SUMMARY OF RECONCILING ITEMS BETWEEN FORECASTED
NON-GAAP
AND GAAP EARNINGS PER DILUTED SHARE
FOURTH QUARTER OF FISCAL 2016
QLogic is forecasting fourth quarter non-GAAP earnings per diluted share of $0.23 - $0.27. The Company estimates that GAAP earnings per diluted share will be lower than non-GAAP earnings per diluted share by $0.07 - $0.09 per share in the fourth quarter of fiscal 2016. This difference is comprised of the following:
Stock-based compensation | $0.05 - $0.06 | |||
Amortization of acquisition-related intangible assets and license fee | $0.05 | |||
Income taxes | ($0.03 - $0.02) | |||
$0.07 - $0.09 | ||||
The Company’s forecasted guidance is a forward-looking statement and does not include the effects of future acquisitions/divestitures, unanticipated asset impairments and other special charges, and other non-recurring items not reflective of ongoing operations. Our forward-looking estimates of both GAAP and non-GAAP measures of our financial performance may differ materially from our actual results and should not be relied upon as statements of fact.
QLOGIC CORPORATION | ||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(unaudited — in thousands) |
||||||||||||
December 27, | March 29, | |||||||||||
2015 | 2015 | |||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 87,069 | $ | 115,241 | ||||||||
Marketable securities | 212,405 | 201,174 | ||||||||||
Total cash and marketable securities | 299,474 | 316,415 | ||||||||||
Accounts receivable, net | 69,736 | 87,436 | ||||||||||
Inventories | 40,276 | 29,978 | ||||||||||
Other current assets | 17,023 | 21,802 | ||||||||||
Total current assets | 426,509 | 455,631 | ||||||||||
Property and equipment, net | 74,081 | 78,501 | ||||||||||
Goodwill | 167,232 | 167,232 | ||||||||||
Purchased intangible assets, net | 66,521 | 77,659 | ||||||||||
Deferred tax assets | 44,424 | 48,880 | ||||||||||
Other assets | 18,625 | 20,752 | ||||||||||
$ | 797,392 | $ | 848,655 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 27,756 | $ | 40,497 | ||||||||
Accrued compensation | 16,466 | 22,476 | ||||||||||
Accrued taxes | 1,439 | 2,711 | ||||||||||
Other current liabilities | 9,756 | 11,718 | ||||||||||
Total current liabilities | 55,417 | 77,402 | ||||||||||
Accrued taxes | 12,616 | 14,516 | ||||||||||
Other liabilities | 6,937 | 9,721 | ||||||||||
Total liabilities | 74,970 | 101,639 | ||||||||||
Stockholders’ equity: | ||||||||||||
Common stock | 218 | 215 | ||||||||||
Additional paid-in capital | 1,010,007 | 983,579 | ||||||||||
Retained earnings | 1,750,891 | 1,722,664 | ||||||||||
Accumulated other comprehensive loss | (1,392 | ) | (99 | ) | ||||||||
Treasury stock | (2,037,302 | ) | (1,959,343 | ) | ||||||||
Total stockholders’ equity | 722,422 | 747,016 | ||||||||||
$ | 797,392 | $ | 848,655 | |||||||||
QLOGIC CORPORATION |
||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(unaudited — in thousands) |
||||||||||||
Nine Months Ended | ||||||||||||
December 27, | December 28, | |||||||||||
2015 | 2014 | |||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 28,227 | $ | 39,445 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 30,618 | 35,511 | ||||||||||
Stock-based compensation | 12,157 | 15,178 | ||||||||||
Deferred income taxes | 4,616 | (316 | ) | |||||||||
Asset impairments | 1,954 | 1,455 | ||||||||||
Other non-cash items, net | 674 | 1,257 | ||||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | 17,905 | (29,892 | ) | |||||||||
Inventories | (10,298 | ) | (12,903 | ) | ||||||||
Other assets | 3,234 | 1,236 | ||||||||||
Accounts payable | (7,365 | ) | 4,121 | |||||||||
Accrued compensation | (6,010 | ) | (7,501 | ) | ||||||||
Accrued taxes, net | (8,543 | ) | 1,147 | |||||||||
Other liabilities | (3,846 | ) | (11,398 | ) | ||||||||
Net cash provided by operating activities | 63,323 | 37,340 | ||||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of available-for-sale securities | (173,476 | ) | (123,431 | ) | ||||||||
Proceeds from sales and maturities of available-for-sale securities | 159,911 | 116,260 | ||||||||||
Purchases of property and equipment | (21,991 | ) | (15,420 | ) | ||||||||
Proceeds from disposition of assets held for sale | 7,553 | — | ||||||||||
Net cash used in investing activities | (28,003 | ) | (22,591 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from issuance of common stock under stock-based awards | 20,010 | 5,144 | ||||||||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (5,736 | ) | (3,589 | ) | ||||||||
Purchases of treasury stock | (78,859 | ) | (11,834 | ) | ||||||||
Other financing activities | 1,093 | (220 | ) | |||||||||
Net cash used in financing activities | (63,492 | ) | (10,499 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | (28,172 | ) | 4,250 | |||||||||
Cash and cash equivalents at beginning of period | 115,241 | 91,258 | ||||||||||
Cash and cash equivalents at end of period | $ | 87,069 | $ | 95,508 | ||||||||
QLOGIC CORPORATION