Computer chipmaker LSI Logic ( LSI) met analysts' consensus earnings forecast for the latest first quarter, but the top line dropped sharply, both sequentially and compared with the year-ago period.

The Milpitas, Calif., company said first-quarter revenue totaled $517 million, a 31% decline from $751 million in the fourth quarter and 16% below the same quarter a year ago.

LSI earned 3 cents a share, meeting the consensus estimate of analysts polled by Thomson Financial/First Call. The company earned 26 cents a share in the year-ago period.

The company attributed the drop to "the abrupt decline of the U.S. economy, weakened end-demand and the widespread accumulation of inventory in the supply chain." LSI expects second-quarter revenue to fall 10% to 15% from the first-quarter top line, and the company projected a loss of 7 cents a share, before items, for the period. Wall Street expects the company to earn a penny a share.

The outlook for the second half of the current fiscal year was slightly more upbeat. "While our visibility is limited, there are indicators that point to the resumption of revenue growth in the second half of the year," the company said.

LSI Logic closed down 2% to $19.50 in regular trading today, and is up 16.4% for the year to date.