LSI Logic Warns 1Q to be Below Expectations

LSI Logic (LSI Quote - Cramer on LSI - Stock Picks) warned Monday that first-quarter revenue and earnings would come in below forecast.

It was the third chipmaker to issue an earnings warning Monday. Vitesse Semiconductor and Cypress Semiconductor also issued warnings.

LSI blamed a sluggish economy and widespread inventory corrections in the communications and storage markets for the lowered forecast, which called for first-quarter revenue to come in 30% below the fourth-quarter 2000 level. Prior guidance called for a 12% sequential revenue reduction.

With the new guidance, revenue should be about $526 million, down from $751 million in the previous quarter.

The company, which is based in Milpitas, Calif., also estimated that its first-quarter earnings would be 3 cents a share before goodwill, down from a previous projection of 21 cents a share. In the year-ago quarter, LSI earned 26 cents a share.