DOW JONES NEWSWIRES
QLogic Corp.'s (QLGC) fiscal first-quarter profit dropped 53% as
the data-storage company reported declining revenue and lower
margins.
Still, Chief Executive H.K. Desai said the firm saw sales
stability in numerous areas. The maker of chips that help connect
servers with storage devices has suffered along with the rest of
the sector from sliding demand.
For the quarter ended June 28, QLogic reported profit of $15
million, or 13 cents a share, down from $31.6 million, or 24 cents
a share, a year earlier. Excluding items such as stock-compensation
and acquisition-related costs, earnings fell to 20 cents from 31
cents.
Revenue dropped 27% to $122.8 million, including a 25% drop in
the U.S.
Analysts' estimates were for per-share earnings of 18 cents on
revenue of $125 million, according to a poll by Thomson
Reuters.
Gross margin fell to 63.8% from 66.9%.
Shares of QLogic, which was mentioned as a takeover target after
Broadcom Corp. (BRCM) made a failed bid for rival Emulex Corp.
(ELX), closed at $14.07 and inactive in after-hours trading.
-By Kathy Shwiff and John Kell, Dow Jones Newswires;
212-416-2357; Kathy.Shwiff@dowjones.com