LSI Reports First Quarter 2009 Results
MILPITAS, Calif., April 29, 2009 – LSI Corporation (NYSE: LSI) today reported results for its first quarter ended April 5, 2009.
First Quarter News Release Summary
- First quarter 2009 revenues of $482 million
- First quarter 2009 GAAP* net loss of ($0.16) per share
- First quarter 2009 non-GAAP** net loss of ($0.03) per share
- Cash and short-term investments of $1.1 billion
Second Quarter 2009 Business Outlook
- Projected revenues of $470 million to $530 million
- GAAP* net loss in the range of ($0.09) to ($0.19) per share
- Non-GAAP** net income (loss) in the range of $0.01 to ($0.06) per share
* Generally Accepted Accounting Principles.
** Excludes goodwill and other intangible asset impairment charges, stock-based compensation, amortization of acquisition-related intangibles, restructuring of operations and other items, net, loss on write-down of debt/equity securities, gain on repurchase of convertible subordinated notes and acquired in-process research and development. It also excludes the income tax effect associated with the above mentioned items.
First quarter 2009 revenues were $482 million, a 27% decrease year-over-year compared to $661 million reported in the first quarter of 2008, and down 21% sequentially compared to $610 million reported in the fourth quarter of 2008.
First quarter 2009 GAAP* net loss was $104 million or 16 cents per share, compared to first quarter 2008 GAAP net loss of $14 million or 2 cents per share. First quarter 2009 GAAP results compare to fourth quarter 2008 GAAP net loss of $606 million or 94 cents per share. First quarter 2009 GAAP net loss included a net charge of $86 million from special items, consisting primarily of $42.7 million of amortization of acquisition-related items, $25.2 million in net restructuring and other items and $18 million of stock-based compensation expense.
First quarter 2009 non-GAAP** net loss was $18 million or 3 cents per share, compared to first quarter 2008 non-GAAP net income of $64 million or 10 cents per diluted share. Fourth quarter 2008 non-GAAP net income was $41 million or 6 cents per diluted share.
Cash and short-term investments totaled approximately $1.1 billion at quarter end.
"Despite continued macroeconomic uncertainty, our first quarter revenues were above the midpoint of our guidance range with our storage semiconductor and networking businesses demonstrating strength late in the quarter," said Abhi Talwalkar, LSI president and chief executive officer. "We have also significantly lowered our operating expenses while continuing to invest in key opportunities which position us to grow at above-market rates coming out of the downturn."
Bryon Look, LSI CFO and chief administrative officer, said, "Through a combination of effective cost controls and streamlining actions, operating expenses for the quarter came in below our expected range. Inventory levels were also sequentially down and sharply lower on a year-over-year basis, contributing to our continued balance sheet strength."
LSI Second Quarter 2009 Business Outlook
||$470 million to $530 million
||$470 million to $530 million|
||33 – 37%
||$33 to $40 million
||41 – 43%|
||$245 million to $268 million
||$32 to $45 million
||$213 million to $223 million|
|Net Other Income
||Approximately $6 million
||Approximately $6 million|
|Net (Loss)/Income Per Share
||($0.19) to ($0.09)
||($0.10) to ($0.13)
||($0.06) to $0.01|
|Diluted Share Count
Capital spending is projected to be around $15 million in the second quarter and approximately $50 million in total for 2009.
Depreciation and software amortization is projected to be around $20 million in the second quarter and approximately $90 million in total for 2009.
LSI Conference Call Information
LSI will hold a conference call today at 2 p.m. PDT to discuss first quarter financial results and the second quarter 2009 business outlook. Internet users can access the conference call at http://www.lsi.com/webcast. Subsequent to the conference call, a replay will be available at the same web address.
Forward-Looking Statements: This news release contains forward-looking statements that are based on the current opinions and estimates of management. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause LSI’s actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: our reliance on major customers and suppliers; our ability to keep up with rapid technological change; our ability to compete successfully in competitive markets; our ability to successfully transition the operations of Agere Systems to our enterprise resource planning system; fluctuations in the timing and volumes of customer demand; the unavailability of appropriate levels of manufacturing capacity; and general industry and market conditions. For additional information, see the documents filed by LSI with the Securities and Exchange Commission, and specifically the risk factors set forth in the company’s most recent reports on Form 10-K and 10-Q. LSI disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
LSI Corporation (NYSE: LSI) is a leading provider of innovative silicon, systems and software technologies that enable products, which seamlessly bring people, information and digital content together. The company offers a broad portfolio of capabilities and services including custom and standard product ICs, adapters, systems and software that are trusted by the world's best known brands to power leading solutions in the Storage and Networking markets. More information is available at www.lsi.com
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Q1 2009 Financial Tables (PDF, 24KB)