Feeds

QLogic and Emulex struggling to escape Fibre Channel woes

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

Choosing a cloud hosting partner with confidence

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.

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
Stop ROBOT exploitation, cry striking Foxconn workers
HP downturn and automation eroding overtime on China's production lines
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.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.