QLogic posts lower 2Q profit as sales slump

QLogic reports lower 2nd-quarter profit and sales but says sees signs of stability

• On 7:53 pm EDT, Wednesday October 21, 2009

ALISO VIEJO, Calif. (AP) -- Network equipment maker QLogic Corp. said Wednesday its fiscal second-quarter profit declined as revenue fell, but the company said it is "cautiously optimistic" given signs of stability and early indicators of recovery in its business.

For the three months ended Sept. 27, the company earned $16.2 million, or 14 cents per share, down from a profit of $27.2 million, or 20 cents per share, in the same period a year earlier. Adjusted earnings totaled 21 cents per share in the latest period.

Revenue fell 23 percent to $131.5 million from $171.2 million.

Analysts, on average, were expecting a profit of 18 cents per share on sales of $125.7 million, according to a poll by Thomson Reuters.

"We are cautiously optimistic given the signs of stability and early indicators of recovery we are experiencing in our business," said CEO H.K. Desai, in a statement. "We are encouraged by the improvements we experienced in order trends and shipments during the second quarter."

Shares slid 48 cents to $17.60 in after-hours trading. The stock had closed earlier down 71 cents, or 3.8 percent, at $18.08.