Demand Lifts LSI Logic
Updated from 4:42 p.m. EDT
LSI Logic (LSI) boosted first-quarter profit as the chipmaker reported its first financial results since announcing a new corporate focus.
Sales for the three months ended March 31 increased 6% year over year to $476 million, just slightly below the midpoint of the company's guidance.
Sales were down 6% sequentially, in keeping with the seasonal slowdown described by the company as the toughest quarter of the year.Analysts were looking for $481 million in revenue. LSI earned $19 million, or 5 cents a share, compared with the $5 million, penny-a-share profit the company posted a year ago. Excluding special stock-based compensation expenses and certain acquisition-related charges, LSI earned 11 cents a share, in line with its guidance and analysts' expectations. CEO Abhi Talwalkar said that strong demand for LSI's storage chips and systems helped offset the seasonal sales decline. Revenue from storage systems jumped 22% year over year to $178 million, the second-highest amount in company history. Overall semiconductor sales dipped 2% year over year, to $298 million, due to a slowdown in the video-game industry. In March, LSI announced that it would
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