QLogic Shares Surge 9% As Q2 Results Top Estimates

(RTTNews) - Shares of QLogic Corp. (QLGC) surged nearly nine percent in extended trading on Thursday after the network infrastructure solutions provider reported results for the second quarter that topped analysts' expectations. However, the company's reported a profit for the quarter that remained flat with last year, despite double-digit revenue growth.

"We delivered both revenue and non-GAAP earnings per diluted share that exceeded the high end of our guidance range. Based on our current execution, compelling product portfolio, and design win and qualification activity, we are well positioned to continue solid revenue and earnings per share performance during the second half of fiscal 2015," President and CEO Prasad Rampalli said in a statement.

The Aliso Viejo, California-based company reported net income of $11.01 million or $0.12 per share for the quarter, compared to $11.0 million or $0.13 per share in the prior-year quarter.

Excluding items, adjusted income for the quarter was $22.02 million or $0.25 per share, compared to $20.04 million or $0.23 per share in the year-ago quarter.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.

Total net revenues for the quarter increased 13 percent to $127.50 million from $112.62 million in the same quarter last year, and topped eight Wall Street analysts' consensus estimate of $124.44 million.

The company noted that growth in net revenue was driven by a sequential increase in revenue from Fibre Channel adapters in excess of 5 percent and a sequential increase in revenue from Ethernet products of about $5 million.

Net revenues from advanced connectivity platforms grew 22 percent to $114.88 million from $94.01 million, while net revenues from legacy connectivity products declined to $12.63 million from $18.61 million in the prior-year quarter.

Additionally, QLogic announced that its board of directors has authorized a program to repurchase up to $100 million of the company's outstanding common stock over a period of up to 18 months.

"The stock repurchase program that we announced today underscores the Board's ongoing commitment to enhancing shareholder value, as well as our confidence in our long-term business growth prospects and financial outlook," Rampalli added.

QLGC closed Thursday's regular trading session at $9.55, down $0.06 or 0.57% on a volume of 2.09 million shares. However, the stock surged $0.84 or 8.75% in after-hours trading.