QLogic may be edging closer to a turnaround, but its latest earnings showed few signs of recovery. The Aliso Viejo, California-based supplier of data center networking equipment reported first quarter sales of $113.1 million, down 13.2 percent from the same period last year and 3.2 percent down from the fourth quarter.

The company’s revenues were in line with management’s guidance range of $110 million to $116 million, but below the average estimate of analysts polled by Zacks. Sales of server and storage connectivity solutions plummeted 13.7 percent year-over-year to $93.2 million, while the Legacy Connectivity Product group declined 10.8 percent to a measly $19.9 million.

QLogic generated a net profit of 10 cents per share in the first quarter, three percent ahead of the Zacks Consensus Estimate but 47.4 percent less than its earnings in the prior year period.

“I am very pleased with our execution and disciplined financial management during the first quarter. The restructuring activities are progressing according to our plan and we are sharply focused on the server and storage connectivity markets,” said an optimistic Jean Hu, the interim chief executive and CFO of QLogic. “With this market focus, I believe we are on the right track to drive the execution of new product opportunities and to deliver improved financial performance.”

QLogic announced in June that it will cut back on engineering in order to save $20 million annually and drive “long-term profitable growth.” Jean Hu launched the initiative in an effort to reverse the massive declines his company experienced under the leadership of Simon Biddiscombe, who resigned just a few weeks prior.

Analysts expect that QLogic’s strong presence in the channel will enable it to sail through these turbulent times.