QLogic Beats Estimates

Net earnings benefit from a $130 million gain on an asset sale.
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QLogic

(QLGC)

posted a fiscal third-quarter profit that topped both company and Wall Street estimates, aided by strong growth in revenue from host bus adapters and switches.

For the quarter ended Jan. 1, the maker of storage networking products reported earnings from continuing operations of $31.7 million, or 39 cents a share, up from $32 million, or 34 cents a share, a year earlier. Excluding certain items, earnings were 38 cents a share.

The results beat the company's own forecast, given in an October conference call, for earnings from continuing operations of 32 cents to 35 cents a share. Analysts polled by Thomson First Call had an average estimate for earnings of 35 cents a share.

The profit from continuing operations excludes a $130 million gain on the sale of the company's hard-disk drive and tape drive controller business to

Marvell Technology

(MRVL) - Get Report

. Including all items, QLogic's net income surged to $166.2 million, or $2.04 a share, from $43.4 million, or 46 cents a share, in the year-earlier quarter.

Revenue, meanwhile, rose 11% to $129.2 million from $116 million a year earlier. QLogic's forecast had called for revenue of $121 million to $125 million, while analysts expected revenue of $125 million.

The company's core storage area network infrastructure products -- composed of host bus adapters, switches and silicon -- had 14% year-over-year revenue growth to $120.4 million.

Shares of QLogic rose 65 cents, or 1.8% in after-hours trading, to $36.71.