LSI Spikes on Strong Revenue Forecast

LSI expects first-quarter revenue of $620 million to $640 million, above analysts' forecasts. It sees non-GAAP net income of 7 cents to 11 cents a share.

By Andrea Tse , Mar 17, 2010 9:53 AM EDT

(LSI earnings article updated with early morning stock spike and additional details.)

MILPITAS, Calif. (

TheStreet

) --

LSI

(LSI) - Get Report

announced Wednesday that it expects first-quarter revenue of between $620 million to $640 million, ahead of forecasts, with adjusted net income in the range of 7 cents to 11 cents a share, in line with Wall Street expectations -- and the market has responded by sending shares of the company spiking immediately after the market open.

Shares of LSI were up more than 10.5%, to $6.43, within 20 minutes of the opening bell Wednesday.

Analysts surveyed by Thomson Reuters had expected earnings of 7 cents a share on revenue of $607.7 million.

LSI said the guidance reflects greater-than-anticipated strength in the recovery of enterprise IT spending during the first quarter.

LSI expects first-quarter results in the range of a loss of 3 cents to earnings of 4 cents a share.

-- Reported by Andrea Tse in New York

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