Why QLogic Crashed (QLGC)

Why QLogic Crashed

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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 QLogic (Nasdaq: QLGC ) crashed today, down by 24% at the low, after the company reported earnings that were short of expectations.

So what: First quarter revenue came in at $130.4 million, with adjusted earnings per share of $0.26. Those barely missed the market’s targets of $131.3 million up top, and $0.27 per share in profit down below. Both revenue and profit shrank relative to the same quarter a year ago.

Now what: CEO Simon Biddiscombe cited global macroeconomic challenges, which is a pretty common scapegoat nowadays. The company remains focused on its Adaptive Convergence strategy despite its near-term challenges. As a player in the network infrastructure sector, the soft IT spending environment is weighing on many companies, including QLogic.

Interested in more info on QLogic? Add it to your watchlist by clicking here.

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