Strong earnings per share and gross margins

SAN JOSE, Calif., April 24, 2013 – LSI Corporation (NASDAQ: LSI) today reported results for its first quarter ended March 31, 2013.

First Quarter 2013 Highlights

  • First quarter 2013 revenues of $569 million
  • First quarter 2013 GAAP* net income of $0.03 per diluted share
  • First quarter 2013 non-GAAP** net income of $0.17 per diluted share
  • First quarter 2013 operating cash flows of $63 million

Second Quarter 2013 Business Outlook

  • Projected revenues of $560 million to $600 million
  • GAAP* net income in the range of ($0.02) to $0.07 per share
  • Non-GAAP**net income in the range of $0.10 to $0.16 per share

* Generally Accepted Accounting Principles.
** Excludes stock-based compensation, amortization of acquisition-related intangibles, purchase accounting effect on inventory, restructuring of operations and other items, net, gain on remeasurement of a pre-acquisition equity interest to fair value, and gain/loss on sale/write-down of investments.  It also excludes the income tax effect associated with the above-mentioned items. 

“LSI achieved strong results and better than expected revenues in the first quarter, despite a challenging environment for PCs and mobile infrastructure investment,” said Abhi Talwalkar, LSI’s president and CEO. “Looking forward, we are very excited about the flash application acceleration market and our Nytro flash adapter solutions continue to gain strong acceptance with customers looking to accelerate Virtual Desktop Infrastructure (VDI), Hadoop and other Big Data applications, as well as with leading cloud based services.”

First quarter 2013 revenues were $569 million, in line with guidance, compared to $622 million in the first quarter of 2012, and compared to $600 million in the fourth quarter of 2012.

First quarter 2013 GAAP* net income was $18 million or $0.03 per diluted share, compared to first quarter 2012 GAAP net income of $75 million or $0.13 per diluted share. Fourth quarter 2012 GAAP net income was $23 million or $0.04 per diluted share. First quarter 2013 GAAP net income included a net charge of $76 million from special items, consisting primarily of approximately $30 million of amortization of acquisition-related items, $26 million of stock-based compensation expense and $20 million of net restructuring and other items.

First quarter 2013 non-GAAP** net income was $94 million or $0.17 per diluted share, compared to first quarter 2012 non-GAAP net income of $117 million or $0.20 per diluted share. Fourth quarter 2012 non-GAAP net income was $101 million or $0.18 per diluted share.

Cash and short-term investments totaled approximately $659 million at quarter end. The company completed first-quarter purchases of approximately 9 million shares of its common stock for approximately $61 million.

“We delivered solid earnings per share, while investing for growth in current and future product areas,” said Bryon Look, LSI’s CFO. “We also generated strong gross margins in Q1, and continue to use our healthy cash position to pursue our stock buyback program.”

LSI 2Q2013 Business Outlook

​​

GAAP*

​​

Special Items

​​

Non-GAAP**

Revenue

$560 million to $600 million

$560 million to $600 million

Gross Margin

48% to 52%

$18 million to $28 million

53% to 55%

Operating Expenses

$260 million to $280 million

$32 million to $42 million

$228 million to $238 million

Net Other Income

​$2 million

$2 million​

Tax

Approximately $8 million

Approximately $8 million​

Net (Loss)/Income Per Share​

($0.02) to $0.07

($0.09) to ($0.12)

$0.10 to $0.16

Diluted Share Count​

565 million​

565 million​

Capital spending is projected to be around $20 million in the second quarter and approximately $85 million in total for 2013.

Depreciation and software amortization is projected to be around $15 million in the second quarter and approximately $60 million in total for 2013.

LSI Conference Call Information

LSI will hold a conference call today at 2 p.m. PDT to discuss first quarter 2013 financial results and the second quarter 2013 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 ability to achieve anticipated synergies and to develop integrated new products following our acquisition of SandForce; our ability to repurchase our common stock at prices we believe to be advantageous; our reliance on major customers and suppliers; our ability to keep up with rapid technological change; our ability to compete successfully in competitive markets; fluctuations in the timing and volumes of customer demand; the unavailability of appropriate levels of manufacturing capacity; and general industry and macro-economic 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.

About LSI

LSI Corporation (NASDAQ: LSI) designs semiconductors and software that accelerate storage and networking in datacenters, mobile networks and client computing. Our technology is the intelligence critical to enhanced application performance, and is applied in solutions created in collaboration with our partners. More information is available at www.lsi.com.

LSI, the LSI & Design logo and Storage.Networking.Accelerated. are trademarks or registered trademarks of LSI Corporation in the United States and/or other countries.

All other brand or product names may be trademarks or registered trademarks of their respective companies.


Q1 2013 Financial Tables PDF, 36KB)