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LSI Reduces 4Q Earnings, Revenue Forecast

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LSI Logic

(LSI) - Get Free Report

reduced its fourth-quarter financial forecast, citing lowered short-term demand resulting from the buildup of inventory.

The communications chipmaker, headquartered in Milpitas, Calif., said it expects fourth-quarter earnings of 34 cents a share, compared with earnings of 24 cents a share in the same period last year. This falls short of the 20-analyst estimate on

First Call/Thomson Financial

, which called for fourth-quarter earnings of 36 cents a share.

Fourth-quarter revenue is expected to grow 3% to 4% from third-quarter revenue of $728 million. Prior guidance called for a 10% sequential growth in revenues. LSI also said it expects gross margin to be comparable to the 43.3% in the third quarter, down slightly from prior guidance of 44%.

Shares of LSI closed Monday at $18.19 on the

New York Stock Exchange

, down from a 52-week high of $90.38.