QLogic escapes HBA flat trap with Ethernet and add-on services

Farewell to HBA twin Emulex too; away we go to Avago

QLogic, a storage networking adaptor vendor, is escaping the sagging Fibre Channel host bus adapter (HBA) revenue trap by focussing on fast Ethernet and adding in-line data reduction, availability and encryption services.

Analyst haus Stifel Nicolaus' MD, Aaron Rakers, sees QLogic ramping up its 10GbitE products, with 25/50/100GbitE ones coming. QLogic says it has a time-to-market lead with 32Gbit/s Fibre Channel adapters which should ship early next year.

QLogic revenues are looking healthier than they have done for a while. Fourth fiscal 2015 quarter revenues of US$133.2m were 15 per cent up on a year ago ($115.7m) with profits of $11.1m; a positive turnaround from the $46.8m loss back then. It has 105 16Gbit/s design wins of which only 26 are shipping.

There's plenty of life in the old Fibre Channel dog yet, although the server-attach market is flattish.

QLogic quarterly revenues and net income/loss to Q4 fy2015

The annual picture is here:

QLogic annual revenues and net income/loss to FY 2015

This is a cheering result as the revenue slump that started in 2012 bottomed out in 2014 and revenues are on the upturn, with a $50.6m fiscal 2015 profit compared to a $18.3m loss in FY 2014.