NEW YORK (AP) -- QLogic's stock slid to its lowest point in more than three years on Friday as the computer networking gear maker's first-quarter results and second-quarter guidance fell short of Wall Street expectations.
THE SPARK: QLogic said late Thursday that its net income dropped 43 percent to $18.4 million, or 19 cents per share, from $32.4 million, or 32 cents per share. Earnings were 26 cents per share, when removing stock-based compensation and other items.
Revenue for the period ended July 1 declined 10 percent to $130.4 million from $144.5 million.
Analysts surveyed by FactSet forecast earnings of 27 cents per share on revenue of $131.3 million.
For the second quarter, the Aliso Viejo, Calif. company anticipates adjusted earnings of 16 cents to 20 cents per share on revenue of $115 million to $120 million.
Wall Street predicts earnings of 30 cents per share on revenue of $138 million.
THE ANALYSIS: Stifel Nicolaus' Aaron Rakers cut QLogic to "Hold" from "Buy," saying in a client note that the company had a weak quarter and provided a soft guidance for the second quarter.
Paul Mansky of Cantor Fitzgerald kept a "Hold" rating but reduced QLogic's price target to $13 from $15 on higher-than-expected expenses.
SHARE ACTION: Shares of Corp. plunged $2.45, or 19.4 percent, to $10.15 in midday trading. The stock dropped to $9.56 earlier in the session, the lowest it has been since March 2009. The shares are off 18 percent for the year to date.