LSI

[Terliso]

Chips Snap: LTX Slips, LSI Logic Jumps
Friday November 17, 3:07 pm ET 
LTX Slips on Weak 2nd-Quarter Forecast, While LSI Shares Surge


NEW YORK (AP) -- Semiconductor stocks edged down Friday, with LTX Corp. taking one of the biggest hits due to disappointing guidance, and LSI Logic Corp. surging on bullish comments from a Wall Street analyst.

LTX Corp., a maker of semiconductor testing equipment, said Thursday it swung to a first-quarter profit, but its second-quarter forecast fell short of Wall Street expectations.

Shares of LTX fell 23 cents, or 4.4 percent, to $4.96 in afternoon trading on the Nasdaq. They have traded between $3.66 and $8 over the past year.

Shares of LSI Logic Corp., a designer of semiconductors used in storage systems, shot up in afternoon trading after Bank of America analyst Sumit Dhanda said the stock is underappreciated by the market, and reiterated a "Buy" rating.

"We believe that Street views on LSI's revenue growth for 2007 are conservative, particularly in light of the growth opportunities set to benefit LSI in coming quarters," Dhanda wrote in a note to investors. "To wit, we now believe that LSI is likely to win some share within Dell's low-end storage system business, which is additive to our consensus revenue assumptions for the year."

LSI shares, which have traded between $7.41 and $11.81 over the last year, were up 45 cents, or 4.3 percent, at $11 in afternoon trading on the New York Stock Exchange.

[wpSoft2008]

Bought LSI this morning to test my trading system

Here is the link
http://www.3stocksonfire.org/trading/index.php?topic=11073.0

[setravis]

MILPITAS, Calif., April 23, 2008 /PRNewswire-FirstCall via COMTEX/ -- LSI Corporation (LSI, Trade) today reported results for its first quarter ended March 30, 2008.


 
                      First Quarter News Release Summary 
     --   First quarter 2008 revenues of $661 million, exceeding guidance 
     --   First quarter 2008 GAAP* net loss of 2 cents per share 
     --   First quarter 2008 non-GAAP** net income of 10 cents per diluted 
          share, exceeding guidance 
     --   First quarter operating cash flows of $96 million 
     --   Cash and short-term investments of $1.2 billion 
                     Second Quarter 2008 Business Outlook 
     --   Projected revenues of $650 million to $680 million 
     --   GAAP* net loss in the range of 0 to 8 cents per share 
     --   Non-GAAP** net income in the range of 8 to 12 cents per diluted 
          share 
     *    Generally Accepted Accounting Principles. 
     **   Excludes goodwill 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 equity securities and acquired in-process research and 
          development. It also excludes the income tax effect associated with 
          the above mentioned items. 
   STRENGTH IN STORAGE SEMICONDUCTORS DRIVES BETTER THAN EXPECTED SEASONAL 
                                 PERFORMANCE 

First quarter 2008 revenues were $661 million, a 42% increase year-over- year compared to $465 million reported in the first quarter of 2007, and down 11% sequentially compared to $741 million reported in the fourth quarter of 2007 [1]. Adjusting for the sale of the mobility business, first quarter revenues declined 7% sequentially compared to the fourth quarter of 2007. The first quarter revenue decline was less than expected on better than expected sales of semiconductors for storage applications.

First quarter 2008 GAAP* net loss was $14 million or 2 cents per share, compared to first quarter 2007 GAAP net income of $30 million or 7 cents per diluted share. First quarter 2008 GAAP results compare to fourth quarter 2007 GAAP net loss of $2 billion or $2.87 per share, which included a $2 billion non-cash charge for impairment of goodwill. First quarter 2008 GAAP net loss included a net charge of $78 million from special items, including $55.7

million of amortization of acquisition-related items, $4.6 million of restructuring costs, and $17.8 million of stock-based compensation expense.

First quarter 2008 non-GAAP** net income was $64 million or 10 cents per diluted share, compared to first quarter 2007 non-GAAP net income of $44 million or 11 cents per diluted share. Fourth quarter 2007 non-GAAP net income was $94 million or 13 cents per diluted share.

Cash and short-term investments totaled approximately $1.2 billion at quarter end. LSI also announced today that it has completed the purchase of approximately 147 million shares of its common stock for approximately $1 billion under two repurchase authorizations.

"Our first quarter results mark the third consecutive quarter of revenues that have exceeded expectations and reflect continuing strength in our core business," said Abhi Talwalkar, LSI president and chief executive officer. "Stronger than expected sales of our SAS and SAN silicon partially offset the effects of normal seasonality while the longer-term benefits of our strategic steps and sharp focus on storage and networking continued to grow."

"During the quarter we also won significant new silicon designs in the hard disk drive and server spaces and announced an innovative new family of single-chip, low-cost content inspection processors for security and networking applications which is receiving strong interest," added Talwalkar.

Bryon Look, LSI chief financial officer, said, "In the first quarter we continued to generate strong operating cash flows and effectively managed our expenses, delivering a solid financial performance. Our balance sheet remains strong and despite continuing macro-economic uncertainty we remain confident in the health of our business."


 
     [1]  The Company merged with Agere Systems on April 2, 2007. 
                   LSI Second Quarter 2008 Business Outlook 
                        GAAP*        Special Items       Non-GAAP** 
    Revenue          $650 million                      $650 million to $680 
                       to $680                             million 
                      million 
    Gross Margin      37 - 40%     $45 to $55 million      45 - 47% 
    Operating        $270 million  $35 to $45 million  $235 million to $245 
    Expenses           to $290                             million 
                       million 
    Net Other Income $0 million                           $0 million 
    Tax              Approximately                      Approximately 8% 
                      $8 million 
    Net (Loss)/Income ($0.08) to   ($0.12) to ($0.17)  $0.08 to $0.12 
    Per Share         ($0.00) 
    Diluted Share 
     Count            640 million                         645 million 

Capital spending is projected to be around $15 million in the second quarter and approximately $60 million in total for 2008.

Second quarter depreciation and software amortization is expected to be approximately $25 million.

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 2008 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: timely completion of our planned acquisition of the hard disk drive semiconductor business of Infineon Technologies AG; 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; our ability to successfully and timely transition our assembly and test operations to third parties; 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 report on Form 10-K. 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 (LSI, Trade) 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 http://www.lsi.com.


 
    Editor's Notes: 
     1.   All LSI news releases (financial, acquisitions, manufacturing, 
          products, technology etc.) are issued exclusively by PR Newswire and 
          are immediately thereafter posted on the company's external website, 
          http://www.lsi.com. 
     2.   The LSI logo design is a trademark of LSI Corporation. 
     3.   All other brand or product names may be trademarks or registered 
          trademarks of their respective companies. 
                               LSI CORPORATION 
                    Condensed Consolidated Balance Sheets 
                                (In millions) 
                                 (Unaudited) 
                                           March 30,  December 31,  April 1, 
    Assets                                    2008        2007        2007 
    Current assets: 
        Cash and short-term investments     $1,236.8    $1,397.6    $1,016.6 
        Accounts receivable, net               332.1       406.4       303.4 
        Inventories                            258.6       240.8       229.1 
        Prepaid expenses and other 
         current assets                        158.6       147.8        62.3 
            Total current assets             1,986.1     2,192.6     1,611.4 
    Property and equipment, net                235.2       229.7        89.2 
    Goodwill and other intangible assets, 
     net                                     1,665.9     1,724.7       997.8 
    Other assets                               252.5       249.4       103.4 
            Total assets                    $4,139.7    $4,396.4    $2,801.8 
    Liabilities and Stockholders' Equity 
    Current liabilities                       $729.0      $762.5      $383.7 
    Long-term debt                             717.2       718.0       350.0 
    Pension, tax and other liabilities         407.0       430.7       131.5 
            Total liabilities                1,853.2     1,911.2       865.2 
    Minority interest in subsidiary              0.3         0.2         0.2 
    Stockholders' equity: 
        Common stock and additional paid- 
         in capital                          5,959.2     6,159.2     3,121.0 
        Accumulated deficit                 (3,752.1)   (3,738.5)   (1,198.1) 
        Accumulated other comprehensive 
         income                                 79.1        64.3        13.5 
            Total stockholders' equity       2,286.2     2,485.0     1,936.4 
            Total liabilities and 
             stockholders' equity           $4,139.7    $4,396.4    $2,801.8 
                               LSI CORPORATION 
                 Consolidated Statements of Operations (GAAP) 
                   (In thousands, except per share amounts) 
                                 (Unaudited) 
                                                  Three Months Ended 
                                           March 30,  December 31,  April 1, 
                                             2008         2007        2007 
    Revenues                               $660,747      $740,874   $465,415 
        Cost of revenues                    356,878       394,730    263,670 
        Amortization of acquisition 
         related intangibles                 42,255        33,842      5,285 
        Stock-based compensation expense      2,061         2,795      1,944 
           Total cost of revenues           401,194       431,367    270,899 
    Gross profit                            259,553       309,507    194,516 
        Research and development            161,894       158,021     99,130 
        Stock-based compensation expense      7,823         9,132      4,717 
           Total research and development   169,717       167,153    103,847 
        Selling, general and 
         administrative                      77,708        86,158     57,087 
        Amortization of acquisition 
         related intangibles                 13,434         4,752          - 
        Stock-based compensation expense      7,911         9,568      4,523 
           Total selling, general and 
            administrative                   99,053       100,478     61,610 
        Restructuring of operations and 
         other items, net                     4,564        29,050     (8,080) 
        Goodwill and intangible 
         impairment charges*                      -     2,021,463          - 
        Acquired in-process research and 
         development                              -         5,972      6,500 
    (Loss)/income from operations           (13,781)   (2,014,609)    30,639 
        Interest expense                     (8,978)       (9,048)    (3,890) 
        Interest income and other, net       14,631        13,629     10,531 
    (Loss)/income before income taxes        (8,128)   (2,010,028)    37,280 
    Provision/(benefit) for income taxes      5,500       (11,830)     7,456 
    Net (loss)/income                      $(13,628)  $(1,998,198)   $29,824 
    Net (loss)/income per share: 
        Basic                                $(0.02)       $(2.87)     $0.07 
        Diluted                              $(0.02)       $(2.87)     $0.07 
    Shares used in computing per share 
     amounts: 
        Basic                               661,984       695,624    404,230 
        Diluted                             661,984       695,624    409,808 
     *    During the fourth quarter of 2007, the Company determined that based 
          on the then market conditions in the semiconductor industry, the 
          carrying amount of the Company's goodwill was no longer recoverable. 
          The Company recognized $2,019.9 million of a goodwill impairment 
          charge and $1.6 million in charges for the impairment of certain 
          amortizable intangible assets in the Semiconductor segment. 

A reconciliation of net (loss)/income on a GAAP basis to a non-GAAP net income is included below.


 
                                                 Three Months Ended 
    Reconciliation of GAAP net 
     (loss)/income to Non-GAAP net         March 30,   December 31, April 1, 
     income:                                 2008          2007       2007 
    GAAP net (loss)/income                 $(13,628)  $(1,998,198)  $29,824 
    Special items: 
    a)   Stock-based compensation expense 
     - cost of revenues                       2,061         2,795     1,944 
    b)   Stock-based compensation expense 
     - R&D                                    7,823         9,132     4,717 
    c)   Stock-based compensation expense 
     - SG&A                                   7,911         9,568     4,523 
    d)   Amortization of acquisition 
     related intangibles - cost of 
     revenues                                42,255        33,842     5,285 
    e)   Amortization of acquisition 
     related intangibles - SG&A              13,434         4,752         - 
    f)   Restructuring of operations and 
     other items, net                         4,564        29,050    (8,080) 
    g)   Goodwill and intangible 
     impairment charges*                          -     2,021,463         - 
    h)   Acquired in-process research and 
     development                                  -         5,972     6,500 
    i)   Income tax effect                      (94)      (24,158)     (369) 
            Total special items              77,954     2,092,416    14,520 
    Non-GAAP net income                     $64,326       $94,218   $44,344 
    Non-GAAP net income per share: 
        Basic                                 $0.10         $0.14     $0.11 
        Diluted**                             $0.10         $0.13     $0.11 
    Shares used in computing Non-GAAP per 
     share amounts: 
        Basic                               661,984       695,624   404,230 
        Diluted                             662,485       726,710   409,808 
     **   In computing non-GAAP diluted earnings per share for the three month 
          period ended December 31, 2007, net income was increased by $3,500 
          for interest, net of taxes, on the $350 million convertible notes 
          considered dilutive common stock equivalents. 
                                                 Three Months Ended 
    Reconciliation of GAAP to Non-GAAP 
     shares used in the calculation of     March 30,  December 31,  April 1, 
    diluted per share amounts:                2008          2007      2007 
    Diluted shares used in per-share 
     calculation  - GAAP                    661,984       695,624   409,808 
    Dilutive stock awards                       501         5,006         - 
    Effect of $350 million convertible 
     notes considered dilutive                    -        26,080         - 
    Diluted shares used in per-share 
     calculation - Non-GAAP                 662,485       726,710   409,808 
                               LSI CORPORATION 
                     Consolidated Statement of Cash Flows 
                      (In thousands, except where noted) 
                                 (Unaudited) 
                                                  Three Months Ended 
                                            March 30,   December 31,  April 1, 
                                              2008         2007        2007 
    Operating Activities: 
    Net (loss)/income                       $(13,628)  $(1,998,198)   $29,824 
    Adjustments: 
        Depreciation and amortization *       78,328        61,822     18,576 
        Stock-based compensation expense      17,795        21,495     11,184 
        Non-cash restructuring and other 
         items                                (3,291)       10,555        228 
        Goodwill and intangible 
         impairment charges **                     -     2,021,463          - 
        Acquired in-process research and 
         development                               -         5,972      6,500 
        (Gain)/loss on sale of property 
         and equipment, including assets 
         held-for-sale                           (12)          114     (9,662) 
        Non-cash foreign exchange loss        12,918           986        389 
        Changes in deferred tax assets 
         and liabilities                       2,115         3,178         31 
        Changes in assets and 
         liabilities, net of assets 
         acquired and liabilities 
            assumed in business 
             combinations: 
            Accounts receivable, net          74,272        30,964     45,450 
            Inventories                      (17,719)      (20,440)   (19,654) 
            Prepaid expenses and other 
             assets                           (4,317)      (13,504)    24,565 
            Accounts payable                 (39,432)       95,459    (36,469) 
            Accrued and other liabilities    (10,828)     (109,543)   (14,980) 
    Net cash provided by operating 
     activities                               96,201       110,323     55,982 
    Investing activities: 
        Purchases of debt securities 
         available-for-sale                  (44,151)     (149,320)   (60,630) 
        Proceeds from maturities and 
         sales of debt securities 
         available-for-sale                   50,904       123,195    174,392 
        Purchases of equity securities        (3,500)            -          - 
        Purchases of property, equipment 
         and software                        (35,230)      (25,837)   (20,503) 
        Proceeds from sale of property 
         and equipment                         6,333         2,376     12,511 
        Proceeds from sale of Mobility 
         Products Group, 
            net of transaction costs               -       445,500          - 
        Proceeds from sale of 
         semiconductor operations in 
         Thailand, 
            net of transaction costs               -        49,600          - 
        Acquisitions of companies, net of 
         cash acquired                             -       (80,751)   (52,079) 
        Adjustment to goodwill acquired 
         in a prior year for 
         resolution of a pre-acquisition 
         income tax contingency                4,821           788      2,442 
    Net cash (used in)/provided by 
     investing activities                    (20,823)      365,551     56,133 
    Financing activities: 
       Issuance of common stock                  346        17,286      5,671 
       Purchase of common stock under 
        repurchase programs                 (229,231)     (221,639)         - 
    Net cash (used in)/provided by 
     financing activities                   (228,885)     (204,353)     5,671 
    Effect of exchange rate changes on 
     cash and cash equivalents                 1,816           115        (65) 
    (Decrease)/increase in cash and cash 
     equivalents                            (151,691)      271,636    117,721 
    Cash and cash equivalents at 
     beginning of period                   1,021,569       749,933    327,800 
    Cash and cash equivalents at end of 
     period                                 $869,878    $1,021,569   $445,521 
     *    Depreciation of fixed assets and amortization of intangible assets, 
          software, capitalized intellectual property, debt issuance costs and 
          accrued debt premium. 
     **   During the fourth quarter of 2007, the Company determined that based 
          on the then market conditions in the semiconductor industry, the 
          carrying amount of the Company's goodwill was no longer recoverable. 
          The Company recognized $2,019.9 million of a goodwill impairment 
          charge and $1.6 million in charges for the impairment of certain 
          amortizable intangible assets in the Semiconductor segment. 
                               LSI CORPORATION 
                    Selected Financial Information (GAAP) 
                      (In millions, except where noted) 
                                 (Unaudited) 
                                                  Three Months Ended 
                                            March 30,  December 31,  April 1, 
                                               2008        2007        2007 
        Semiconductor revenues                $458.8      $491.7      $272.4 
        Storage Systems revenues              $201.9      $249.2      $193.0 
        Total revenues                        $660.7      $740.9      $465.4 
        Percentage change in revenues- 
         qtr./qtr. ( a )                      -10.8%        1.9%      -11.1% 
        Percentage change in revenues- 
         yr./yr. ( b )                         42.0%       41.5%       -2.2% 
        Days sales outstanding                    45          49          59 
        Days of inventory                         58          50          76 
        Current ratio                            2.7         2.9         4.2 
        Quick ratio                              2.2         2.4         3.4 
        Gross margin as a percentage of 
         revenues                              39.3%       41.8%       41.8% 
        R&D as a percentage of revenues        25.7%       22.6%       22.3% 
        SG&A as a percentage of revenues       15.0%       13.6%       13.2% 
        Employees  ( c )                       5,351       6,193       4,082 
        Revenues per employee (in 
         thousands) ( d )                     $493.9      $478.5      $456.1 
        Selected Cash Flow information: 
        Purchases of property and 
         equipment ( e )                       $21.1       $13.6       $14.4 
        Depreciation and amortization ( f )    $21.9       $21.9       $11.0 
     ( a )     Represents sequential quarter growth in revenues. 
     ( b )     Represents growth in revenues in the quarter presented as 
               compared to the same quarter of the previous year. 
     ( c )     Actual number of employees at the end of each period presented. 
     ( d )     Revenues per employee is calculated by annualizing revenues for 
               each quarter presented and dividing it by the number of 
               employees. 
     ( e )     Excludes purchases of software. 
     ( f )     Represents depreciation of fixed assets and amortization of 
               software. 
                               LSI CORPORATION 
                 Reconciliations of Non-GAAP to GAAP measures 
                                (In thousands) 
                                 (Unaudited) 
                                                  Three Months Ended 
                                             March 30, 2008  December 31, 2007 
    Consolidated revenues                        $660,747          $740,874 
    Mobility revenues                                 -              29,202 
    Consolidated revenues excluding 
     Mobility                                    $660,747          $711,672 
    % change in revenues Qtr./Qtr.                     -7% 

SOURCE LSI Corporation



http://www.lsi.com 

Copyright (C) 2008 PR Newswire. All rights reserved

[wpSoft2008]

Hi, setravis:

No need to put so much known info on this thread. You need to make money from your own DD.

This stock was in my test run as seen in my previous post.

I bought 20K two days ago once more at $4.86 and I knew that the stock will be above $5.6 after earning report. I already mode more than 50k on this stock alone in last 2 months.

LSI earned 0.07 last quarter and the stock jumped from 4->5.5 and has been in 5-5.5 for two months.

Any price under 5 is a bargin.

If you looked at its chart, the low since 1995 has been $4. Whenever it touched 4, it will double within one year.

The chart pattern is similar to 2004 10 - 2005 2.  After jumped from 4 -> 5.70, that stock had been in 5 - 5.50 then broke out to go to 6.5. Then pulled back to 6 and up to 11 eventually.

That is the reason why I bought it on its weakness.