UPDATE 2-LSI quarterly revenue beats expectations
* 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.
- Tweet this
- Share this
- Digg this
- UPDATE 3-Pizza chain Sbarro files for bankruptcy protection
- Rupee hits 7-month high as custodian banks sell dollars
- U.S. top court declines to hear 'I (heart sign) boobies' case
- Ten countries scour sea for Malaysia jet lost in "unprecedented mystery"
- UPDATE 3-China steel futures hit record lows, spot iron plunges