Can QLogic Ever Get It Together?
QLogic has announced preliminary results for its most recent quarter, and the company is suffering. Perhaps QLogic just wanted to get this out of the way.
Thursday morning, QLogic Corp. (NASDAQ: QLGC) announced preliminary results for its most recent quarter. Even though these are just preliminary results, the company is suffering. Perhaps QLogic just wanted to get this out of the way.
For some background: QLogic is a global leader and technology innovator in high-performance server and storage networking connectivity products. Leading original equipment manufacturers (OEMs) and channel partners worldwide rely on this company for their server and storage networking solutions.
The company expects to report net revenue of approximately $113 million for the first quarter of fiscal 2016, compared to the previously forecast range of $124 million to $132 million. QLogic expects to report net income per diluted share in the range of $0.16 to $0.17, compared to the previously forecast range of $0.23 to $0.27 per diluted share. There are consensus estimates of $0.25 in earnings per share on $128.29 million in revenue.
The explanation behind these poor preliminary results was lower-than-expected demand from general weakness in the traditional enterprise server and storage markets. Not to mention a build-up of inventory at certain OEM customers was the result of a slower next-generation server transition in enterprise environments.
Prasad Rampalli, president and CEO of QLogic, said:
We are disappointed with the level of business activity during the quarter. 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.
It will all come down to what QLogic reports when it reveals earnings. The company will announce its first-quarter 2016 financial results after markets close on Thursday, July 30, 2015.
Shares of QLogic were down nearly 22% at $10.97 late on Thursday. The stock has a consensus analyst price target of $16.92 and a 52-week trading range of $8.70 to $15.93.
ALSO READ: 10 States With the Most Hate Groups
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
