H.K. Desai, Chief Executive Officer Simon Biddiscombe, Sr. Vice President and CFO

Transcription

1 H.K. Desai, Chief Executive Officer Simon Biddiscombe, Sr. Vice President and CFO 1

2 Safe Harbor Statement During the course of this presentation, we may make forward-looking statements regarding the future events or the future performance of the Company. Actual events or results could differ materially. We refer you to the documents the Company files from time to time with the Securities and Exchange Commission, including the Company s most recent Form 10-K and Form 10-Q. These documents identify important information and risk factors that could cause actual events or results to differ materially from those contained in any forward-looking statements. 2

3 Company Overview High Performance Network Infrastructure Solutions TTM revenue Q2-FY09: $657 million Based in Aliso Viejo, California ± 1,000 employees $1.7 billion market cap No debt Member, S&P 500 Strong operating cash $212 million FY08 $421 million in cash and marketable securities at Q2-FY09 New stock buyback of $300 million announced Nov. 08 $1.55 billion authorized to date Munich London Tokyo United States Dublin Hong Kong Beijing Taipei Guadalajara Pune 3

4 QLogic Product Portfolio Host Products FC, FCoE, iscsi and InfiniBand Adapters Network 18% Network Products FC and InfiniBand Switches & iscsi Routers Host 71% Silicon 9% Other 2% Silicon Products Protocol Controllers First Half Fiscal Year 2009 Revenue $339.6 Million 4

5 Selected Customers OEM ±75% Channel ±25% End User 5

6 Product Applications Data and Storage Networking Fibre Channel, iscsi and FCoE Small, Medium and Large Enterprises across all Industries High Performance Computing InfiniBand Academic Research Financial Services Petroleum Government Agencies 6

7 QLogic Growth Drivers 1. Fibre Channel Market leader in 4Gb HBAs Strong growth in blade and edge switch markets Major OEM win First to market with 8Gb End-to-end 8Gb solutions Qualified and shipping with all major OEMs 16Gb in development 7

8 Fibre Channel HBA Revenue Market Share 60% 54.8% 50% 40% 36.5% 30% 20% 10% 8.6% 0% 3Q05 4Q05 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q08 2Q08 3Q08 8 QLogic Emulex Others * Others includes LSI, Apple, ATTO, HP, IBM and Interphase Source: Dell Oro 3Q08 SAN Report

9 QLogic Growth Drivers 2. Fibre Channel over Ethernet First to market with FCoE Converged Network Adapters (CNAs) Both Fibre Channel and Ethernet expertise Highly successful FCoE Test Drive and Plugfest Benefits of convergence Simplicity, flexibility, cost and efficiencies No significant new software No changes in operational models High performance characteristics Provides investment protection 9

10 QLogic Growth Drivers 3. High Performance Computing with InfiniBand Validated IB network interoperability 40 HPC vendors Major OEM design wins for IB switches Dual Data Rate HCAs shipped in June Quad Data Rate HCAs available early 2009 Using new QLogic TrueScale TM QDR ASIC platform Quad Date Rate switches available early 2009 Using new QLogic TrueScale TM switch QDR ASIC platform 10

11 Operating Model Non-GAAP* (Dollars in Millions) FY08 Q1FY09 Q2FY09 Long-Term Business Model Revenue $ % $ % $ % Gross Margin $ % $ % $ % 67-68% Engineering & Development $ % $ % $ % 18-21% Sales & Marketing $ % $ % $ % 11-14% General & Administration $ % $ 6 3.6% $ 7 4.4% 4% Operating Profit $ % $ % $ % 30% + Net Income $ % $ % $ % 20% + March Fiscal Year End * Excludes acquisition-related charges, stock-based compensation, impairment charges related to intangible assets and marketable securities, special charges, and the related income tax effects. 11

12 Key Financial Trends Quarterly Revenue Trend Margin Trends - Non-GAAP* $ Thousands $180,000 $170,000 $160,000 $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80, Dec- 05 Mar- Dec- Mar- Dec- Mar % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Dec- 05 Mar- Dec- Mar- Dec- Mar Revenue Gross Margin Operating Margin * Excludes acquisition-related charges, stock-based compensation, impairment charges related to intangible assets and marketable securities, special charges, and the related income tax effects. 12

13 Summary An Industry Leader with Tier One OEMs Diversified Product Portfolio Excellent Financial Profile and Operating Model Strong Cash Flow Significant Stock Buyback Program in Place Focus for FY Gb Fibre Channel (Host and Switch Products) High Performance Computing (HPC) / InfiniBand Fibre Channel over Ethernet (FCoE) 13

14 Thank You! 14