DOW JONES NEWSWIRES
LSI Corp. (LSI) swung to a first-quarter profit--its third in a
row after a string of losses--on double-digit sales growth and
sharply higher margins.
Shares fell 3% to $6.20 in after-hours trading as the
storage-chip maker's revenue was in line with guidance though its
earnings topped it. The stock had gained 68% in the past year
through the close.
LSI also projected second-quarter earnings of 8 cents to 14
cents a share on revenue of $635 million to $665 million. Analysts
estimated 10 cents and $642.8 million, respectively, according to a
poll by Thomson Reuters.
LSI cited greater-than-expected strength in business spending on
information technology in raising its guidance last month. The
company's largest customer, Seagate Technology Inc. (STX), last
week reported record shipments of its hard-disk drives along with
results that topped expectations.
For the latest quarter, LSI reported a profit of $22.5 million,
or 3 cents a share, compared with a year-earlier loss of $103.5
million, or 16 cents a share. Excluding stock-based compensation
and other items, earnings were 14 cents, compared with a loss of 3
cents.
Revenue climbed 32% to $637.2 million.
Last month, LSI raised its guidance to earnings of 7 cents to 11
cents on revenue of $620 million to $640 million.
Gross margin rose to 42.6% from 36.3%.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com