Shares of QLogic Corp. (Nasdaq: QLGC), a leading maker of semiconductor and board-level I/O (input/output) products, jumped 7 percent Friday after the company announced first quarter earnings of 60 cents a share, a dime better than First Call estimates.
Shares shot up 9 1/4 to 149 1/8 on the earnings surprise. Buying also came on the back of a stock-split announced Thursday.
QLogic's products connect computer systems and their attached data storage peripherals. First quarter net income of $11.5 million, or 60 cents a share, is an increase of 141 percent, compared to the $4.8 million, or 26 cents a share recorded a year ago. Revenue for its first quarter rose to a record $43.2 million, up 79 percent compared to the $24.1 million reported for the same quarter last year.
The company also announced Thursday a two-for-one stock split. On July 30, 1999, stockholders will be entitled to one additional share for every share they own on the record date of July 22, 1999. Following the split, QLogic will have about 36 million shares outstanding.
"Fibre Channel revenue continued to outpace the rest of our I/O business in the first quarter, expanding 272 percent from a year ago to $9.3 million, or 22 percent of total revenue,'' said Chairman, CEO and President H.K. Desai, in a company statement. QLogic also benefited $3.5 million from the receipt of initial royalties from their Integrated Drive Electronics (IDE) hardware during the first quarter.
First Call averages have the California-based company pulling in $2.08 a share for the 1999 fiscal year. Four of 7 analysts covering the stock rate it a strong buy, according to Zachs Investment Research.