Updated from 5:01 p.m. EDTLSI Logic ( LSI) boosted its second-quarter profit thanks to the sale of various assets that the company jettisoned in a plan to change operational focus. But, following setbacks in its consumer electronics business, one of the two foundations upon which LSI recently rebuilt, the company's management indicated tough times ahead. "We don't believe we can continue to sustain the current level of business, long term. It's not optimal," CEO Abhi Talwalkar said of the consumer electronics business, telling analysts on a conference call that LSI would explore strategic "alternatives." LSI shares slipped 0.7%, or 6 cents, to $8 in extended trading. The company's stock is down roughly 33% since April. The main cause of LSI's consumer electronics chagrin is Apple Computer ( AAPL), which said in April that it would no longer use chips supplied by PortalPlayer ( PLAY) in certain models of its popular iPod. LSI provides the silicon component of PortalPlayer's iPod chip. LSI has estimated the loss of that business at around $40 million for the second half of 2006. Meanwhile, LSI's revenue from the Sony ( SNE) PlayStation has also evaporated as that gaming console has reached the end of its lifecycle. These two "revenue discontinuities" will play a large role in LSI's lackluster guidance for the third quarter, which was shy of Wall Street expectations. By contrast, LSI topped analysts' expectations with solid financial results in the recently-ended second quarter. LSI more than doubled its profit in the second quarter, earning $54 million, or 13 cents a share, compared with $25 million, or 6 cents a share, a year ago. The company had second-quarter sales of $490 million. Analysts polled by Thomson First Call were looking for LSI to earn 12 cents a share on revenue of $487 million.