• Q1 net revenue of $116.4 million
• Q1 operating margin of 12.9% GAAP; 23.5% non-GAAP
• Q1 diluted EPS of $0.22 GAAP; $0.29 non-GAAP
• Cash and marketable securities: $365.3 million as of July 3, 2016
• On June 15, 2016, QLogic entered into a merger agreement with Cavium, Inc. (Cavium)

ALISO VIEJO, Calif. — (BUSINESS WIRE) — July 26, 2016 — QLogic Corp. (Nasdaq: QLGC), a leading supplier of high performance network infrastructure solutions, today announced its first quarter financial results for the period ended July 3, 2016.

Net revenue for the first quarter of fiscal 2017 was $116.4 million compared to $113.4 million in the same quarter last year. Revenue from Advanced Connectivity Platforms was $108.6 million during the first quarter of fiscal 2017 compared to $102.6 million in the same quarter last year.

Net income on a GAAP basis for the first quarter of fiscal 2017 was $18.3 million, or $0.22 per diluted share, compared to $2.6 million, or $0.03 per diluted share, for the first quarter of fiscal 2016. Net income on a non-GAAP basis for the first quarter of fiscal 2017 was $24.9 million, or $0.29 per diluted share, compared to $16.5 million, or $0.19 per diluted share, for the first quarter of fiscal 2016.

Business Outlook

Due to the pending acquisition by Cavium, QLogic will not be providing earnings guidance for the second quarter of fiscal 2017.

Non-GAAP Financial Measures

QLogic uses certain non-GAAP financial measures to supplement financial statements based on GAAP. A summary of the historical non-GAAP financial measures and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as a description of the reasons that management believes that these non-GAAP financial measures provide useful information to investors and the additional purposes for which management uses these non-GAAP financial measures, is presented in the accompanying financial schedules.

Conference Call

In light of the pending acquisition by Cavium, QLogic will not hold a conference call to discuss its financial results.

QLogic – the Ultimate in Performance

QLogic (Nasdaq: QLGC) is a global leader and technology innovator in high performance server and storage networking connectivity products. Leading OEMs and channel partners worldwide rely on QLogic for their server and storage networking solutions. For more information, visit www.qlogic.com.

Disclaimer – Forward-Looking Statements

This press release contains statements relating to future results of the company (including certain statements regarding the pending acquisition by Cavium) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied in the forward-looking statements. The company advises readers that these potential risks and uncertainties include, but are not limited to: the possibility that the Cavium exchange offer and merger will not close within the anticipated time periods or at all; potential fluctuations in operating results; the company's ability to compete effectively with other companies; unfavorable economic conditions; the ability to attract and retain key personnel; gross margins that may vary over time; the stock price of the company may be volatile; the company's dependence on the networking markets served; the company's dependence on a small number of customers; the ability to maintain and gain market or industry acceptance of the company's products; the company's dependence on sole source and limited source suppliers; the company's dependence on third-party subcontractors and contract manufacturers; uncertain benefits from strategic business combinations, acquisitions and divestitures; the complexity of the company's products; declining average unit sales prices of comparable products; sales fluctuations arising from customer transitions to new products; seasonal fluctuations and uneven sales and purchasing patterns with customers and suppliers; changes in the company's tax provisions or adverse outcomes resulting from examination of its income tax returns; international economic, currency, regulatory, political and other risks; changes in and compliance with regulations; system security risks, data protection breaches and cyber-attacks; the ability to protect proprietary rights; the ability to satisfactorily resolve any infringement claims; facilities of the company and its suppliers and customers are located in areas subject to natural disasters; declines in the market value of the company's marketable securities; difficulties in transitioning to smaller geometry process technologies; the use of "open source" software in the company's products; and the company’s ability to borrow under its credit agreement is subject to certain covenants.