SCIENCE

QLogic announced its first quarter financial results for the period ended July 3, 2011.

First Quarter Highlights

-- Net revenue: $151.6 million

-- GAAP net income: $32.4 million or $0.31 per diluted share

-- Non-GAAP net income: $40.3 million or $0.38 per diluted share

-- Operating margin: 21.5% GAAP, 28.7% non-GAAP

-- Cash generated from operations: $40.3 million

Financial Results

Net revenue for the first quarter of fiscal 2012 was $151.6 million and increased 6% from $142.6 million in the same quarter last year. Revenue from Host Products was $109.8 million during the first quarter of fiscal 2012 and increased 7% from $102.5 million in the same quarter last year. Revenue from Network Products was $21.9 million during the first quarter of fiscal 2012 compared to $25.6 million in the same quarter last year. Revenue from Silicon Products was $16.8 million during the first quarter of fiscal 2012 and increased 42% from $11.9 million in the same quarter last year.

Net income on a GAAP basis for the first quarter of fiscal 2012 increased to $32.4 million, or $0.31 per diluted share, from $25.4 million, or $0.22 per diluted share, for the first quarter of fiscal 2011. Net income on a non-GAAP basis for the first quarter of fiscal 2012 increased to $40.3 million, or $0.38 per diluted share, from $34.7 million, or $0.30 per diluted share, for the first quarter of fiscal 2011.

"We are very pleased with the performance of our business in the first quarter. Our revenue of $151.6 million in the first quarter was up 6% over the prior year and was at the high end of our guidance range, driven by strength in both Host and Silicon Products," said Simon Biddiscombe, president and chief executive officer, QLogic. "We continue to see tangible benefits from our focus and investments in expansion markets. Our results in the first quarter were highlighted by strong growth in revenue from converged and 10Gb Ethernet products, which grew more than 20% sequentially for the second consecutive quarter."

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 first 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. 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 (719) 457-2632, pass code: 8634537.

The financial information that the company intends to discuss during the conference call will be available on the company's website at http://ir.qlogic.com for twelve months following the conference call. A replay of the conference call will be available via webcast at http://ir.qlogic.com for twelve months.