More detailed information on these and additional factors that could affect the company's operating and financial results are described in the company's Forms 10-K, 10-Q and other reports filed, or to be filed, with the Securities and Exchange Commission. The company urges all interested parties to read these reports to gain a better understanding of the business and other risks that the company faces. The forward-looking statements contained in this press release are made only as of the date hereof, and the company does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
QLogic and the QLogic logo are registered trademarks of QLogic Corporation. Other trademarks and registered trademarks are the property of the companies with which they are associated.
| QLOGIC CORPORATION | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
|
(unaudited — in thousands, except per share amounts) |
||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
|
December 28,
2014 |
December 29,
2013 |
December 28,
2014 |
December 29,
2013 |
|||||||||
| Net revenues | $ | 140,203 | $ | 119,449 | $ | 387,155 | $ | 345,187 | ||||
| Cost of revenues | 57,802 | 38,446 | 158,649 | 111,378 | ||||||||
| Gross profit | 82,401 | 81,003 | 228,506 | 233,809 | ||||||||
| Operating expenses: | ||||||||||||
| Engineering and development | 34,802 | 35,235 | 108,103 | 110,412 | ||||||||
| Sales and marketing | 16,153 | 16,113 | 47,640 | 51,957 | ||||||||
| General and administrative | 7,677 | 7,406 | 25,274 | 22,698 | ||||||||
| Special charges | 69 | 1,947 | 4,872 | 18,329 | ||||||||
| Total operating expenses | 58,701 | 60,701 | 185,889 | 203,396 | ||||||||
| Operating income | 23,700 | 20,302 | 42,617 | 30,413 | ||||||||
| Interest and other income (expense), net | (269 | ) | 970 | 169 | 1,768 | |||||||
| Income before income taxes | 23,431 | 21,272 | 42,786 | 32,181 | ||||||||
| Income taxes | 996 | 686 | 3,341 | 3,668 | ||||||||
| Net income | $ | 22,435 | $ | 20,586 | $ | 39,445 | $ | 28,513 | ||||
| Net income per share: | ||||||||||||
| Basic | $ | 0.26 | $ | 0.24 | $ | 0.45 | $ | 0.32 | ||||
| Diluted | $ | 0.25 | $ | 0.24 | $ | 0.45 | $ | 0.32 | ||||
| Number of shares used in per share calculations: | ||||||||||||
| Basic | 87,728 | 86,855 | 87,679 | 87,810 | ||||||||
| Diluted | 88,527 | 87,186 | 88,294 | 88,209 | ||||||||
| QLOGIC CORPORATION | |||||||||||||||
| RECONCILIATION OF GAAP NET INCOME TO | |||||||||||||||
| NON-GAAP NET INCOME | |||||||||||||||
|
(unaudited — in thousands, except per share amounts) |
|||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
|
December 28,
2014 |
December 29,
2013 |
December 28,
2014 |
December 29,
2013 |
||||||||||||
| GAAP net income | $ | 22,435 | $ | 20,586 | $ | 39,445 | $ | 28,513 | |||||||
| Items excluded from GAAP net income: | |||||||||||||||
| Stock-based compensation | 4,903 | 5,058 | 15,178 | 18,047 | |||||||||||
| Amortization of acquisition-related intangible assets | 4,350 | 243 | 12,917 | 730 | |||||||||||
| Amortization of license fee | 716 | — | 2,110 | — | |||||||||||
| Acquisition-related charges | 192 | — | 1,226 | — | |||||||||||
| Special charges | 69 | 1,947 | 4,872 | 18,329 | |||||||||||
| Income tax effects | (1,030 | ) | (2,237 | ) | (3,612 | ) | (3,564 | ) | |||||||
| Total non-GAAP adjustments | 9,200 | 5,011 | 32,691 | 33,542 | |||||||||||
| Non-GAAP net income | $ | 31,635 | $ | 25,597 | $ | 72,136 | $ | 62,055 | |||||||
| Net income per diluted share: | |||||||||||||||
| GAAP net income | $ | 0.25 | $ | 0.24 | $ | 0.45 | $ | 0.32 | |||||||
| Adjustments | 0.11 | 0.05 | 0.37 | 0.38 | |||||||||||
| Non-GAAP net income | $ | 0.36 | $ | 0.29 | $ | 0.82 | $ | 0.70 | |||||||
