Earnings in:
LSI Logic Reports Record Q3 Revenues and Profits
- Third Quarter 2000 Highlights -
The LSI Logic 2000 Third Quarter News Release Follows this Summary:
- Record Q3 revenues of $728 million; up 13 percent sequentially from Q2.
- Eleventh quarter of sequential revenue growth.
- Per share EBG* was 33 cents; First Call consensus estimate, 32 cents.
- Record Q3 EBG net income of $114 million, more than double (108 percent) the Q3 1999 EBG net income of $55 million.
- Cash and short-term investments grew by $142 million to $1.1 billion.
- Record Q3 bookings.
- Earnings before goodwill amortization and special items.
Fast Growing Communications Markets Drive Record LSI Logic Revenues And Bookings
Communications Represents More Than 50 Percent of LSI Logic Revenues; Cash And Short-Term Investments Exceed $1 Billion for First Time
MILPITAS, Calif., Oct. 24 /PRNewswire/ -- LSI Logic Corporation (NYSE: LSI - news) today reported record 2000 third quarter revenues of $728 million, a 13 percent sequential increase over the second quarter and a 35 percent increase over the $540 million posted in the third quarter of 1999.
Net income before amortization of goodwill and other special items was $114 million or 33 cents a diluted share, compared to $55 million or 17 cents a diluted share in the third quarter of 1999. The third quarter diluted share figures have been adjusted to reflect last February's two-for-one common stock split.
The improvement in profits stems from higher revenues and gross margin expansion. The company's gross margin improved for the sixth consecutive quarter to 43.3 percent. Cash and short-term investments exceeded $1 billion for the first time, growing by $142 million to $1.1 billion. During the third quarter, LSI Logic spent $49 million to purchase 1.5 million shares of the company's common stock.
``We have strong momentum heading into 2001 based upon our communications focus, record bookings and expanded manufacturing capacity,'' said Wilfred J. Corrigan, LSI Logic chairman and chief executive officer.
``Communications chip sales now represent more than 50 percent of LSI Logic's total revenues,'' said John Daane, LSI Logic executive vice president of the Communications Products Group. ``The company anticipates that communications chip revenues will grow 65 percent or more this year.''
LSI Logic Business Outlook
LSI Logic expects 2000 Q4 revenue to be up approximately 10 percent sequentially from the $728 million reported in the third quarter.
The company anticipates reporting fourth quarter earnings of 36 cents a diluted share.
Gross margin is expected to be approximately 44 percent in the fourth quarter.
Recurring investment income will be around $15 million in the fourth quarter, approximately the same amount as realized in the second and third quarters.
The fourth quarter tax rate is expected to be 25 percent.
Capital spending for 2000 is anticipated to be approximately $600 million.
Fourth quarter depreciation is projected to be approximately $90 million.
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