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 OPERATIONS | ||||||||||||||||
|
(unaudited — in thousands, except per share amounts) |
||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| March 30, | March 31, | March 30, | March 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net revenues | $ | 115,720 | $ | 116,914 | $ | 460,907 | $ | 484,538 | ||||||||
| Cost of revenues | 39,422 | 37,798 | 150,800 | 159,180 | ||||||||||||
| Gross profit | 76,298 | 79,116 | 310,107 | 325,358 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Engineering and development | 36,598 | 40,206 | 147,010 | 156,097 | ||||||||||||
| Sales and marketing | 16,410 | 20,562 | 68,367 | 78,512 | ||||||||||||
| General and administrative | 9,399 | 7,948 | 32,097 | 32,899 | ||||||||||||
| Special charges | 56,524 | — | 74,853 | — | ||||||||||||
| Total operating expenses | 118,931 | 68,716 | 322,327 | 267,508 | ||||||||||||
| Operating income (loss) | (42,633 | ) | 10,400 | (12,220 | ) | 57,850 | ||||||||||
| Interest and other income, net | 1,492 | 1,072 | 3,260 | 4,007 | ||||||||||||
|
Income (loss) from continuing operations before income taxes |
(41,141 |
) |
11,472 |
(8,960 |
) |
61,857 |
||||||||||
| Income tax expense (benefit) | 5,638 | (18,163 | ) | 9,306 | (11,704 | ) | ||||||||||
| Income (loss) from continuing operations | (46,779 | ) | 29,635 | (18,266 | ) | 73,561 | ||||||||||
| Loss from discontinued operations, net of income taxes | — | — | — | (425 | ) | |||||||||||
| Net income (loss) | $ | (46,779 | ) | $ | 29,635 | $ | (18,266 | ) | $ | 73,136 | ||||||
| Income (loss) from continuing operations per share: | ||||||||||||||||
| Basic | $ | (0.54 | ) | $ | 0.33 | $ | (0.21 | ) | $ | 0.79 | ||||||
| Diluted | $ | (0.54 | ) | $ | 0.33 | $ | (0.21 | ) | $ | 0.78 | ||||||
| Loss from discontinued operations per share: | ||||||||||||||||
| Basic | $ | — | $ | — | $ | — | $ | (0.01 | ) | |||||||
| Diluted | $ | — | $ | — | $ | — | $ | — | ||||||||
| Net income (loss) per share: | ||||||||||||||||
| Basic | $ | (0.54 | ) | $ | 0.33 | $ | (0.21 | ) | $ | 0.78 | ||||||
| Diluted | $ | (0.54 | ) | $ | 0.33 | $ | (0.21 | ) | $ | 0.78 | ||||||
| Number of shares used in per share calculations: | ||||||||||||||||
| Basic | 87,017 | 90,684 | 87,612 | 93,560 | ||||||||||||
| Diluted | 87,017 | 91,105 | 87,612 | 93,998 | ||||||||||||
| QLOGIC CORPORATION | ||||||||||||||||
| RECONCILIATION OF GAAP INCOME (LOSS) FROM CONTINUING OPERATIONS TO | ||||||||||||||||
| NON-GAAP INCOME FROM CONTINUING OPERATIONS | ||||||||||||||||
|
(unaudited — in thousands, except per share amounts) |
||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| March 30, | March 31, | March 30, | March 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| GAAP income (loss) from continuing operations | $ | (46,779 | ) | $ | 29,635 | $ | (18,266 | ) | $ | 73,561 | ||||||
| Items excluded from GAAP income (loss) from continuing operations: | ||||||||||||||||
| Stock-based compensation | 4,591 | 7,068 | 22,638 | 30,363 | ||||||||||||
| Amortization of acquisition-related intangible assets | 1,408 | 243 | 2,138 | 973 | ||||||||||||
| Amortization of license fee | 133 | — | 133 | — | ||||||||||||
| Acquisition-related charges | 1,517 | — | 1,517 | — | ||||||||||||
| Special charges | 56,524 | — | 74,853 | — | ||||||||||||
| Gains recognized on previously impaired investment securities |
(425 |
) |
— |
(425 |
) |
— |
||||||||||
| Special income tax benefits (1) | — | (19,338 | ) | — | (19,338 | ) | ||||||||||
| Other income tax effects | 3,783 | (1,978 | ) | 219 | (9,422 | ) | ||||||||||
| Total non-GAAP adjustments | 67,531 | (14,005 | ) | 101,073 | 2,576 | |||||||||||
| Non-GAAP income from continuing operations | $ | 20,752 | $ | 15,630 | $ | 82,807 | $ | 76,137 | ||||||||
| Income (loss) from continuing operations per diluted share: | ||||||||||||||||
| GAAP income (loss) from continuing operations | $ | (0.54 | ) | $ | 0.33 | $ | (0.21 | ) | $ | 0.78 | ||||||
| Adjustments | 0.78 | (0.16 | ) | 1.15 | 0.03 | |||||||||||
| Non-GAAP income from continuing operations | $ | 0.24 | $ | 0.17 | $ | 0.94 | $ | 0.81 | ||||||||
| Number of shares used in non-GAAP per diluted share calculations |
87,819 |
91,105 |
88,111 |
93,998 |
||||||||||||
| (1) | Comprised of benefits associated with adjustments to certain tax positions previously subject to an IRS examination and the retroactive reinstatement of the federal research tax credit. |
