SAN DIEGO--(BUSINESS WIRE)--Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating potential violations of the federal securities laws by QLogic Corporation (NASDAQ: QLGC) and certain of its officers and directors. QLogic designs and supplies high performance server and storage networking infrastructure products that provide, enhance and manage computer data communication.
Specifically, Johnson & Weaver’s investigation seeks to determine whether certain statements regarding QLogic’s business and prospects were false and misleading when made.
On July 9, 2015, QLogic issued a press release announcing its preliminary first quarter fiscal year 2016 results. The Company preliminarily reported net revenue of approximately $113 million for the first quarter of fiscal 2016, compared to its previously forecasted range of $124 million to $132 million. QLogic attributed the lower than expected demand due to “general weakness in the Company’s traditional enterprise server and storage markets, and a build-up of inventory at certain of its OEM customers due to a slower next-generation server transition in enterprise environments.” As a result of this news, the price of QLogic stock dropped $2.98 per share to close at $11 per share on July 9, 2015, a decline of 21%.
Then, on July 30, 2015, after the market closed, QLogic issued a press release announcing its first quarter fiscal year 2016 financial results. The Company reported net income of $2.6 million, or $0.03 diluted earnings per share (“EPS”), and net revenue of $113.4 million for the first fiscal quarter of 2016 ended June 28, 2015. The Company reiterated that its first quarter results were impacted adversely by lower than anticipated demand due to weakness in the Company’s traditional enterprise server and storage markets and inventory build-up primarily at a major OEM customer that had not been identified in a timely basis. As a result of this news, the price of QLogic stock dropped $2.51 per share to close at $8.87 per share on July 31, 2015, a one-day decline of 22%.
If you have information that could assist in this investigation, or if you are a QLogic shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker (firstname.lastname@example.org) by email or by phone at 619-814-4471. If emailing, please include a phone number where you can be reached.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.