QLogic Corp. QLGC reported fourth-quarter fiscal 2016 adjusted earnings (including stock-based compensation but excluding one-time items) of 26 cents per share, surpassing the Zacks Consensus Estimate of 19 cents. The company’s earningsimproved 8.3% on a year-over-year basis. QLogic reported non-GAAP earnings of 30 cents a share, up 7.1% year over year. Quarter Details Net revenue came in at $119.4 million, down 10.2% on a year-over-year basis but ahead of the Zacks Consensus Estimate of $117 million. Sales were also better than the company’s guided range of $113 million to $119 million. Advanced Connectivity Platform (adapters and silicon for server and storage connectivity applications) revenues decreased 9.3% year over year to $109.5 million. Legacy connectivity product (Switching products) revenues plummeted 19.8% from the year-ago quarter to approximately $9.9 million. Total operating expense decreased 18.9% year over year to $53.3 million. Operating income of $18 million came in much better than $11.8 million in the prior-year quarter. Balance Sheet and Cash Flow As of Apr 3, 2016, QLogic had cash and marketable securities of approximately $354.8 million compared with $316.4 million at the end of Mar 29, 2015. The company generated $121.5 million in cash from operations in fiscal 2016. Guidance In the first-quarter of fiscal 2017, QLogic expects revenues in a range of $112 million to $118 million. Non-GAAP earnings per share are expected to be between 23 cents and 27 cents. Our Take Qlogic’s ongoing restructuring program to streamline its operating expenses is expected to weigh on its financials in the near term. In addition, the company is reducing investments in some of its non-core businesses in order to focus on the development of new products in its core Fibre Channel and Ethernet product portfolios. This restructuring program is expected to continue to impact the company’s top line going ahead. Nonetheless, the company is likely to benefit from the rapid adoption of cloud computing, which is one of the key drivers in the high-end enterprise data center market. Furthermore, QLogic holds the leading position in the Ethernet market due to its strong product portfolio.In 2015, the company had double-digit lead in terms of market share over its peers. Its strong balance sheet is another big positive. Currently, QLogic has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Lantronix, Inc. LTRX, Extreme Networks Inc. EXTR and Netgear Inc. NTGR. All three sport a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QLOGIC CORP (QLGC): Free Stock Analysis Report LANTRONIX INC (LTRX): Free Stock Analysis Report NETGEAR INC (NTGR): Free Stock Analysis Report EXTREME NETWRKS (EXTR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research