LSI To Purchase AMCC 3ware RAID Adapter Business

Combination to create best-in-class portfolio of host-bus RAID adapter solutions for distributors and system builders

 

MILPITAS, Calif., April 6, 2009 – LSI Corporation (NYSE: LSI) today announced that it has signed a definitive agreement to acquire the assets and certain associated intellectual property of the 3ware® RAID adapter business of Applied Micro Circuits Corporation (NASDAQ: AMCC) for approximately $20 million in cash.

3ware products include SAS and SATA RAID adapters designed to offer cost-effective, high-performance, high-capacity storage solutions for a broad range of applications. 3ware adapters are sold to end users through a worldwide network of channel partners including leading storage distributors and system builders.

"The indirect channel plays an important role in delivering today’s increasingly capable, yet often complex storage solutions to customers of all sizes," said Abhi Talwalkar, LSI president and chief executive officer. "The addition of the 3ware business to the LSI storage portfolio uniquely positions us to provide an unmatched breadth of rich storage solutions coupled with the outstanding channel support needed to help channel partners maximize their effectiveness."

The transaction is expected to close within thirty days and is subject to satisfaction of customary closing conditions. Upon closing, the 3ware business will be integrated into the LSI Engenio Storage Group.

LSI expects the acquisition to be neutral to non-GAAP* earnings per share in 2009. The company expects to provide further details in April when it reports first quarter results.

* GAAP refers to Generally Accepted Accounting Principles. Non-GAAP earnings per share exclude goodwill and other intangible asset impairment, stock-based compensation, amortization of acquisition-related intangibles, restructuring of operations and other items, net, purchase accounting effect on inventory, 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.

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: the successful consummation of the transaction announced above; our ability to successfully integrate and manage the 3ware business; 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 achieve anticipated synergies following our acquisition of Agere Systems; 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.

 

About LSI

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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