UPDATE 2-LSI quarterly revenue beats expectations

Thu Jul 26, 2012 2:28am IST

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* 2nd-qtr revenue $660 mln vs $644 mln expected by Street

* Quarterly EPS 10 cents

* Stock up in after-hours trade

By Noel Randewich

July 25 (Reuters) - Chipmaker LSI posted second-quarter revenue above expectations and forecast current-quarter revenue flat to lower as slow PC sales hurt demand for storage controllers.

Sales of personal computers have been hit by a shaky global economy and the consumer shift toward tablets and smartphones.

LSI makes controllers for hard-drive maker Seagate, which this month warned its June quarter revenue would miss its prior forecast due to lower shipments, worsened by a quality issue at one of its suppliers.

"There were drives built that didn't get fully consumed. As a result we're going to see a one-quarter adjustment in our component shipments in Q3," Chief Executive Abhi Talwalkar told Reuters.

LSI gets around a third of its revenue from selling chips used in hard drives. It also sells solid-state drives, networking and enterprise servers and storage.

The company posted second-quarter revenue from continuing operations of $660 million, compared with $501 million in the year-ago quarter.

The company estimated current-quarter revenue would be between $620 million and $660 million.

Analysts were expecting revenue of $644 million for the second quarter and $657 million for the current quarter, according to Thomson Reuters I/B/E/S.

Second-quarter net income from continuing operations rose to $59 million, or 10 cents a share, from $28 million, or 5 cents a share, in the same quarter last year.

Second-quarter non-GAAP net income from continuing operations was 21 cents per share. It said non-GAAP earnings per share in the third quarter would be between 14 cents and 20 cents.

Analysts expected second-quarter earnings per share of 17 cents.

LSI's stock rose 2.4 percent to $6.20 in extended trade, after closing up 2.36 percent at $6.07 on the New York Stock Exchange.

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