QLogic Shares Move Higher After 2Q Profit Beat

ALISO VIEJO, Calif. (AP) — Shares of network equipment maker QLogic Corp. rose more than 5 percent Thursday after the company's results beat fiscal second-quarter profit estimates and it gave a conservative forecast.

Shares added 97 cents, or 5.4 percent, at $19.05 in afternoon trading.

Late Wednesday QLogic reported revenue of $131.5 million and adjusted earnings of 21 cents per share, beating analysts' average estimates of $125.7 million in revenue and 18 cents of earnings per share.

The company cited strength in its host products segment, which rose 6 percent sequentially from the first quarter, and said it is "cautiously optimistic" given signs of stability and early indicators of recovery.

Morgan Keegan analyst Harsh Kumar reiterated an "Outperform" rating on the stock and raised his profit outlook for the year to March to 85 cents per share from 75 cents.

"We feel that QLogic is likely to benefit from the continued server refresh which is expected to continue into calendar 2010 and that it is better positioned than its closest competitors," he wrote in a research note.