QLogic shares fall after Q4 results miss Street view

viernes 1 de mayo de 2009 17:48 CEST
 

May 1 (Reuters) - Shares of QLogic Corp QLGC.O fell 8 percent on Friday, a day after the company posted fourth-quarter results that missed analysts' expectations.

On Thursday, the company, which supplies parts for data-storage networks, also said it acquired privately held NetXen Inc for about $21 million in cash.

"We believe QLogic made the right acquisition at a reasonable price," ThinkEquity analyst Rajesh Ghai said in a note to clients.

The deal is expected to add $5 million in revenue for the company in fiscal 2010, analysts said.

However, analyst Ghai downgraded the stock to "accumulate," citing the absence of near-term catalyst for the company to grow revenue and the recent sharp rise in the share price.

QLogic's shares, which had risen more than 27 percent over the past one month through Thursday, fell as much as 8 percent to $13 Friday on Nasdaq.

However, Robert W. Baird & Co upgraded QLogic to "outperform" from "neutral."

"We believe the June quarter will mark the trough in EPS with a depressed, but respectable operating margin of 23 percent," analyst Jayson Noland wrote in a note to clients.

The company also forecast first-quarter results that fell short of consensus estimates, due to macroeconomic weakness, Noland said.

For the fourth quarter, QLogic posted earnings of 20 cents a share, lower than analysts' average estimate of 21 cents. [ID:nWNAB1547]

Shares of the company, which competes in the host-products market with companies like Emulex Corp ELX.N, were trading down 88 cents at $13.30 Friday morning on Nasdaq. (Reporting by Shrutika Verma in Bangalore; Editing by Deepak Kannan)