LSI Logic Hits $2B Annual Run Rate In Q2
(07/21/99, 2:14 p.m. ET)
Semiconductor Business News
techweb.com
For the first time in its history, LSI Logic on Wednesday reported revenues exceeding $500 million in a quarter.
During the second quarter, ended June 30, the chip maker posted a 49 percent increase in revenues, to $501 million from $336million in the same period a year ago.
LSI Logic's net income was $9.8 million, including one-time charges related to its $106 million acquisition of Seeq Technology. In the second quarter last year, the company reported a net income of $32.6 million. Excluding the special charges, LSI Logic's net income was $31.2 million in the just-ended quarter.
"LSI Logic is now on a $2 billion annual run rate and we are growing faster than the global semiconductor industry," said Wilfred J. Corrigan, chairman and CEO.
Corrigan credited LSI Logic's Internet-driven strategy for system-on-chip solutions for high-volume markets in high-growth vertical applications.
The second quarter revenues were 8 percent higher than the $464 million reported by LSI Logic in the first quarter. The company said its gross margin improved to 37.2 percent in the second quarter from 34.9 percent in the last.
"We are well on our way to achieving the goals in our financial model," said Doug Norby, executive vice president and chief financial officer at LSI Logic. "Our revenues grew. Our gross margin expanded. Operating expenses fell. Our cash position strengthened."
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