QLogic Shares Popped Briefly: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of networking equipment maker QLogic (NAS: QLGC) popped up 12% briefly this morning before giving back most of its gains and is now just 3% higher, after reporting earnings yesterday.
So what: QLogic scored $152.7 million in sales, which turned into a profit of $0.36 per share. Both results came in better than expected, with the market looking for $150.3 million in revenue and a $0.34 per share profit.
Now what: Revenue ticked down slightly compared to last year, while the bottom line shrank by 32%. CEO Simon Biddiscombe was still "very pleased" overall, particularly with QLogic's "host products" segment. The company has just entered into a definitive agreement to sell the assets associated with its Infiniband business, which will let it focus on its core businesses and growth opportunities within data centers.
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