QLogic’s Quarterly Profit Jumps, Lifting Shares

QLogic Corp. shares rose 19% on Friday after the maker of chips that connect disk drives and accessories to computers said fourth-quarter profit more than doubled, aided by new products.

QLogic rose $14.19 to $90.06, after reaching a record $96.25. The shares have gained about 38% this year. Emulex Corp., QLogic’s former parent, rose 22%, or $10.81 a share, to $59.44.

Emulex makes networking equipment that complements QLogic’s. It spun off QLogic into a separately traded company five years ago.

Both companies are based in Costa Mesa.

QLogic makes high-performance chips and equipment that help move data quickly from a computer’s memory chips and microprocessors to disk drives and other accessories.

During the quarter, sales of new high-speed connections, called fiber channel, surged more than eightfold, making up for lack of growth in its traditional chips.

“Fiber channel . . . is where their customers are going and that is where their growth will be,” said Ashok Kumar, an analyst at U.S. Bancorp Piper Jaffray. He rates QLogic a “buy.”

QLogic said net income rose to $8.5 million, or 45 cents a share, in the quarter ended March 28, from $4.2 million, or 24 cents, a year earlier.

It was expected to earn 40 cents, the average estimate of six analysts surveyed by First Call Corp.

Revenue rose 54% to $35.1 million, from $22.7 million.

While QLogic makes chips and adapters used mostly inside computers, Emulex specializes in fiber adapters and hubs used to connect computer networks, as well as software.

Fiber channel transmits data over either fiber-optic or copper wires.

“There’s been a lot of discussion lately about fiber channel, and that has gotten people interested in these companies,” said Michael Geran, a DLJ-Pershing Division analyst.

Emulex rose Friday primarily because QLogic “had a blowout quarter,” said Geran, who rates Emulex a “buy.”