perfected its ability to squeeze in the fourth quarter. The component maker finished a little light on revenue, with $406 million, but outpaced analysts' estimates solidly with a 20-cents-a-share pro forma loss. Taking into account special charges related to inventory and R&D, LSI lost 68 cents a share.
Wall Street was expecting $409.6 million in revenue and a 24-cents-a-share loss, according to Multex.com. Revenue fell 46% from $751 million in the fourth quarter of 2000, when earnings were 34 cents a share.
LSI shares moved up slightly in Wednesday trading to $14.31.
The company participates in a wide range of sectors, which makes it difficult to determine when all of its businesses will finally hit bottom. At the very least, revenue managed to regain ground, creeping up 2% from the third-quarter's $397 million in revenue.
Management suggested during the quarter that the lagging storage and semiconductor component segments had stopped their fall. Wednesday, CEO Wilfred Corrigan predicted growth in the company's communications and storage businesses in the first quarter currently under way, defying what is traditionally a weak quarter following the holidays. Corrigan predicted that LSI would get back to profitability in the second half of the year, mirroring other chipmakers' comments about a rebound later in 2002. The company expects revenue to hold steady or perhaps grow 3% in the first quarter, for a range of $406 million to $418 million, while losses will narrow to 14 cents a share. Before Wednesday's report, Wall Street was anticipating a $419 million finish in the first quarter of 2002, with a loss of 20 cents a share.
The company warned Jan. 16 that LSI would whittle down its costs to more closely match its level of revenue. The chipmaker announced that it would get out of the digital subscriber line and CDMA (code division multiple access) handset businesses, consolidate its manufacturing operations and reduce its employee base. LSI will cut 20% of its workforce, some 1,400 workers.
LSI raised $450 million to boost the $775 million in cash and short-term investments with which it ended the third quarter. It ended the fourth quarter with $1 billion on hand.