("LSI 1Q Profit Down 55% On Discontinued Operations, Charges,"
published at 4:40 p.m. ET, misstated discontinued operations as
continuing operations in the first paragraph. A correct version
follows.)
DOW JONES NEWSWIRES
LSI Corp.'s (LSI) first-quarter profit fell 55% from a
prior-year bolstered by a tax benefit, while a loss from
discontinued operations skewed the latest bottom line.
LSI has transformed itself in recent years from a diversified
chip maker with handset and manufacturing operations, among other
offerings, to a provider of chips for networking and storage. The
company last month shed its external storage systems business for
$480 million to data-storage gear maker NetApp Inc. (NTAP) as part
of its strategy of becoming a pure-play semiconductor company.
LSI reported a first-quarter profit of $10.2 million, or 2 cents
a share, down from $22.5 million, or 3 cents a share, a year
earlier. Excluding stock-based compensation, a prior-year tax
benefit and other items, per-share earnings were 10 cents, down
from 12 cents. Revenue edged up 0.1% to $473.3 million. Revenue
would have fallen about 1% to $629 million if discontinued
operations were included.
The company's January guidance had called for a per-share profit
of 7 cents to 13 cents on revenue of $605 million to $635
million.
Gross margin widened to 52.4% from 51.8% as revenue costs
declined slightly.
The company also projected second-quarter earnings from
continuing operations of 7 cents to 13 cents a share. Analysts
polled by Thomson Reuters were projecting 11 cents.
Shares were down 0.4% at $6.93 after hours. The stock has gained
10% over the past year through the close.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com