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LSI Logic Rockets on Outlook

The semiconductor maker rises 14% after hours.

LSI Logic (LSI) boosted its fourth-quarter revenue target late Tuesday, which it attributes to strength in storage systems, storage components and consumer businesses.

Shares recently rose 14% to $5.73 in the late trading session after closing the regular session down 4.9% to $5.02.

The Milpitas, Calif.-based maker of semiconductors expects a loss of 53 cents to 55 cents a share and sales between $415 million and $420 million compared with earlier projections for a loss of 54 cents to 57 cents a share and sales between $360 million and $390 million.

Excluding charges, LSI expects to earn a penny to 3 cents a share compared with an earlier estimate for a loss of 2 cents to 5 cents a share.

Analysts had expected a loss excluding charges of 4 cents a share on sales of $375 million, according to Thomson First Call.

LSI's new results could presage the completion of a planned IPO for its storage systems unit, which represents about 25% of its total sales.

In July 2004, the company put plans to sell the unit, known as Engenio Information Technologies, on hold, with LSI saying it would continue with the IPO at another time. The initial IPO was slated to rake in $125 million.

LSI on Tuesday had no comment about the IPO but stated that the unit "recorded a very strong fourth quarter."

LSI will announce fourth-quarter results on Jan. 26.