First Quarter Highlights

Net revenue: $122.8 million.

Net income: $15.0 million GAAP, $23.9 million non-GAAP.

Net income per diluted share: $0.13 GAAP, $0.20 non-GAAP.

Cash generated from operations: $16.9 million.

Cash and investment securities: $354.8 million as of June 28, 2009.

Financial Results

Net revenue for the first quarter of fiscal 2010 was $122.8 million compared to $168.4 million in the same quarter last year. Revenue from Host Products was $88.3 million during the first quarter of fiscal 2010 compared to $120.7 million in the same quarter last year. Revenue from Network Products was $25.0 million during the first quarter of fiscal 2010 compared to $29.9 million in the same quarter last year. Revenue from Silicon Products was $7.4 million during the first quarter of fiscal 2010 compared to $15.6 million in the same quarter last year.

Net income on a GAAP basis for the first quarter of fiscal 2010 was $15.0 million, or $0.13 per diluted share, compared to $31.6 million, or $0.24 per diluted share for the first quarter of fiscal 2009. Net income on a non-GAAP basis for the first quarter of fiscal 2010 was $23.9 million, or $0.20 per diluted share, compared to $42.0 million, or $0.31 per diluted share for the first quarter of fiscal 2009.

"We are pleased with the stability of the revenue from our Host and Network Products, which was consistent with our expectations," said H. K. Desai, chief executive officer, QLogic. "We are also encouraged by the signs of stabilization within our business as demonstrated in the trends we are seeing from our OEM customers."

QLogic uses certain non-GAAP financial measures to supplement financial statements based on GAAP. A summary of these non-GAAP financial measures and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as a description of the reasons that management believes that these non-GAAP financial measures provide useful information to investors and the additional purposes for which management uses these non-GAAP financial measures is presented in the accompanying financial schedules.

QLogic's fiscal 2010 first quarter conference call is scheduled for today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). H.K. Desai, chief executive officer, and Simon Biddiscombe, senior vice president and chief financial officer, will host the conference call. The call is being webcast live via the Internet at http://ir.qlogic.com and www.earnings.com. Phone access to participate in the conference call is available at (719) 325-4842, pass code: 4499133.

The financial information that the company intends to discuss during the conference call will be available on the company's website at http://ir.qlogic.com for twelve months following the conference call. A replay of the conference call will be available via webcast at http://ir.qlogic.com for twelve months.