* 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 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
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
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
Analysts expected second-quarter earnings per share of 17
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