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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Editor's Contact:
Thomas R. Anderson Michael R. Manning
Vice President, CFO Secretary & Treasurer
QLogic Corporation QLogic Corporation
Phone: 714/668-5092 Phone: 714/668-5344
Fax: 714/668-5090 Fax: 714/668-5384
QLOGIC CORPORATION REPORTS
FIRST QUARTER EARNINGS PER SHARE
Costa Mesa, Calif., July 17, 1997 -- QLogic Corporation (Nasdaq:QLGC),
a leader in the I/O industry, announced today that revenues for its first
fiscal quarter ended June 29, 1997 rose to $18.2 million, up 15.5% compared to
the $15.7 million reported for the same quarter a year ago. First quarter net
income grew 132% to $2.2 million, or $0.35 per share, compared to the $967,000
or $0.16 per share, reported a year ago.
"Growth in demand for QLogic's host computer I/O products continued to
drive revenue expansion during the first quarter, with SCSI solutions
continuing to dominate our business," noted H.K. Desai, the Company's president
and chief executive officer. "In addition, customer interest in QLogic's new
fibre channel products has led to a number of evaluation installations of our
ISP2100 controller around the world."
During the first quarter, the Company recorded further improvements in
gross margin and operating margin, largely resulting from favorable product mix
and manufacturing efficiencies. The increased profitability of the Company,
coupled with improved cash management, allowed the Company's cash position to
grow by $4.0 million during the first quarter to $23.1 million.
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QLogic Corporation is a leading designer and supplier of semiconductor
and board-level I/O (input/output) products. The Company's products provide a
high performance connection between computer systems and their attached data
storage peripherals, such as hard disk and tape drives, CD-ROM drives and RAID
subsystems, QLogic provides I/O technology solutions by designing and marketing
single chip controller and adapter board products for both sides of the
computer/peripheral device interlink, or "bus." Historically, the Company has
targeted the high performance sector of the I/O market, focusing primarily on
the small computer system interface (SCSI) standard. The Company is utilizing
its I/O expertise to develop products for emerging I/O standards such as fibre
channel. Fibre channel is experiencing early industry acceptance as a higher
performance solution that maintains signal integrity while allowing for
increased connectivity between a computer system and its data storage
peripherals.
With the exception of historical information, the statements set forth
above include forward-looking statements that involve risks and uncertainties.
The Company wishes to caution readers that a number of important factors could
cause actual results to differ materially from those in the forward-looking
statements. Those factors include the Company's ability to develop and produce
new technologies; new and changing technologies; a change in semiconductor
foundry conditions; fluctuations in the growth of I/O markets; fluctuations or
cancellations in orders from OEM customers; the Company's ability to compete
effectively with other companies; and cancellation of OEM products associated
with design wins. These and other factors which could cause actual results to
differ materially from those in the forward-looking statements are also
discussed in the Company's filings with the Securities and Exchange Commission,
including its recent filings on Form S-3, 10-K and 10-Q.
More information on QLogic is available from the Company's SEC filings.
Contact QLogic Corporation, 3545 Harbor Blvd., Costa Mesa, CA 92626. Sales
800/662-4471. Corporate 714/438-2200. World Wide Web http://www.qlc.com.
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QLOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
ASSETS
June 29, 1997 March 30, 1997
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Current Assets:
Cash and cash equivalents ......................................... $23,195 $19,091
Accounts and notes receivable, net ................................ 4,402 5,720
Inventories ....................................................... 5,860 4,794
Deferred income taxes ............................................. 1,834 1,149
Prepaid expenses and other current assets ......................... 467 391
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Total current assets ............................................ 35,698 31,145
Property and equipment, net ....................................... 4,811 5,043
Other assets ...................................................... 1,289 775
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$41,798 $36,963
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LIABILITY AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses ............................. $13,596 $11,109
Current installments of capitalized lease obligations ............. 218 225
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Total current liabilities ....................................... 13,814 11,334
Capitalized lease obligations, excluding current installments ..... 301 352
Other Non-current liabilities ..................................... 924 225
Total stockholders' equity ...................................... 26,759 24,353
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$41,798 $36,963
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QLOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except share and per share data)
June 29 June 30,
1997 1996
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Net revenues $18,172 $15,740
Cost of sales 7,840 9,585
Gross profit _______ _______
Operating expenses:
Engineering and development 3,528 2,089
Selling and marketing 2,082 1,357
General and administrative 1,355 1,117
_______ ________
Total operating expense 6,965 4,563
_______ ________
Operating income 3,367 1,592
Interest income 292 59
Income before income taxes 3,649 1,651
Income tax provision 1,405 684
_______ ________
Net income $ 2,244 $ 967
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Net income per common and equivalent shares 6,353,000 5,894,000
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