UPDATE 2-QLogic Q1 earnings rise, Q2 outlook beats Wall Street
(Recasts; adds outlook, share movement)
July 21 (Reuters) - QLogic Corp QLGC.O posted a quarterly profit that came in at the high end of its recently raised outlook, as the supplier of components for data storage networks benefited from increased demand for its host and network products.
QLogic, which dominates host products market along with rival Emulex Corp ELX.N, gets almost 70 percent of its revenue from this business, with the core product being fiber channel host bus adapters -- used to connect a server to storage devices.
The Aliso Viejo, California-based company said net income for the first quarter was $31.6 million, or 24 cents a share, compared with $19 million, or 12 cents a share, a year ago.
Excluding special items, the company earned 31 cents a share for the quarter ended June 29.
Revenue rose 20 percent to $168.4 million. Host products sales rose 16 percent, while network products sales rose 22 percent during the quarter.
Analysts on average expected the company to earn 31 cents a share, excluding special items, on revenue of $167.1 million, according to Reuters Estimates.
For the second quarter, the company expects earnings of about 30 cents to 31 cents a share, excluding items, on revenue of $168 million to $172 million, Chief Financial Officer Simon Biddiscombe said in a conference call.
Analysts were expecting the company to earn 28 cents a share, before items, on revenue of $167.7 million.
"Due to broader economic issues, we continue to include a degree of caution in our outlook," Chief Executive HK Desai said on the conference call.
Shares of QLogic, whose top customers are Hewlett-Packard Co (HPQ.N: Cotización), International Business Machines Corp (IBM.N: Cotización) and Sun Microsystems Inc JAVA.O, were trading at $16.70 after the bell. They closed down 12 cents at $16.48 Monday on Nasdaq. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Himani Sarkar)
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