APPLICATIONS

QLogic, a leading supplier of high performance network infrastructure solutions, has announced its second quarter financial results for the period ended September 28, 2008. Second Quarter Highlights • Net revenue increased 22% from the comparable quarter last year to a record $171.2 million. • Net income: $27.2 million GAAP, $45.2 million non-GAAP. • Net income per diluted share: $0.20 GAAP, $0.34 non-GAAP. • Cash generated from operations was $55.2 million. • $421.0 million in cash and marketable securities as of September 28, 2008. Financial Results Net revenue for the second quarter of fiscal 2009 was $171.2 million and increased 22% from $140.3 million in the comparable quarter last year. Revenue from Host Products, which are comprised primarily of Fibre Channel and iSCSI host bus adapters and InfiniBand host channel adapters, was $119.7 million during the second quarter of fiscal 2009 and increased 15% from $104.4 million in the comparable quarter last year. Revenue from Network Products, which are comprised primarily of Fibre Channel and InfiniBand switches, was $29.8 million during the second quarter of fiscal 2009 and increased 36% from $22.0 million in the comparable quarter last year. Revenue from Silicon Products, which are comprised primarily of protocol chips, was $15.7 million during the second quarter of fiscal 2009 and increased 36% from $11.5 million in the comparable quarter last year. Net income on a GAAP basis for the second quarter of fiscal 2009 was $27.2 million, or $0.20 per diluted share, and increased from $22.6 million, or $0.16 per diluted share for the second quarter of fiscal 2008. Net income on a GAAP basis for the second quarter of fiscal 2009 includes stock-based compensation expense, acquisition-related charges, impairment charges related to marketable securities, and the related income tax effects and valuation allowance on deferred tax assets. Net income on a non-GAAP basis for the second quarter of fiscal 2009 was $45.2 million, or $0.34 per diluted share, and increased from $32.5 million, or $0.22 per diluted share for the second quarter of fiscal 2008. “We are very pleased with our strong financial performance and record revenue during the second quarter despite significant challenges as a result of the current macro-economic environment,” said H.K. Desai, QLogic’s chief executive officer. “Second quarter highlights include the continued ramp of our 8Gb Fibre Channel HBAs and initial revenue from our FCoE converged network adapters.” 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 2009 second quarter conference call is scheduled for today at 2:30 p.m. Pacific Time (5:30 p.m. Eastern Time). H.K. Desai, chief executive officer, and Simon Biddiscombe, senior vice president and chief financial officer, will host the conference call. The call is being webcast live via the Internet at http://ir.qlogic.com and www.earnings.com. Phone access to participate in the conference call is available at (913) 312-1484, pass code: 5914802. The financial information that the company intends to discuss during the conference call will be available on the company’s its Web site for twelve months following the conference call. A replay of the conference call will be available via webcast at its Web site for twelve months.