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What: Shares of QLogic (Nasdaq: QLGC) have plunged today by as much as 16% after the company reported disappointing fourth-quarter earnings.

So what: Revenue added up to $135.1 million, with earnings per share of $0.29. Meanwhile, the Street was looking for $137.6 million in sales with profits of $0.32 per share. The company also booked a big gain on the sale of its InfiniBand business to Intel.

Now what: The $109 million gain related to that transaction was excluded from results related to continuing operations. CEO Simon Biddiscombe said the sale will allow QLogic to focus on higher-growth opportunities like converged networking, among others, while also paving the way for increased investment in its current markets. A handful of firms have now cut price targets and estimates on QLogic, including Needham & Company, Goldman Sachs, and BMO Capital.

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Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Intel. Motley Fool newsletter services have recommended buying shares of Intel and Goldman Sachs. The Motley Fool has a disclosure policy.

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