Exhibit 99.1
FOR IMMEDIATE RELEASE
Editor’s Contact:
Steve Sturgeon
QLogic Corporation
Phone: (949) 389-6268
steve.sturgeon@qlogic.com
Investor’s Contact:
Michael Roe
QLogic Corporation
Phone: (949) 389-6440
michael.roe@qlogic.com
QLOGIC REPORTS FOURTH QUARTER
AND FISCAL YEAR 2004 RESULTS
Aliso Viejo, Calif., April 28, 2004 – QLogic Corporation (Nasdaq:QLGC), the company that powers storage area networks (SANs), today announced its financial results for the fourth quarter and fiscal year ended March 28, 2004. These results are consistent with the preliminary results previously announced on March 30, 2004.
Net revenues for the fourth quarter of fiscal 2004 were $128.3 million and increased 6% from the $120.6 million reported in the comparable quarter last year. Fibre Channel revenues for the fourth quarter of fiscal 2004 were $103.0 million and represented 80% of the Company’s total revenue. Fibre Channel revenues for the fourth quarter were up 20% from the comparable quarter last year. Net income on a GAAP basis for the fourth quarter of fiscal 2004 was $32.9 million, or $0.34 per share on a diluted basis and increased 10% from the $29.9 million, or $0.31 per share on a diluted basis, reported in the fourth quarter of last year.
During the fourth quarter of fiscal 2004, net revenues decreased sequentially from the $137.1 million reported in the third quarter of fiscal 2004. Fourth quarter net income on a GAAP basis decreased sequentially from the $35.0 million, or $0.36 per share on a diluted basis, reported in the third quarter of fiscal 2004.
Net revenues for fiscal 2004 were $523.9 million, up 19% from the $440.8 million reported in fiscal year 2003. Net income on a GAAP basis for fiscal 2004 was $133.7 million, or $1.39 per share on a diluted basis. This fiscal year 2004 net income increased 29% from the $103.5 million, or $1.09 per share on a diluted basis reported last year.
The Company uses certain non-GAAP measures to supplement financial statements based on GAAP. These non-GAAP measures include adjustments for merger related stock compensation charges, legal settlements, and in fiscal 2003, sales discounts for stock warrants and an impairment of an investment in a technology company. A description of the purpose and benefit of such non-GAAP financial information is presented below and a reconciliation between the GAAP and non-GAAP measures is included in the accompanying financial data.
Non-GAAP net income for the fourth quarter of fiscal 2004 was $34.7 million, or $0.36 per share on a diluted basis and increased 9% from the $32.0 million, or $0.33 per share on a diluted basis, reported in the fourth quarter of last year. Non-GAAP net income for the fourth quarter of fiscal 2004 declined sequentially from the $37.9 million, or $0.39 per share on a diluted basis reported for the third quarter of fiscal 2004.
During fiscal 2004, the Company’s non-GAAP net income was $142.5 million, or $1.48 per share on a diluted basis. This fiscal year 2004 net income increased 25% from the $114.4 million, or $1.20 per share on a diluted basis, reported last year.
“During fiscal 2004, QLogic achieved a number of milestones, including the establishment of new records for annual revenue and net income. On a GAAP basis, net revenues for fiscal 2004 increased 19% to $524 million and net income increased 29% to $134 million from the prior fiscal year,” said H.K. Desai, the Company’s chairman, chief executive officer and president. “Our overall performance during the fiscal year demonstrated strong revenue growth and profitability. With our current year design wins, we are well positioned for continued growth in fiscal 2005.”
The Company’s balance sheet was again highlighted by an increase in cash and short-term investments, ending the quarter with $743 million. During fiscal 2004, cash and short-term investments increased by $100 million, net of the $57 million the Company used to purchase its common stock pursuant to the previously authorized stock repurchase program. During April 2004, the Company purchased an additional $20 million of its common stock under the stock repurchase program.
QLogic’s fourth quarter and fiscal year 2004 conference call is scheduled today at 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time). H.K. Desai, chairman of the board, chief executive officer and president, and Frank Calderoni, senior vice president and chief financial officer, will host the conference call. The call is being webcast live via the Internet at www.qlogic.com or via CCBN. Phone access to participate in the conference call is available at (913) 981-4901, passcode: 750734.
The quarterly and fiscal year financial information that the Company intends to discuss during the conference call is included in this press release and will be available on the Company’s website at www.qlogic.com for 12 months following the conference call. To listen to a webcast replay of the conference call, please visit the Investor Relations section of the Company’s website at www.qlogic.com. The webcast replay will be available for 12 months following the conference call. An audio replay of the conference call will also be available through May 12, 2004 by calling (719) 457-0820, passcode: 750734.
Non-GAAP Financial Measurements
The non-GAAP net income and related net income per share amounts supplement the corresponding financial measurements computed in accordance with generally accepted accounting principles (GAAP) and excludes non-cash merger related stock compensation charges, legal settlements, sales discounts for stock warrants and an impairment of an investment in a technology company. The Company has provided these non-GAAP financial measures to assist investors to better understand the Company’s core operating performance and to enhance comparisons of its core operating performance with historical periods and the operating performance of its competitors. Items excluded from non-GAAP financial measurements are also excluded by management in its evaluation of the core operating performance of the Company and in its evaluation of trends between fiscal periods. In addition, the Company prepares and maintains all budgets and forecasts of future periods on a basis consistent with these non-GAAP financial measurements. Investors should consider non-GAAP measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.
Powered by QLogic
Since 1993, over 50 million QLogic products have shipped inside servers, workstations, RAID subsystems, tape libraries, disk and tape drives. These products were delivered to small, medium and large enterprises around the world. Powering solutions from leading companies like Cisco, Dell, EMC, Fujitsu, Hitachi, HP, IBM, Network Appliance, Quantum, StorageTek and Sun Microsystems, the broad line of QLogic controller chips, host bus adapters, network switches and management software move data from storage devices through the network fabric to servers. A member of the S&P 500 and NASDAQ 100, QLogic was named to the following during fiscal year 2004: (i) Fortune’s 100 Fastest Growing Companies list for the fourth consecutive year; (ii) Forbes’ Best 200 Small Companies for the fifth consecutive year; and (iii) Business Week’s list of 100 Hot Growth Companies. For more information visit www.qlogic.com.
Note: All QLogic-issued press releases appear on the Company’s website (www.qlogic.com). Any announcement that does not appear on the QLogic website has not been issued by QLogic.
Disclaimer — Forward Looking Statements
This press release contains statements relating to future results of the Company (including certain beliefs and projections regarding business trends) that are “forward-looking statements” as defined within the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied in the forward-looking statements. The Company wishes to advise readers that these potential risks and
uncertainties include, but are not limited to: the volatility of the Company’s stock price; fluctuations in operating results; the dependence on the storage area network market; the ability to maintain and gain market or industry acceptance of the Company’s products; the dependence on a limited number of customers and fluctuations or cancellations in orders from customers; the ability to compete effectively with other companies; a reduction in sales efforts by current distributors; the dependence on relationships with certain silicon chip suppliers and other subcontractors; the complexity of the Company’s products; terrorist activities and resulting military actions; international, economic, regulatory, political and other risks; changes in semiconductor foundry capacity; the ability to maintain or expand upon strategic alliances; the strain on resources caused by rapid growth and expansion; the ability to attract and retain key personnel; and the ability to protect proprietary rights or to satisfactorily resolve any infringement claims.
More detailed information on these and additional factors which 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 many 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 undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
Trademarks and registered trademarks are the property of the companies with which they are associated.
QLOGIC CORPORATION
SUMMARY CONSOLIDATED RESULTS OF OPERATIONS
(unaudited — in thousands, except per share amounts)
Consolidated GAAP Results
| | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
| | Years Ended
|
| | | Mar. 28, | | Dec. 28, | | Mar. 30, | | Mar. 28, | | Mar. 30, |
| | | 2004
| | 2003
| | 2003
| | 2004
| | 2003
|
| Net revenues | | $ | 128,294 | | | $ | 137,064 | | | $ | 120,565 | | | $ | 523,860 | | | $ | 440,809 | |
| Gross profit | | | 89,249 | | | | 94,183 | | | | 79,410 | | | | 357,566 | | | | 281,439 | |
| Operating income | | | 48,625 | | | | 52,879 | | | | 42,569 | | | | 198,757 | | | | 141,863 | |
| Net income | | | 32,864 | | | | 34,952 | | | | 29,889 | | | | 133,673 | | | | 103,473 | |
| Net income per share — diluted | | | 0.34 | | | | 0.36 | | | | 0.31 | | | | 1.39 | | | | 1.09 | |
| Weighted average common shares outstanding — diluted | | | 95,798 | | | | 96,823 | | | | 95,444 | | | | 96,246 | | | | 95,354 | |
Consolidated Results Excluding Non-GAAP Adjustments
| | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
| | Years Ended
|
| | | Mar. 28, | | Dec. 28, | | Mar. 30, | | Mar. 28, | | Mar. 30, |
| | | 2004
| | 2003
| | 2003
| | 2004
| | 2003
|
| Net revenues | | $ | 128,294 | | | $ | 137,064 | | | $ | 120,565 | | | $ | 523,860 | | | $ | 444,037 | |
| Gross profit | | | 89,249 | | | | 94,183 | | | | 79,410 | | | | 357,566 | | | | 284,667 | |
| Operating income | | | 50,494 | | | | 56,499 | | | | 44,640 | | | | 208,250 | | | | 151,864 | |
| Net income | | | 34,733 | | | | 37,888 | | | | 31,960 | | | | 142,482 | | | | 114,416 | |
| Net income per share — diluted | | | 0.36 | | | | 0.39 | | | | 0.33 | | | | 1.48 | | | | 1.20 | |
| Weighted average common shares outstanding — diluted | | | 95,798 | | | | 96,823 | | | | 95,444 | | | | 96,246 | | | | 95,354 | |
QLOGIC CORPORATION
SUMMARY CONSOLIDATED RESULTS OF OPERATIONS (continued)
(unaudited — in thousands)
Description of Non-GAAP Adjustments
A summary of the non-GAAP adjustments reported by QLogic is as follows:
| | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
| | Years Ended
|
| | | Mar. 28, | | Dec. 28, | | Mar. 30, | | Mar. 28, | | Mar. 30, |
| | | 2004
| | 2003
| | 2003
| | 2004
| | 2003
|
| Merger related stock compensation charges | | $ | 1,869 | | | $ | 1,870 | | | $ | 2,071 | | | $ | 7,743 | | | $ | 6,773 | |
| Legal settlements | | | — | | | | 1,750 | | | | — | | | | 1,750 | | | | — | |
| Sales discounts for stock warrants | | | — | | | | — | | | | — | | | | — | | | | 3,228 | |
| Technology company investment impairment | | | — | | | | — | | | | — | | | | — | | | | 3,000 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Pre-tax adjustments | | | 1,869 | | | | 3,620 | | | | 2,071 | | | | 9,493 | | | | 13,001 | |
| Income tax effect | | | — | | | | (684 | ) | | | — | | | | (684 | ) | | | (2,058 | ) |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| After-tax non-GAAP adjustments | | $ | 1,869 | | | $ | 2,936 | | | $ | 2,071 | | | $ | 8,809 | | | $ | 10,943 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Non-GAAP Financial Measurements
In addition to the results presented throughout this document in accordance with generally accepted accounting principles (GAAP), the Company has provided non-GAAP measurements, which present operating results on a basis excluding certain non-GAAP adjustments. Details of these adjustments are presented in the table above.
The Company has provided these non-GAAP financial measures to assist investors to better understand the Company’s core operating performance and to enhance comparisons of its core operating performance with historical periods and the operating performance of its competitors. Management uses the non-GAAP operating results in its evaluation of the core operating performance of the Company and in its evaluation of trends between fiscal periods. In addition, the Company prepares and maintains all budgets and forecasts of future periods on a basis consistent with these non-GAAP operating results. Investors should consider non-GAAP measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.
QLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited — in thousands, except per share amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended March 28, 2004
| | Three Months Ended March 30, 2003
|
| | | GAAP | | Non-GAAP | | Non-GAAP | | GAAP | | Non-GAAP | | Non-GAAP |
| | | Results
| | Adjustments
| | Results
| | Results
| | Adjustments
| | Results
|
| Gross revenues | | $ | 128,294 | | | $ | — | | | $ | 128,294 | | | $ | 120,565 | | | $ | — | | | $ | 120,565 | |
| Stock-based sales discounts | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net revenues | | | 128,294 | | | | — | | | | 128,294 | | | | 120,565 | | | | — | | | | 120,565 | |
| Cost of revenues | | | 39,045 | | | | — | | | | 39,045 | | | | 41,155 | | | | — | | | | 41,155 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Gross profit | | | 89,249 | | | | — | | | | 89,249 | | | | 79,410 | | | | — | | | | 79,410 | |
| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
| Engineering and development | | | 22,024 | | | | (1,869 | ) | | | 20,155 | | | | 21,901 | | | | (2,071 | ) | | | 19,830 | |
| Sales and marketing | | | 14,941 | | | | — | | | | 14,941 | | | | 11,304 | | | | — | | | | 11,304 | |
| General and administrative | | | 3,659 | | | | — | | | | 3,659 | | | | 3,636 | | | | — | | | | 3,636 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total operating expenses | | | 40,624 | | | | (1,869 | ) | | | 38,755 | | | | 36,841 | | | | (2,071 | ) | | | 34,770 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Operating income | | | 48,625 | | | | 1,869 | | | | 50,494 | | | | 42,569 | | | | 2,071 | | | | 44,640 | |
| Interest and other income | | | 4,381 | | | | — | | | | 4,381 | | | | 5,160 | | | | — | | | | 5,160 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Income before income taxes | | | 53,006 | | | | 1,869 | | | | 54,875 | | | | 47,729 | | | | 2,071 | | | | 49,800 | |
| Income taxes | | | 20,142 | | | | — | | | | 20,142 | | | | 17,840 | | | | — | | | | 17,840 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net income | | $ | 32,864 | | | $ | 1,869 | | | $ | 34,733 | | | $ | 29,889 | | | $ | 2,071 | | | $ | 31,960 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net income per share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.35 | | | $ | 0.02 | | | $ | 0.37 | | | $ | 0.32 | | | $ | 0.02 | | | $ | 0.34 | |
| Diluted | | $ | 0.34 | | | $ | 0.02 | | | $ | 0.36 | | | $ | 0.31 | | | $ | 0.02 | | | $ | 0.33 | |
| Number of shares used in per share computations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 94,367 | | | | — | | | | 94,367 | | | | 93,771 | | | | — | | | | 93,771 | |
| Diluted | | | 95,798 | | | | — | | | | 95,798 | | | | 95,444 | | | | — | | | | 95,444 | |
QLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited — in thousands, except per share amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended March 28, 2004
| | Three Months Ended December 28, 2003
|
| | | GAAP | | Non-GAAP | | Non-GAAP | | GAAP | | Non-GAAP | | Non-GAAP |
| | | Results
| | Adjustments
| | Results
| | Results
| | Adjustments
| | Results
|
| Gross revenues | | $ | 128,294 | | | $ | — | | | $ | 128,294 | | | $ | 137,064 | | | $ | — | | | $ | 137,064 | |
| Stock-based sales discounts | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net revenues | | | 128,294 | | | | — | | | | 128,294 | | | | 137,064 | | | | — | | | | 137,064 | |
| Cost of revenues | | | 39,045 | | | | — | | | | 39,045 | | | | 42,881 | | | | — | | | | 42,881 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Gross profit | | | 89,249 | | | | — | | | | 89,249 | | | | 94,183 | | | | — | | | | 94,183 | |
| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
| Engineering and development | | | 22,024 | | | | (1,869 | ) | | | 20,155 | | | | 21,514 | | | | (1,870 | ) | | | 19,644 | |
| Sales and marketing | | | 14,941 | | | | — | | | | 14,941 | | | | 13,846 | | | | — | | | | 13,846 | |
| General and administrative | | | 3,659 | | | | — | | | | 3,659 | | | | 5,944 | | | | (1,750 | ) | | | 4,194 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total operating expenses | | | 40,624 | | | | (1,869 | ) | | | 38,755 | | | | 41,304 | | | | (3,620 | ) | | | 37,684 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Operating income | | | 48,625 | | | | 1,869 | | | | 50,494 | | | | 52,879 | | | | 3,620 | | | | 56,499 | |
| Interest and other income | | | 4,381 | | | | — | | | | 4,381 | | | | 3,495 | | | | — | | | | 3,495 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Income before income taxes | | | 53,006 | | | | 1,869 | | | | 54,875 | | | | 56,374 | | | | 3,620 | | | | 59,994 | |
| Income taxes | | | 20,142 | | | | — | | | | 20,142 | | | | 21,422 | | | | 684 | | | | 22,106 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net income | | $ | 32,864 | | | $ | 1,869 | | | $ | 34,733 | | | $ | 34,952 | | | $ | 2,936 | | | $ | 37,888 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net income per share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.35 | | | $ | 0.02 | | | $ | 0.37 | | | $ | 0.37 | | | $ | 0.03 | | | $ | 0.40 | |
| Diluted | | $ | 0.34 | | | $ | 0.02 | | | $ | 0.36 | | | $ | 0.36 | | | $ | 0.03 | | | $ | 0.39 | |
| Number of shares used in per share computations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 94,367 | | | | — | | | | 94,367 | | | | 94,458 | | | | — | | | | 94,458 | |
| Diluted | | | 95,798 | | | | — | | | | 95,798 | | | | 96,823 | | | | — | | | | 96,823 | |
QLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited — in thousands, except per share amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended March 28, 2004
| | Year Ended March 30, 2003
|
| | | GAAP | | Non-GAAP | | Non-GAAP | | | | | | Non-GAAP | | Non-GAAP |
| | | Results
| | Adjustments
| | Results
| | GAAP Results
| | Adjustments
| | Results
|
| Gross revenues | | $ | 523,860 | | | $ | — | | | $ | 523,860 | | | $ | 444,037 | | | $ | — | | | $ | 444,037 | |
| Stock-based sales discounts | | | — | | | | — | | | | — | | | | 3,228 | | | | (3,228 | ) | | | — | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net revenues | | | 523,860 | | | | — | | | | 523,860 | | | | 440,809 | | | | 3,228 | | | | 444,037 | |
| Cost of revenues | | | 166,294 | | | | — | | | | 166,294 | | | | 159,370 | | | | — | | | | 159,370 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Gross profit | | | 357,566 | | | | — | | | | 357,566 | | | | 281,439 | | | | 3,228 | | | | 284,667 | |
| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
| Engineering and development | | | 87,755 | | | | (7,743 | ) | | | 80,012 | | | | 81,253 | | | | (6,773 | ) | | | 74,480 | |
| Sales and marketing | | | 52,952 | | | | — | | | | 52,952 | | | | 44,312 | | | | — | | | | 44,312 | |
| General and administrative | | | 18,102 | | | | (1,750 | ) | | | 16,352 | | | | 14,011 | | | | — | | | | 14,011 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total operating expenses | | | 158,809 | | | | (9,493 | ) | | | 149,316 | | | | 139,576 | | | | (6,773 | ) | | | 132,803 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Operating income | | | 198,757 | | | | 9,493 | | | | 208,250 | | | | 141,863 | | | | 10,001 | | | | 151,864 | |
| Interest and other income | | | 16,844 | | | | — | | | | 16,844 | | | | 17,356 | | | | 3,000 | | | | 20,356 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Income before income taxes | | | 215,601 | | | | 9,493 | | | | 225,094 | | | | 159,219 | | | | 13,001 | | | | 172,220 | |
| Income taxes | | | 81,928 | | | | 684 | | | | 82,612 | | | | 55,746 | | | | 2,058 | | | | 57,804 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net income | | $ | 133,673 | | | $ | 8,809 | | | $ | 142,482 | | | $ | 103,473 | | | $ | 10,943 | | | $ | 114,416 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net income per share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 1.42 | | | $ | 0.09 | | | $ | 1.51 | | | $ | 1.11 | | | $ | 0.11 | | | $ | 1.22 | |
| Diluted | | $ | 1.39 | | | $ | 0.09 | | | $ | 1.48 | | | $ | 1.09 | | | $ | 0.11 | | | $ | 1.20 | |
| Number of shares used in per share computations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | 94,281 | | | | — | | | | 94,281 | | | | 93,469 | | | | — | | | | 93,469 | |
| Diluted | | | 96,246 | | | | — | | | | 96,246 | | | | 95,354 | | | | — | | | | 95,354 | |
QLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited — in thousands)
| | | | | | | | | |
| | | Mar. 28, 2004
| | Mar. 30, 2003
|
ASSETS | | | | | | | | |
| Current assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 156,593 | | | $ | 137,810 | |
| Short-term investments | | | 586,441 | | | | 505,387 | |
| Accounts receivable, net | | | 67,355 | | | | 49,694 | |
| Inventories | | | 20,935 | | | | 19,365 | |
| Other current assets | | | 22,256 | | | | 35,924 | |
| | | |
| | | |
| |
| Total current assets | | | 853,580 | | | | 748,180 | |
| Property and equipment, net | | | 67,224 | | | | 59,813 | |
| Other assets | | | 7,711 | | | | 9,426 | |
| | | |
| | | |
| |
| | | $ | 928,515 | | | $ | 817,419 | |
| | | |
| | | |
| |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 18,570 | | | $ | 15,301 | |
| Accrued compensation | | | 18,849 | | | | 21,997 | |
| Income taxes payable | | | 10,691 | | | | 19,201 | |
| Other liabilities | | | 12,687 | | | | 10,185 | |
| | | |
| | | |
| |
| Total current liabilities | | | 60,797 | | | | 66,684 | |
| Total stockholders’ equity | | | 867,718 | | | | 750,735 | |
| | | |
| | | |
| |
| | | $ | 928,515 | | | $ | 817,419 | |
| | | |
| | | |
| |
QLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited — in thousands)
| | | | | | | | | |
| | | Years Ended
|
| | | Mar. 28, | | Mar. 30, |
| | | 2004
| | 2003
|
| Cash flows from operating activities: | | | | | | | | |
| Net income | | $ | 133,673 | | | $ | 103,473 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 14,829 | | | | 14,706 | |
| Deferred income taxes | | | 15,420 | | | | 5,937 | |
| Tax benefit from issuance of stock under stock plans | | | 10,640 | | | | 6,037 | |
| Amortization of deferred stock-based compensation | | | 1,196 | | | | 1,904 | |
| Provision for losses on accounts receivable | | | (450 | ) | | | (550 | ) |
| Loss on disposal of property and equipment | | | 43 | | | | 1,478 | |
| Write-down of non-marketable investments | | | — | | | | 4,000 | |
| Stock-based sales discounts | | | — | | | | 3,228 | |
| Changes in operating assets and liabilities: | | | | | | | | |
| Accounts receivable | | | (17,211 | ) | | | (10,784 | ) |
| Inventories | | | (1,570 | ) | | | 5,393 | |
| Other assets | | | (37 | ) | | | (1,229 | ) |
| Accounts payable | | | 3,269 | | | | 276 | |
| Accrued compensation | | | (3,148 | ) | | | 6,855 | |
| Income taxes payable | | | (8,510 | ) | | | 10,606 | |
| Other liabilities | | | 9,048 | | | | 3,974 | |
| | | |
| | | |
| |
| Net cash provided by operating activities | | | 157,192 | | | | 155,304 | |
| | | |
| | | |
| |
| Cash flows from investing activities: | | | | | | | | |
| Purchases of marketable securities | | | (974,494 | ) | | | (858,202 | ) |
| Sales and maturities of marketable securities | | | 893,122 | | | | 773,338 | |
| Additions to property and equipment | | | (22,283 | ) | | | (15,704 | ) |
| Acquisition of business | | | — | | | | (1,695 | ) |
| | | |
| | | |
| |
| Net cash used in investing activities | | | (103,655 | ) | | | (102,263 | ) |
| | | |
| | | |
| |
| Cash flows from financing activities: | | | | | | | | |
| Proceeds from issuance of stock under stock plans | | | 22,260 | | | | 11,623 | |
| Purchase of treasury stock | | | (57,014 | ) | | | (2,978 | ) |
| | | |
| | | |
| |
| Net cash provided by (used in) financing activities | | | (34,754 | ) | | | 8,645 | |
| | | |
| | | |
| |
| Net increase in cash and cash equivalents | | | 18,783 | | | | 61,686 | |
| Cash and cash equivalents at beginning of period | | | 137,810 | | | | 76,124 | |
| | | |
| | | |
| |
| Cash and cash equivalents at end of period | | $ | 156,593 | | | $ | 137,810 | |
| | | |
| | | |
| |
