LSI Logic ( LSI) offered optimistic estimates on its second-quarter financial results and said it plans to sell its Tsukuba, Japan, manufacturing facility. The semiconductor company expects second-quarter revenue to increase about 9% sequentially, near the high end of its previous growth guidance. However, LSI now plans to report $140 million to $160 million in special items, compared with an earlier forecast of $50 million to $70 million in special items. That will lead to a loss, when calculated using generally accepted accounting principles, of 43 cents to 50 cents a share, wider than the earlier projected loss of 23 cents to 31 cents. On a pro forma basis, the company's second-quarter loss expectation (excluding special items) improved by 4 cents, thanks to better-than-expected gross margin expansion and accelerated benefits from cost-reduction programs. Analysts polled by Thomson First Call are looking for a loss of 11 cents and a top line of $398.6 million. LSI Logic will report its second-quarter financial results July 23.