Semiconductor maker

LSI Logic

(LSI) - Get Report

said second-quarter results surpassed analyst estimates, as sales to consumer electronics and storage providers offset weakness in its server and telecom segments.

The company also projected a 10% rise in third-quarter revenue and reaffirmed its goal of turning a pro forma profit in the second half of 2002.

In after-hours trading, shares jumped 9%, or 60 cents, to $7.34, from their earlier close of $6.75. The stock lost 0.6% in Wednesday trading.

The maker of chips used in consumer electronics and communications posted a GAAP loss of $62 million, or 17 cents a share. That's a marked improvement from last quarter's 47-cent loss, though still worse than last year's loss of 3 cents a share.

LSI had a pro forma loss of 6 cents on revenue of $438 million, surpassing analyst estimates of a 9-cent loss on $429 million in sales.

Those results reflect a $5 million charge for additional excess inventory, a $43 million writedown for amortization of acquisition-related items, and a $6 million net benefit for restructuring of operations.

Revenue was up 6% sequentially, though down 6% from year-ago levels.

In a statement, CEO Wilfred Corrigan said LSI is gaining momentum in revenue, gross margins and the bottom line. "Our bookings increased sequentially each quarter for the past four quarters. We achieved positive operating cash flow in the second quarter. We are on target to return to pro forma profitability in the second half of the year."

For the third quarter, LSI projects a pro forma loss of about 2 cents a share; analysts' current estimate is for a 4-cent loss.