QLogic Corp (QLGC) Prelim. Q2 Revenue, EPS Miss Expectations

QLogic Corp (NASDAQ: QLGC) announced preliminary results for its first quarter ended June 28, 2015.

QLogic expects to report net revenue of approximately $113 million for the first quarter of fiscal 2016, compared to the previously-forecasted range of $124 million to $132 million. The preliminary results reflect lower than expected demand due to general weakness in the Company’s traditional enterprise server and storage markets, and a build-up of inventory at certain of its OEM customers due to a slower next-generation server transition in enterprise environments.

“We are disappointed with the level of business activity during the quarter,” said Prasad Rampalli, president and chief executive officer, QLogic. “We will work through these headwinds, leveraging our technologies and solutions to expand our addressable market opportunities. We believe QLogic is well positioned to capitalize on these opportunities in the data center. We will provide more details on our first quarter results during our earnings call on July 30th.”

The Company anticipates reporting GAAP net income per diluted share for the first quarter of fiscal 2016 in the range of $0.00 to $0.01. On a non-GAAP basis, the Company expects to report net income per diluted share in the range of $0.16 to $0.17, compared to the previously-forecasted range of $0.23 to $0.27 per diluted share. The non-GAAP net income per diluted share amount excludes stock-based compensation, amortization of acquisition-related intangible assets, other charges, and income tax adjustments.

*** The Street sees Q1 EPS of $0.25 and revenue of $128.3 million.

The preliminary results of operations for the first quarter of fiscal 2016 represent the most current information available to management. The Company's actual results may differ from these preliminary results due to the completion of the Company's financial closing procedures, final adjustments and other developments that may arise between the date of this press release and the time that financial results for the first quarter of fiscal 2016 are finalized.

The Company will announce its first quarter financial results for fiscal year 2016 after the close of the market on Thursday, July 30, 2015. Following the July 30, 2015 press release, QLogic will conduct a conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Prasad Rampalli, president and chief executive officer, and Jean Hu, senior vice president and chief financial officer, will host the conference call, which will be webcast live at http://ir.qlogic.com. Phone access to participate in the conference call will be available at (877) 876-9177, pass code: 7530923. A replay of the webcast will be available at http://ir.qlogic.com for twelve months.

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