.0m… as the company continues … to see a long-tail in its legacy Network Products revenue.”

The Mount Rainier kit, called FabricCache, isn’t generating big bucks yet, and may never do so.

Rakers also said: “QLogic management noted that it is seeing repeat customer business for this product and expects modest revenue contributions in calendar 2014; the company also stated that it would not expect any material contributions through fiscal 2015.”

The whole flash effort could have been a poor investment.

The conversion of customers to newer 16Gbit/s HBAs (Host Bus Adapters) from the prior 8Gbit/s HBAs isn’t progressing that quickly either. It expects a speed-up in the middle of this year.

The company has just bought Brocade’s storage networking adapter business and, hopefully, next quarter will continue the upward trends in both revenues and profits. It expects a $2m contribution next quarter from this business and, hopefully, more than that in the following quarter.

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.