ACADEMIA

QLogic announced its second quarter financial results for the period ended October 2, 2011.

Second Quarter Highlights

-- Net revenue: $150.2 million

-- GAAP net income: $28.7 million or $0.28 per diluted share

-- Non-GAAP net income: $35.1 million or $0.34 per diluted share

-- Operating margin: 21.3% GAAP, 27.4% non-GAAP

-- Cash generated from operations: $41.5 million

Financial Results

Net revenue for the second quarter of fiscal 2012 was $150.2 million and increased 2.5% from $146.5 million in the same quarter last year. Revenue from Host Products increased to $105.6 million during the second quarter of fiscal 2012 from $104.2 million in the same quarter last year. Revenue from Network Products was $27.8 million during the second quarter of fiscal 2012 and increased from $27.2 million in the same quarter last year. Revenue from Silicon Products increased to $13.9 million during the second quarter of fiscal 2012 from $12.4 million in the same quarter last year.

Net income on a GAAP basis for the second quarter of fiscal 2012 was $28.7 million, or $0.28 per diluted share, compared to $30.0 million, or $0.28 per diluted share, for the second quarter of fiscal 2011. Net income on a non-GAAP basis for the second quarter of fiscal 2012 was $35.1 million, or $0.34 per diluted share, compared to $36.6 million, or $0.34 per diluted share, for the second quarter of fiscal 2011.

"Despite macroeconomic challenges, we are pleased with our financial execution and discipline during the second quarter of fiscal 2012. We delivered revenue and earnings per share that approximated the mid-point of our guidance," said Simon Biddiscombe, president and chief executive officer, QLogic. "During the quarter, we extended our Adaptive Convergence strategy with the public introduction of a new portfolio of innovative high performance networking products with the flexibility to power 16Gb Fibre Channel and 10Gb Ethernet converged networks from the same hardware. We are continuing to introduce highly innovative new products that we believe will position us to capitalize on the significant opportunities in cloud computing, convergence and virtualized environments."

QLogic uses certain non-GAAP financial measures to supplement financial statements based on GAAP. A summary of these non-GAAP financial measures and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as a description of the reasons that management believes that these non-GAAP financial measures provide useful information to investors and the additional purposes for which management uses these non-GAAP financial measures, is presented in the accompanying financial schedules.

QLogic's fiscal 2012 second quarter conference call is scheduled for today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Simon Biddiscombe, president and chief executive officer, and Jean Hu, senior vice president and chief financial officer, will host the conference call.