QLogic Q2: an Opportunity to Restore Optimism

QLogic plans to announce financial results for the second quarter of fiscal year 2013 later this month on the 25th, according to a statement.

Last quarter QLogic failed to meet analysts’ expectations with net income of $18.4 million, or 19 cents per share, on sales of $131.3.  Revenue in the first quarter of fiscal year 2012 was $144.5 million.  Chief executive Jean Hu said during the call that the company’s decline is ‘consistent’ with customer trends.

The networking equipment vendor beat its internal forecast in the fourth quarter of 2012, but analysts weren’t too ecstatic about the results. In 4Q2012 QLogic’s revenue dropped by 15 percent across the board, while expenses grew.

But the market hasn’t lost in faith in QLogic just yet.  Zacks believes that the company will be able to mitigate the fall thanks to a mix of strong channel relations and very solid positions in its key markets. The upcoming Q2 call is an opportunity for the firm to show investors that it’s making this happen.

SDN and big data are two trends that are changing the landscape of the networking industry today. Enterprises are expecting more agility from their data center plumbing to properly accommodate innovation that’s going on in other departments, and vendors are starting to adapt Not to be outdone, QLogic is working on something called Mt. Rainer – a host bus adapter that connects SSDs that reside inside servers to a SAN.

QLogic senior director Ryan Klein and Cameron Brett, the company’s head of marketing discussed Mt. Rainer at this week’s Oracle OpenWorld conference. Brett’s take is that this new technology helps flash “find its place in the storage network,” which is a pretty big deal in high-performance Oracle database environments.

QLogic CTO Rob Davis also dropped by theCube at the event. He too addressed Mt. Rainer, and revealed his company’s plans to develop a solution that will integrate on-premise storage with off-site cloud capacity.