QLogic Corp. (NASDAQ: QLGC) makes electronics used to transfer large amounts of data between computer components -- usually servers. Host products, which connect computers to network and storage devices, account for 74% of sales. The company outsources manufacturing and focuses on product design, development, and sales to original equipment manufacturers (OEMs) and distributors. Its chief customers include Hewlett-Packard, IBM, Sun Microsystems, Cisco Systems,and Dell.
Sales of QLogic's products have shifted with the increased adoption of blade servers -- more compact and cost-effective than traditional rack-mounted servers. The company's revenue for host products (heavily used in blade server environments) grew by 6.65% in 2008, while the company's revenue for silicon products (almost exclusively used in non-blade server environments) decreased by 42%. (Read more at Wikinvest )