LSI's View Light

Updated from 4:48 p.m. EDT

LSI(LSI Quote - Cramer on LSI - Stock Picks) doubled its profit in the first quarter, besting its own projections.

But the company's outlook for the current quarter was significantly below Wall Street expectations, raising questions about the recent $4 billion merger with Agere Systems .

LSI said late Wednesday that sales in the current quarter -- the first to include Agere -- will range between $715 million and $745 million. Analysts had been looking for $836 million in sales.

And the company said it will lose between 40 cents and 49 cents a share. Excluding charges, LSI said its EPS will range between break-even and 3 cents vs. analysts' expectations of 10 cents a share.

LSI's stock slid 6.2%, or 62 cents, to $9.30 in extended trading.

In a postearnings conference call, LSI executives said the soft sales forecast owed to a variety of temporary adverse market conditions, including recent consolidation among customers in the networking industry that has led to a pause in orders, as well as disappointing performance in the consumer chips business.

LSI also said that purchase accounting rules mean it will not be able to recognize some $15 million in IP revenue in the current quarter.

"The June quarter revenue is being impacted by isolated and well understood items," said CEO Abhi Talwalkar. "We are well positioned for revenue growth in the second half."

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