LSI Lowers First-Quarter Outlook, Citing Bloated Customer Inventories
A WSJ.COM News Roundup
LSI Logic Corp. slashed its first-quarter earnings guidance, citing the adverse economic climate and widespread inventory corrections in the communications and storage markets.
LSI said Monday it expects to earn three cents a share for the first quarter, which is well below analysts' and previous estimates of 21 cents a share, according to First Call/Thomson Financial.
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The semiconductor maker also expects to report a 30% revenue reduction sequentially from the $751 million revenue posted in the fourth quarter. Previously, the company expected revenue to drop 12%.
LSI, Milpitas, Calif., earned $2.98 million, or 29 cents a diluted share on revenue of $52.3 million in the first quarter ended Sept. 30. The company said it earned 26 cents a share, before goodwill amortization and special items.
The company said it started a cost-cutting project to align its operating expenses with this latest revenue projection.
LSI rival Vitesse Semiconductor Corp. also reduced its guidance for its second quarter. Vitesse, Camarillo, Calif., also blamed continued weakness in the communications and data-storage markets for its profit warning.
Vitesse lowered its fiscal second-quarter guidance to between 21 cents and 22 cents a share from 26 cents to 27 cents a share, because of continued weakness in its communications and data-storage markets. The company expects second-quarter revenue of $150 million to $160 million, rather than the $180 million to $190 million previously expected. Its quarter ends March 31. |
