Qlogic Slashes Q1 Outlook On Lower Than Expected Demand - Quick Facts

(RTTNews) - Network infrastructure solutions provider QLogic Corp. (QLGC) said it now expects adjusted net income for the first quarter of fiscal 2016 in a range of $0.16 to $0.17 per share, down from the previously forecast range of $0.23 to $0.27 per share.

On average, seven analysts polled by Thomson Reuters currently expect the company to report earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.

The company also anticipates reported net income for the quarter in the range of $0.00 to $0.01 per share.

The company said adjusted net income amount excludes stock-based compensation, amortization of acquisition-related intangible assets, other charges, and income tax adjustments.

QLogic also slashed its net revenue guidance for the quarter to about $113 million from the prior projection range of $124 million to $132 million. Five Wall Street analysts currently have a consensus revenue estimate of $128.29 million for the quarter.

The company said the preliminary results reflect lower than expected demand due to general weakness in its traditional enterprise server and storage markets, and a build-up of inventory at certain of its OEM customers due to a slower next-generation server transition in enterprise environments.

The company noted that the preliminary results of operations for the first quarter represent the most current information available to management. The company is scheduled to announce financial results for the first quarter of fiscal 2016 on July 30, 2015.