Delaware | 0-23298 | 33-0537669 | ||
(State of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
26650 Aliso Viejo Parkway, Aliso Viejo, California | 92656 | |
(Address of principal executive offices) | (Zip Code) |
Item 2.02 Results of Operations and Financial Condition | ||||||||
Item 9.01 Financial Statements and Exhibits | ||||||||
SIGNATURES | ||||||||
EXHIBIT INDEX | ||||||||
EX-99.1 |
(d) | Exhibits |
99.1 | Press Release*, dated May 5, 2011, reporting the financial results of QLogic Corporation for its fourth quarter and fiscal year ended April 3, 2011. |
* | The press release is being furnished pursuant to Item 9.01, and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. |
QLOGIC CORPORATION |
||||
May 5, 2011 | /s/ Jean Hu | |||
Jean Hu | ||||
Senior Vice President and Chief Financial Officer | ||||
FOR IMMEDIATE RELEASE
|
Exhibit 99.1 | |
Media Contact: |
||
Sonal Dave |
||
QLogic Corporation |
||
949.533.1655 |
||
sonal.dave@qlogic.com |
||
Investor Contact: |
||
Jean
Hu |
||
QLogic Corporation |
||
949.389.7579 |
||
jean.hu@qlogic.com |
| Net revenue: $152.3 million | ||
| GAAP net income: $33.3 million or $0.31 per diluted share | ||
| Non-GAAP net income: $39.3 million or $0.37 per diluted share | ||
| Operating margin: 23.6% GAAP, 29.5% non-GAAP | ||
| Cash generated from operations: $73.3 million |
| Net revenue: $597.2 million | ||
| GAAP net income: $139.1 million or $1.27 per diluted share | ||
| Non-GAAP net income: $167.8 million or $1.54 per diluted share | ||
| Operating margin: 23.4% GAAP, 30.2% non-GAAP | ||
| Cash generated from operations: $190.6 million |
Three Months Ended | Year Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net revenues |
$ | 152,290 | $ | 145,716 | $ | 597,199 | $ | 549,070 | ||||||||
Cost of revenues |
50,832 | 50,869 | 203,944 | 196,127 | ||||||||||||
Gross profit |
101,458 | 94,847 | 393,255 | 352,943 | ||||||||||||
Operating expenses: |
||||||||||||||||
Engineering and development |
37,005 | 34,537 | 137,654 | 136,831 | ||||||||||||
Sales and marketing |
19,973 | 19,333 | 80,926 | 77,601 | ||||||||||||
General and administrative |
8,588 | 9,319 | 34,148 | 34,242 | ||||||||||||
Special charges |
| 4,315 | 931 | 5,163 | ||||||||||||
Total operating expenses |
65,566 | 67,504 | 253,659 | 253,837 | ||||||||||||
Operating income |
35,892 | 27,343 | 139,596 | 99,106 | ||||||||||||
Interest and other income, net |
929 | 3,605 | 5,187 | 10,601 | ||||||||||||
Income before income taxes |
36,821 | 30,948 | 144,783 | 109,707 | ||||||||||||
Income taxes |
3,505 | 35,774 | 5,693 | 54,759 | ||||||||||||
Net income (loss) |
$ | 33,316 | $ | (4,826 | ) | $ | 139,090 | $ | 54,948 | |||||||
Net income (loss) per share: |
||||||||||||||||
Basic |
$ | 0.32 | $ | (0.04 | ) | $ | 1.29 | $ | 0.47 | |||||||
Diluted |
$ | 0.31 | $ | (0.04 | ) | $ | 1.27 | $ | 0.47 | |||||||
Number of shares used in per
share calculations: |
||||||||||||||||
Basic |
105,295 | 113,343 | 107,647 | 116,037 | ||||||||||||
Diluted |
106,853 | 113,343 | 109,192 | 117,364 |
Three Months Ended | Year Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
GAAP net income (loss) |
$ | 33,316 | $ | (4,826 | ) | $ | 139,090 | $ | 54,948 | |||||||
Items excluded from GAAP net income
(loss): |
||||||||||||||||
Stock-based compensation |
7,896 | 8,269 | 35,007 | 35,694 | ||||||||||||
Amortization of
acquisition-related intangible
assets |
1,156 | 1,612 | 4,623 | 8,331 | ||||||||||||
Special charges |
| 4,315 | 931 | 5,163 | ||||||||||||
Gains recognized on previously
impaired investment securities |
| (1,681 | ) | (312 | ) | (2,286 | ) | |||||||||
Net gains on trading securities |
| (426 | ) | | (426 | ) | ||||||||||
Income tax charges related to
globalization initiative |
| 29,676 | | 29,676 | ||||||||||||
Other income tax effects |
(3,102 | ) | (4,501 | ) | (11,539 | ) | (13,448 | ) | ||||||||
Total non-GAAP adjustments |
5,950 | 37,264 | 28,710 | 62,704 | ||||||||||||
Non-GAAP net income |
$ | 39,266 | $ | 32,438 | $ | 167,800 | $ | 117,652 | ||||||||
Net income (loss) per diluted share: |
||||||||||||||||
GAAP net income (loss) |
$ | 0.31 | $ | (0.04 | ) | $ | 1.27 | $ | 0.47 | |||||||
Adjustments |
0.06 | 0.32 | 0.27 | 0.53 | ||||||||||||
Non-GAAP net income |
$ | 0.37 | $ | 0.28 | $ | 1.54 | $ | 1.00 | ||||||||
Number of shares used in non-GAAP
per diluted share
calculations |
106,853 | 115,561 | 109,192 | 117,364 |
Three Months Ended | Year Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
(unaudited - in thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Non-GAAP Adjustments: |
||||||||||||||||
Cost of revenues: |
||||||||||||||||
Stock-based compensation |
$ | 601 | $ | 590 | $ | 2,563 | $ | 2,629 | ||||||||
Amortization of acquisition-related intangible
assets |
1,156 | 1,612 | 4,623 | 6,445 | ||||||||||||
Total cost of revenue adjustments |
1,757 | 2,202 | 7,186 | 9,074 | ||||||||||||
Operating expenses: |
||||||||||||||||
Engineering and development: |
||||||||||||||||
Stock-based compensation |
3,774 | 4,115 | 16,466 | 18,237 | ||||||||||||
Sales and marketing: |
||||||||||||||||
Stock-based compensation |
1,714 | 1,688 | 7,580 | 6,918 | ||||||||||||
Amortization of acquisition-related intangible
assets |
| | | 1,886 | ||||||||||||
General and administrative: |
||||||||||||||||
Stock-based compensation |
1,807 | 1,876 | 8,398 | 7,910 | ||||||||||||
Special charges |
| 4,315 | 931 | 5,163 | ||||||||||||
Total operating expense adjustments |
7,295 | 11,994 | 33,375 | 40,114 | ||||||||||||
Interest and other income: |
||||||||||||||||
Gains recognized on previously impaired investment
securities |
| (1,681 | ) | (312 | ) | (2,286 | ) | |||||||||
Net gains on trading securities |
| (426 | ) | | (426 | ) | ||||||||||
Total interest and other income adjustments |
| (2,107 | ) | (312 | ) | (2,712 | ) | |||||||||
Total non-GAAP adjustments before income taxes |
9,052 | 12,089 | 40,249 | 46,476 | ||||||||||||
Income taxes: |
||||||||||||||||
Income tax charges related to globalization
initiative |
| 29,676 | | 29,676 | ||||||||||||
Other income tax effects |
(3,102 | ) | (4,501 | ) | (11,539 | ) | (13,448 | ) | ||||||||
Total income tax adjustments |
(3,102 | ) | 25,175 | (11,539 | ) | 16,228 | ||||||||||
Total non-GAAP adjustments |
$ | 5,950 | $ | 37,264 | $ | 28,710 | $ | 62,704 | ||||||||
April 3, 2011 | March 28, 2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 147,780 | $ | 190,308 | ||||
Short-term investment securities |
236,296 | 185,365 | ||||||
Accounts receivable, net |
70,134 | 73,301 | ||||||
Inventories |
26,931 | 19,403 | ||||||
Deferred tax assets |
17,754 | 10,976 | ||||||
Other current assets |
20,753 | 9,845 | ||||||
Total current assets |
519,648 | 489,198 | ||||||
Property and equipment, net |
77,134 | 83,496 | ||||||
Goodwill |
119,748 | 119,748 | ||||||
Purchased intangible assets, net |
12,694 | 17,394 | ||||||
Deferred tax assets |
25,333 | 36,917 | ||||||
Other assets |
2,650 | 3,984 | ||||||
$ | 757,207 | $ | 750,737 | |||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 34,816 | $ | 36,766 | ||||
Accrued compensation |
25,858 | 22,727 | ||||||
Accrued taxes |
6,012 | 2,633 | ||||||
Deferred revenue |
10,431 | 9,240 | ||||||
Other current liabilities |
5,221 | 11,069 | ||||||
Total current liabilities |
82,338 | 82,435 | ||||||
Accrued taxes |
62,565 | 70,577 | ||||||
Deferred revenue |
5,169 | 7,401 | ||||||
Other liabilities |
5,971 | 6,985 | ||||||
Total liabilities |
156,043 | 167,398 | ||||||
Stockholders equity: |
||||||||
Common stock |
208 | 205 | ||||||
Additional paid-in capital |
844,546 | 778,853 | ||||||
Retained earnings |
1,387,765 | 1,248,675 | ||||||
Accumulated other comprehensive income |
614 | 1,206 | ||||||
Treasury stock |
(1,631,969 | ) | (1,445,600 | ) | ||||
Total stockholders equity |
601,164 | 583,339 | ||||||
$ | 757,207 | $ | 750,737 | |||||
Year Ended | ||||||||
April 3, | March 28, | |||||||
2011 | 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 139,090 | $ | 54,948 | ||||
Adjustments to reconcile net income to net cash provided
by operating activities: |
||||||||
Depreciation and amortization |
29,777 | 31,803 | ||||||
Stock-based compensation |
35,007 | 35,694 | ||||||
Amortization of acquisition-related intangible assets |
4,623 | 8,331 | ||||||
Deferred income taxes |
4,425 | 5,999 | ||||||
Net gains on investment securities |
(2,188 | ) | (4,982 | ) | ||||
Other non-cash items |
3,529 | 1,090 | ||||||
Changes in operating assets and liabilities, net of acquisition: |
||||||||
Accounts receivable |
3,113 | (4,432 | ) | |||||
Inventories |
(7,528 | ) | 21,920 | |||||
Other assets |
770 | 487 | ||||||
Accounts payable |
(3,192 | ) | 240 | |||||
Accrued compensation |
3,705 | (6,036 | ) | |||||
Accrued taxes |
(15,522 | ) | 11,827 | |||||
Deferred revenue |
(1,041 | ) | 612 | |||||
Other liabilities |
(4,011 | ) | 4,271 | |||||
Net cash provided by operating activities |
190,557 | 161,772 | ||||||
Cash flows from investing activities: |
||||||||
Purchases of available-for-sale securities |
(278,878 | ) | (244,083 | ) | ||||
Proceeds from sales and maturities of available-for-sale securities |
203,160 | 223,729 | ||||||
Proceeds from disposition of trading securities |
23,800 | 11,425 | ||||||
Distributions from other investment securities |
329 | 5,464 | ||||||
Purchases of property and equipment |
(23,260 | ) | (24,528 | ) | ||||
Acquisition of business, net of cash acquired |
| (14,931 | ) | |||||
Net cash used in investing activities |
(74,849 | ) | (42,924 | ) | ||||
Cash flows from financing activities: |
||||||||
Proceeds from issuance of common stock under stock-based awards |
36,090 | 34,375 | ||||||
Excess tax benefits from stock-based awards |
1,674 | 591 | ||||||
Minimum tax withholding paid on behalf of employees for restricted stock units |
(6,780 | ) | (2,875 | ) | ||||
Purchases of treasury stock |
(189,220 | ) | (163,419 | ) | ||||
Payoff of line of credit assumed in acquisition |
| (934 | ) | |||||
Net cash used in financing activities |
(158,236 | ) | (132,262 | ) | ||||
Net decrease in cash and cash equivalents |
(42,528 | ) | (13,414 | ) | ||||
Cash and cash equivalents at beginning of year |
190,308 | 203,722 | ||||||
Cash and cash equivalents at end of year |
$ | 147,780 | $ | 190,308 | ||||
Three Months Ended | Year Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Host Products |
$ | 109,138 | $ | 103,718 | $ | 429,279 | $ | 396,519 | ||||||||
Network Products |
24,273 | 22,569 | 106,060 | 99,449 | ||||||||||||
Silicon Products |
16,060 | 16,715 | 50,987 | 42,368 | ||||||||||||
Service and other |
2,819 | 2,714 | 10,873 | 10,734 | ||||||||||||
$ | 152,290 | $ | 145,716 | $ | 597,199 | $ | 549,070 | |||||||||
Three Months Ended | Year Ended | |||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
United States |
$ | 66,111 | $ | 64,435 | $ | 264,345 | $ | 250,333 | ||||||||
Asia-Pacific and Japan |
44,973 | 38,423 | 165,779 | 138,775 | ||||||||||||
Europe, Middle East and Africa |
34,099 | 35,264 | 133,698 | 126,966 | ||||||||||||
Rest of world |
7,107 | 7,594 | 33,377 | 32,996 | ||||||||||||
$ | 152,290 | $ | 145,716 | $ | 597,199 | $ | 549,070 | |||||||||