MILPITAS, Calif., March 14, 2012 /PRNewswire/ -- LSI
Corporation (NYSE: LSI) today updated its business outlook for the
first quarter ending April 1, 2012,
reflecting a stronger than expected hard disk drive market recovery
and ramp of flash-based products. LSI executives will provide
additional details in an analyst meeting today, March 14, in New York
City.
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Updated First Quarter 2012 Business Outlook
Projected
revenues:
|
In the
range of $585 million to $615 million, up from $550 million to $590
million
|
|
|
Income
from continuing operations per share: (1,4,5)
|
|
GAAP
(2)
|
In the
range of $0.06 to $0.10 per share
|
Non-GAAP
(3)
|
In the
range of $0.12 to $0.16 per share
|
"We are benefiting from better than expected strength in the
hard disk drive market in the quarter as our team has done a great
job working with our customers to meet this additional demand,"
said Abhi Talwalkar, LSI president
and CEO. "This revised guidance reflects strength in our hard disk
drive business as well as upside in our projections for our
flash-based products."
(1) On May 6, 2011, LSI completed
the sale of its external storage systems business. The financial
results of the external storage systems business have been
classified as discontinued operations in LSI's financial
statements. Our ongoing business is referred to as "continuing
operations."
(2) Generally Accepted Accounting Principles.
(3) Excludes goodwill and other intangible asset impairment,
stock-based compensation, amortization of acquisition-related
intangibles, purchase accounting effect on inventory, restructuring
of operations and other items, net, and gain/loss on
sale/write-down of investments. It also excludes the income tax
effect associated with the above-mentioned items and the tax
benefit discussed in note 5. It also excludes, in the case of
non-GAAP net income, gain from the sale of the external storage
systems business.
(4) Revised net income ranges reflect the change in share count
from approximately 575 million shares to 590 million shares. The
change in share count is driven by the increase in our stock price,
which increases the dilutive effect of stock options and restricted
stock unit awards included in the diluted share count
calculation.
(5) The company has not yet finalized the allocation of the
purchase consideration to assets acquired and liabilities assumed
in the recently completed acquisition of SandForce. However,
the company expects that in accounting for the SandForce purchase,
it will recognize a one-time tax benefit of approximately
$41.7 million in the first quarter of
2012 for GAAP purposes only. This tax benefit is due to the
release of a valuation allowance resulting from the net deferred
tax liabilities created from the acquisition, and will be excluded
from our non-GAAP results.
Updated First Quarter 2012 Business Outlook Detail
|
GAAP
(2)
|
Special
Items
|
Non-GAAP (3)
|
Revenue
|
$585
million to $615 million
|
|
$585
million to $615 million
|
Gross
Margin
|
~45%
|
~$40
million
|
~52%
|
Operating Expenses
|
~$268
million
|
~$45
million
|
~$223
million
|
Net
Other Income
|
~$11
million
|
~$6
million
|
~$5
million
|
Tax
|
Benefit of
~$33 million
|
Benefit of
~$42 million
|
Provision
of ~$9 million
|
Income
from Continuing Operations Per Share
|
$0.06 to
$0.10
|
~($0.06)
|
$0.12 to
$0.16
|
Diluted
Share Count*
|
590
million
|
|
590
million
|
*The change in share count is driven by the increase
in our stock price, which increases the dilutive effect of stock
options and restricted stock unit awards included in the diluted
share count calculation.
LSI Analyst Day Event Information
LSI executives will provide additional insight into the
company's strategy and key drivers of financial performance at the
LSI 2012 Analyst Day Event in New York
City, starting at 8:30 a.m.
(EDT).
"Today we will highlight the growth drivers for the company and
demonstrate how our multi-year investment strategy has positioned
LSI to benefit from the tremendous global growth in data as well as
from inflection points like cloud computing, mega datacenters,
mobile networks and flash," continued Talwalkar.
At LSI's event for investors and securities analysts, executive
presentations and topics will include:
Abhi Talwalkar, President and
CEO:
The new LSI, including company strategy and vision and key
market trends.
Jeff Richardson, Chief
Operating Officer:
Product and market overview with a focus on networking, SAS and
hard disk drives.
Greg Huff, Chief Strategy
Officer:
LSI's growth opportunity with flash-based products.
Bryon Look, Chief Financial
Officer:
Long-term financial goals and strategies as well as updated
business model targets.
Investors and others may access a live video webcast of the
presentations beginning at 8:30 a.m.
EDT by visiting the LSI website at
http://www.lsi.com/webcast. Afterwards, a replay of the webcast
will be available on the LSI website at www.lsi.com/webcast.
Forward-Looking Statements: This news release contains
forward-looking statements that are based on the current opinions
and estimates of management. These statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those anticipated in the forward-looking
statements. Factors that could cause LSI's actual results to differ
materially from those set forth in the forward-looking statements
include, but are not limited to: our ability to successfully
integrate and manage the SandForce business and retain its key
employees; our ability to achieve anticipated synergies and to
develop integrated new products following our acquisition of
SandForce; our ability to eliminate costs related to the external
storage systems business that we sold in 2011; our ability to
repurchase our common stock at prices we believe to be
advantageous; the impact of the recent flooding in Thailand; our reliance on major customers and
suppliers; our ability to keep up with rapid technological change;
our ability to compete successfully in competitive markets;
fluctuations in the timing and volumes of customer demand; the
unavailability of appropriate levels of manufacturing capacity; and
general industry and macro-economic conditions. For additional
information, see the documents filed by LSI with the Securities and
Exchange Commission, and specifically the risk factors set forth in
the company's most recent report on Form 10-K. LSI disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
About LSI
LSI Corporation (NYSE: LSI) designs semiconductors and software
that accelerate storage and networking in datacenters and mobile
networks. Our technology is the intelligence critical to enhanced
application performance, and is applied in solutions created in
collaboration with our partners. More information is available at
www.lsi.com.
LSI and the LSI & Design logo are trademarks or registered
trademarks of LSI Corporation.
SOURCE LSI Corporation