QLogic (QLGC) 8-K Results of Operations and Financial Condition

FOR IMMEDIATE RELEASE Exhibit 99.1

Media Contact:
Steve Zivanic
QLogic Corporation
Phone: (408) 667-8039
steve.zivanic@qlogic.com

Investor Contact:
Simon Biddiscombe
QLogic Corporation
Phone: (949) 389-7533
simon.biddiscombe@qlogic.com

QLOGIC REPORTS FOURTH QUARTER
AND FISCAL YEAR 2009 RESULTS
Record Annual Revenues Achieved

ALISO VIEJO, Calif., April 30, 2009—QLogic Corp. (NASDAQ:QLGC), a leading supplier of high performance network infrastructure solutions, today announced its financial results for the fourth quarter and fiscal year ended March 29, 2009.

Fourth Quarter Highlights

• Net revenue: $130.5 million.

• Net income: $19.2 million GAAP, $24.5 million non-GAAP.

• Net income per diluted share: $0.16 GAAP, $0.20 non-GAAP.

• Cash generated from operations: $58.0 million.

• Cash and investment securities: $378.3 million as of March 29, 2009.

Fiscal Year Highlights

• Net revenue: a record $633.9 million.

• Net income: $108.8 million GAAP, $154.2 million non-GAAP.

• Net income per diluted share: $0.85 GAAP, $1.20 non-GAAP.

• Cash generated from operations: $221.3 million.

• Stock buyback: $205.5 million.

Financial Results

Net revenue for the fourth quarter of fiscal 2009 was $130.5 million compared to $159.7 million in the same quarter last year. Revenue from Host Products, which are comprised primarily of Fibre Channel and iSCSI host bus adapters and InfiniBand host channel adapters, was $88.4 million during the fourth quarter of fiscal 2009 compared to $110.3 million in the same quarter last year. Revenue from Network Products, which are comprised primarily of Fibre Channel and InfiniBand switches, was $25.1 million during the fourth quarter of fiscal 2009 compared to $27.5 million in the same quarter last year. Revenue

from Silicon Products, which are comprised primarily of protocol chips, was $13.7 million during the fourth quarter of fiscal 2009 compared to $13.9 million in the same quarter last year.

Net income on a GAAP basis for the fourth quarter of fiscal 2009 was $19.2 million, or $0.16 per diluted share, compared to $22.8 million or $0.17 per diluted share for the fourth quarter of fiscal 2008. Net income on a non-GAAP basis for the fourth quarter of fiscal 2009 was $24.5 million, or $0.20 per diluted share, compared to $37.7 million or $0.28 per diluted share for the fourth quarter of fiscal 2008.

Net revenue for fiscal 2009 was a record $633.9 million and increased 6% from $597.9 million in fiscal 2008. Net income on a GAAP basis for fiscal 2009 was $108.8 million, or $0.85 per diluted share, and increased from $96.2 million or $0.67 per diluted share for fiscal 2008. Non-GAAP net income for fiscal 2009 was $154.2 million, or $1.20 per diluted share, and increased from $141.3 million or $0.99 per diluted share for fiscal 2008.

“Despite a very tough macroeconomic environment in the second half of the year, QLogic was able to deliver record revenues for fiscal year 2009,” said H.K. Desai, chief executive officer, QLogic. “As we enter a challenging fiscal 2010, we believe that we have set the appropriate goals and strategies to drive long-term growth in revenues and profitability.”

QLogic uses certain non-GAAP financial measures to supplement financial statements based on GAAP. A summary of these non-GAAP financial measures and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as a description of the reasons that management believes that these non-GAAP financial measures provide useful information to investors and the additional purposes for which management uses these non-GAAP financial measures is presented in the accompanying financial schedules.

QLogic’s fiscal 2009 fourth quarter conference call is scheduled for today at 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time). H.K. Desai, chief executive officer, and Simon Biddiscombe, senior vice president and chief financial officer, will host the conference call. The call is being webcast live via the Internet at http://ir.qlogic.com and www.earnings.com. Phone access to participate in the conference call is available at (719) 325-4797, pass code: 5416549.

The financial information that the company intends to discuss during the conference call will be available on the company’s website at http://ir.qlogic.com for twelve months following the conference call. A replay of the conference call will be available via webcast at http://ir.qlogic.com for twelve months.

About QLogic

QLogic (NASDAQ: QLGC) is a global leader and technology innovator in high performance networking, including adapters, switches and ASICs. Leading OEMs and channel partners worldwide rely on QLogic products for their data, storage and server networking solutions. QLogic is a NASDAQ Global Select company and is included in the S&P 500. For more information, visit www.qlogic.com.

Disclaimer — Forward Looking Statements

This press release contains statements relating to future results of the company (including certain beliefs and projections regarding business trends, growth in revenue and profitability) that are “forward-looking statements” as defined in 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 advises readers that these potential risks and uncertainties include, but are not limited to: potential fluctuations in operating results; revenues may be affected by changes in IT spending levels; gross margins that may vary over time; the stock price of the company may be volatile; the company’s dependence on the storage area network market; potential adverse effects of server virtualization technology on the company’s business; potential adverse effects of increased market acceptance of blade servers; the ability to maintain and gain market or industry acceptance of the company’s products; the company’s dependence on a limited number of customers; seasonal fluctuations and uneven sales patterns in orders from customers; the company’s ability to compete effectively with other companies; declining average unit sales prices of comparable products; a reduction in sales efforts by current distributors; the company’s dependence on sole source and limited source suppliers; the company’s dependence on relationships with certain silicon chip suppliers; declines in the market value of the company’s marketable securities; the complexity of the company’s products; sales fluctuations arising from customer transitions to new products; environmental compliance costs; international economic, regulatory, political and other risks; uncertain benefits from strategic business combinations; the ability to attract and retain key personnel; difficulties in transitioning to smaller geometry process technologies; the ability to protect proprietary rights; the ability to satisfactorily resolve any infringement claims; reliance on third party technology; the use of “open source” software in the company’s products; changes in the company’s tax provisions or adverse outcomes resulting from examination of its income tax returns; computer viruses and other tampering with the company’s computer systems; and facilities of the company and its suppliers and customers are located in areas subject to natural disasters.

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 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					Year Ended
	March 29,		March 30,			March 29,		March 30,
	2009		2008			2009		2008
Net revenues	$	130,547	$	159,723		$	633,862	$	597,866
Cost of revenues		44,533		53,846			210,075		205,959
Gross profit		86,014		105,877			423,787		391,907
Operating expenses:
Engineering and development		32,687		33,752			133,252		134,668
Sales and marketing		19,064		22,062			86,959		84,166
General and administrative		7,747		8,799			32,639		34,049
Special charges		2,656		1,556			4,063		5,328
Total operating expenses		62,154		66,169			256,913		258,211
Operating income		23,860		39,708			166,874		133,696
Interest and other income (expense), net		99		(2,861	)		2,134		14,024
Income before income taxes		23,959		36,847			169,008		147,720
Income taxes		4,762		14,082			60,219		51,510
Net income	$	19,197	$	22,765		$	108,789	$	96,210
Net income per share:
Basic	$	0.16	$	0.17		$	0.85	$	0.68
Diluted	$	0.16	$	0.17		$	0.85	$	0.67
Number of shares used in per share calculations:
Basic		120,957		133,873			127,776		142,167
Diluted		121,486		134,762			128,570		142,901

QLOGIC CORPORATION

RECONCILIATION OF GAAP NET INCOME TO
NON-GAAP NET INCOME

(unaudited — in thousands, except per share amounts)

	Three Months Ended						Year Ended
	March 29,			March 30,			March 29,			March 30,
	2009			2008			2009			2008
GAAP net income	$	19,197		$	22,765		$	108,789		$	96,210
Items excluded from GAAP net income:
Stock-based compensation		6,502			7,515			28,646			31,764
Amortization of purchased intangible assets		2,713			3,618			15,032			16,725
Impairment of intangible assets		—			2,338			—			2,338
Acquisition-related stock-based compensation		(614	)		641			173			1,209
Special charges		2,656			1,556			4,063			5,328
Impairment of investment securities		4,405			6,867			16,407			6,867
Net losses (gains) on trading securities		149			—			(3,456	)		—
Gain on sale of shares of a publicly-traded company		(2,075	)		—			(2,075	)		—
Income taxes		(8,421	)		(7,589	)		(13,391	)		(19,093	)
Total non-GAAP adjustments		5,315			14,946			45,399			45,138
Non-GAAP net income	$	24,512		$	37,711		$	154,188		$	141,348
Net income per diluted share:
GAAP net income	$	0.16		$	0.17		$	0.85		$	0.67
Adjustments		0.04			0.11			0.35			0.32
Non-GAAP net income	$	0.20		$	0.28		$	1.20		$	0.99

Non-GAAP Financial Measures

The non-GAAP financial measures contained herein are a supplement to the corresponding financial measures prepared in accordance with generally accepted accounting principles (GAAP). The non-GAAP financial measures presented exclude the items summarized in the above table. Management believes that adjustments for these items assist investors in making comparisons of period to period operating results and that these items are not indicative of the company’s on-going core operating performance.

The company has presented non-GAAP net income and non-GAAP net income per diluted share, on a basis consistent with its historical presentation, to assist investors in understanding the company’s core net income and core net income per diluted share on an on-going basis. These non-GAAP financial measures may also assist investors in making comparisons of the company’s core net profitability with historical periods and comparisons of the company’s core net profitability with the corresponding results for competitors. Management believes that non-GAAP net income and non-GAAP net income per diluted share are important measures in the evaluation of the company’s profitability. These non-GAAP financial measures exclude the adjustments described in the above table, and thus provide an overall measure of the company’s on-going net profitability and related profitability on a diluted per share basis.

Management uses non-GAAP net income and non-GAAP net income per diluted share in its evaluation of the company’s core after-tax results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process. In addition, the company prepares and maintains its budgets and forecasts for future periods on a basis consistent with these non-GAAP financial measures. Management believes that providing these non-GAAP financial measures allows investors to view the company’s financial results in the way that management views the financial results.

The non-GAAP financial measures presented herein have certain limitations in that they do not reflect all of the costs associated with the operations of the company’s business as determined in accordance with GAAP. Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by the company may be different from the non-GAAP financial measures used by other companies.

For additional information on the items excluded from the non-GAAP financial measures and why the company believes that these non-GAAP financial measures provide useful supplemental information to investors, the company refers you to the Form 8-K regarding this release filed today with the Securities and Exchange Commission.

A summary of the non-GAAP adjustments presented in the table above by the financial statement line impacted is as follows:

	Three Months Ended						Year Ended
	March 29,			March 30,			March 29,			March 30,
(unaudited — in thousands)	2009			2008			2009			2008
Non-GAAP Adjustments:
Cost of revenues:
Stock-based compensation	$	481		$	499		$	2,058		$	2,128
Amortization of purchased intangible assets		1,873			2,779			11,673			12,867
Impairment of intangible assets		—			2,338			—			2,338
Acquisition-related stock-based compensation		—			—			—			(24	)
Total cost of revenue adjustments		2,354			5,616			13,731			17,309
Operating expenses:
Engineering and development:
Stock-based compensation		3,391			3,400			14,991			14,531
Amortization of purchased intangible assets		31			31			125			314
Acquisition-related stock-based compensation		(619	)		644			151			1,198
Sales and marketing:
Stock-based compensation		1,242			1,502			5,545			6,255
Amortization of purchased intangible assets		809			808			3,234			3,544
Acquisition-related stock-based compensation		5			(3	)		22			35
General and administrative:
Stock-based compensation		1,388			2,114			6,052			8,850
Special charges		2,656			1,556			4,063			5,328
Total operating expense adjustments		8,903			10,052			34,183			40,055
Interest and other income:
Impairment of investment securities		4,405			6,867			16,407			6,867
Net losses (gains) on trading securities		149			—			(3,456	)		—
Gain on sale of shares of a publicly-traded company		(2,075	)		—			(2,075	)		—
Total interest and other income adjustments		2,479			6,867			10,876			6,867
Total non-GAAP adjustments before income taxes		13,736			22,535			58,790			64,231
Income taxes		(8,421	)		(7,589	)		(13,391	)		(19,093	)
Total non-GAAP adjustments	$	5,315		$	14,946		$	45,399		$	45,138

QLOGIC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited — in thousands)

	March 29, 2009			March 30, 2008
ASSETS
Current assets:
Cash and cash equivalents	$	203,722		$	160,009
Short-term investment securities		139,561			160,497
Accounts receivable, net		68,519			81,642
Inventories		40,293			27,520
Deferred tax assets		19,002			32,227
Other current assets		10,854			8,925
Total current assets		481,951			470,820
Long-term investment securities		34,986			55,903
Property and equipment, net		92,547			93,726
Goodwill		118,859			127,409
Purchased intangible assets, net		19,117			34,652
Deferred tax assets		28,785			25,870
Other assets		4,045			2,586
	$	780,290		$	810,966
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	36,874		$	35,643
Accrued compensation		28,702			31,120
Accrued taxes		13,499			5,262
Deferred revenue		7,470			8,693
Other current liabilities		6,728			5,952
Total current liabilities		93,273			86,670
Accrued taxes		47,116			48,163
Deferred revenue		8,559			5,087
Other liabilities		4,797			5,130
Total liabilities		153,745			145,050
Stockholders’ equity:
Common stock		202			200
Additional paid-in capital		712,064			657,893
Retained earnings		1,193,727			1,084,938
Accumulated other comprehensive income (loss)		634			(2,530	)
Treasury stock		(1,280,082	)		(1,074,585	)
Total stockholders’ equity		626,545			665,916
	$	780,290		$	810,966

QLOGIC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited — in thousands)

	Year Ended
	March 29,			March 30,
	2009			2008
Cash flows from operating activities:
Net income	$	108,789		$	96,210
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		32,525			30,857
Stock-based compensation		28,646			31,764
Acquisition-related:
Amortization of purchased intangible assets		15,032			16,725
Stock-based compensation		173			1,209
Deferred income taxes		16,660			(14,549	)
Impairment of investment securities		16,407			6,867
Net gains on trading securities		(3,456	)		—
Gain on sale of shares of a publicly-traded company		(2,075	)		—
Provision for losses on accounts receivable		278			399
Loss on disposal of property and equipment		402			1,328
Impairment of intangible assets		—			2,338
Changes in operating assets and liabilities:
Accounts receivable		12,845			(8,503	)
Inventories		(12,773	)		11,415
Other assets		(2,126	)		3,593
Accounts payable		707			7,282
Accrued compensation		(884	)		(1,940	)
Accrued taxes		7,190			20,635
Deferred revenue		2,249			6,412
Other liabilities		688			(453	)
Net cash provided by operating activities		221,277			211,589
Cash flows from investing activities:
Purchases of available-for-sale securities		(122,437	)		(185,707	)
Proceeds from sales and maturities of available-for-sale securities		161,320			425,033
Proceeds from disposition of trading securities		4,550			—
Reclassification of cash equivalents to investment securities		(57,209	)		—
Distributions from other investment securities		48,855			—
Purchases of property and equipment		(30,721	)		(30,001	)
Acquisition of business		—			67
Net cash provided by investing activities		4,358			209,392
Cash flows from financing activities:
Proceeds from issuance of stock under stock plans		23,541			14,696
Tax benefit from issuance of stock under stock plans		279			288
Purchases of treasury stock		(205,742	)		(352,760	)
Net cash used in financing activities		(181,922	)		(337,776	)
Net increase in cash and cash equivalents		43,713			83,205
Cash and cash equivalents at beginning of year		160,009			76,804
Cash and cash equivalents at end of year	$	203,722		$	160,009

QLOGIC CORPORATION

SUPPLEMENTAL FINANCIAL INFORMATION

(unaudited — in thousands)

Net Revenues

A summary of the company’s revenue components is as follows:

	Three Months Ended				Year Ended
	March 29,		March 30,		March 29,		March 30,
	2009		2008		2009		2008
Host Products	$	88,364	$	110,323	$	440,862	$	437,882
Network Products		25,074		27,519		117,551		101,758
Silicon Products		13,719		13,940		61,426		44,323
Royalty and Service		3,390		7,941		14,023		13,903
	$	130,547	$	159,723	$	633,862	$	597,866

Geographic Revenues

Revenues by geographic area are presented based upon the country of destination. Net revenues by geographic area are as follows:

	Three Months Ended				Year Ended
	March 29,		March 30,		March 29,		March 30,
	2009		2008		2009		2008
United States	$	63,644	$	80,211	$	303,729	$	305,146
Europe, Middle East and Africa		31,056		39,206		154,463		144,631
Asia-Pacific and Japan		28,440		32,063		139,850		113,063
Rest of world		7,407		8,243		35,820		35,026
	$	130,547	$	159,723	$	633,862	$	597,866