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QLogic Announces Definitive Agreement to Sell InfiniBand Assets for $125 Million

QLogic Corp., a leading supplier of high performance network infrastructure solutions, today announced a definitive agreement to sell the product lines and certain assets associated with its InfiniBand business to Intel Corporation for $125 million in cash. The sale is expected to close within this quarter, following the satisfaction of regulatory requirements and other customary closing conditions.

“The sale of these InfiniBand assets will benefit our shareholders by enabling us to provide better focus and greater investment in growth opportunities for the data center with our converged networking, enterprise Ethernet, and storage area networking products. After the sale, our cash position will be further strengthened and we expect the impact on earnings per share to be neutral,” said Simon Biddiscombe, president and chief executive officer, QLogic. “In addition, the sale of these assets to a leading technology innovator and recognized HPC leader will provide a greater investment stream in high performance fabrics for InfiniBand partners and customers.”

The company expects to provide additional information regarding the sale of these assets and its future outlook during its third quarter fiscal year 2012 earnings conference call that is scheduled for Thursday, January 26, 2012 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Simon Biddiscombe, president and chief executive officer, and Jean Hu, senior vice president and chief financial officer, will host the call, which will be webcast live at http://ir.qlogic.com and www.earnings.com. Phone access will be available at (719) 325-4827, pass code: 6745069.

A replay of the conference call will be available via webcast at http://ir.qlogic.com for twelve months.

Published Tuesday, January 24, 2012 6:46 AM by David Marshall
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