LSI Logic Reports 2001 Second Quarter Financial Results
The LSI Logic 2001 second quarter news release follows this summary:
- Second Quarter Revenues of $465 million.
- Net EBG* loss of $20.9 million.
- Diluted per share EBG loss of 6 cents, compared to First Call consensus
estimate of loss of 7cents.
- Cash and short-term investments increased $82 million to $1.14 billion.
* Earnings before goodwill amortization and other special items.
LSI Logic Prepares for Resumption of Growth;
Reduces Costs in Response to Global Semiconductor Industry Downturn
Milpitas, California – LSI Logic Corporation (NYSE: LSI) today reported
2001 second quarter revenues of $465 million, a 10 percent decrease from
the $517 million reported in the first quarter, and 28 percent lower than
the $644 million recorded in the second quarter of 2000.
The second quarter 2001 net loss, before amortization of goodwill and other
special items (EBG), was $20.9 million or minus 6 cents a diluted share,
compared to first quarter net income of $9.5 million or 3 cents a diluted
share, and second quarter 2000 net income of $98 million or 29 cents a
diluted share. Cash and short-term investments increased $82 million to
$1.14 billion.
“Our second quarter financial results reflected the continuation of the
widespread inventory correction in the supply chain and weakened end-demand
in global communications and storage markets,” said Wilfred J. Corrigan,
LSI Logic chairman and chief executive officer. “We expect our business to
bottom in the third quarter and anticipate revenue growth in the fourth
quarter.”
“During the second quarter, we completed the strategic acquisition of
consumer-products leader C-Cube and announced the purchase of AMI’s RAID
business to expand our customer offerings in the storage components space.
We announced the closure of our Colorado Springs manufacturing facility and
took further steps to align our costs to the current business climate. We
are prepared to be an even stronger competitor in our targeted vertical
markets when the industry rebounds in 2002.”
Bryon Look, LSI Logic executive vice president and chief financial officer,
said the company is taking approximately $292 million in charges, net of
taxes. These charges include: in-process research and development,
amortization of intangibles and non-cash deferred stock compensation,
additional excess inventory, restructuring of operations and other
non-recurring and special items resulting from the C-Cube transaction,
earlier acquisitions, the closure of the Colorado Springs manufacturing
facility and a recent reduction in force.
“LSI Logic has taken necessary prudent actions in direct response to the
global semiconductor industry downturn,” said Look. “We believe our
cost-containment actions, our strategic acquisitions and our advanced
technology development efforts put LSI Logic in a strong position to
capitalize on the eventual resumption of growth, driven by the
communications, consumer and storage markets.”
LSI Logic Business Outlook
LSI Logic expects 2001 Q3 revenues to decline approximately 10-15 percent
sequentially from the $465 million reported in the second quarter.
The company anticipates reporting a third quarter loss of about 31 cents a
diluted share on an EBG basis and a gross margin of approximately 30-32
percent, reflecting a simultaneous bottoming in both revenues and factory
utilization.
The company does not anticipate selling any equity investments in the third
quarter.
The 2001 tax rate is expected to be 0 percent.
Capital spending for 2001 is anticipated to be approximately $400 million.
Third quarter depreciation is projected to be about $83 million.
The third quarter diluted common share count will be approximately 365
million.
NOTE: The company’s financial guidance will be limited to the comments made
on today’s public conference call and contained in the Business Outlook
section of this news release. The company assumes no obligation to update
the information contained in this news release.
LSI Logic Announcements
· LSI Logic completed its $844 million purchase of C-Cube Microsystems Inc.
(Nasdaq: CUBE), a strategic acquisition that combines the product lines,
sales channels and technology development strengths of two consumer and
communications market leaders.
lsilogic.com
· LSI Logic and American Megatrends, Inc. announced an agreement in which
LSI Logic will acquire AMI’s RAID (Redundant Array of Independent Disks)
business, engineering teams and technology in order to expand LSI Logic’s
storage solution offerings.
lsilogic.com
· LSI Logic announced the immediate availability of the LiquidLogicÔ core,
an embedded programmable logic technology that can be used in both ASIC and
standard product system-on-a-chip designs.
lsilogic.com
· LSI Logic added two new high-performance, industry-standard
microprocessor cores from MIPS Technologies, Inc. for leading-edge
customers in the broadband, networking, printing, storage and
digital-consumer markets.
lsilogic.com
· LSI Logic announced the commercial availability of the company’s Ultra320
SCSI controller, which can be incorporated into enterprise class servers,
RAID in storage networking environments and high performance workstations.
lsilogic.com
· LSI Logic Storage Systems, Inc. announced ContinuStorÔ Director, a system
enabling storage administrators to increase storage capacity while managing
up to 60 percent greater storage efficiency within a heterogeneous
computing environment from a single administrative interface.
lsilogic.com
· LSI Logic Storage Systems, Inc. announced TotalNet Advanced Server 6.1
for the next generation enterprise server environment enabling desktop
computers and servers to securely share files, printers and other
resources.
lsilogic.com
· LSI Logic announced the industry's first successful validation of
Ultra320 SCSI interoperability and packetized protocol in collaboration
with leading disk drive makers IBM, Quantum (now Maxtor) and Seagate.
lsilogic.com
· LSI Logic introduced its newest packaging innovation, flxI/OÔ flip chip
for high-performance products in the communications and storage markets.
The new packaging technology offers ASIC and system-on-a-chip designers
improvements in signal I/O density, electrical performance and significant
reductions in die sizes.
lsilogic.com
· ARM licensed LSI Logic its newest embedded RISC microprocessor core
(ARM926EJ-SÔ), featuring a Memory Management Unit and dedicated hardware
support for JavaÔ for customers in global communications and storage
markets.
lsilogic.com
· LSI Logic and ANT Limited announced the availability of LSI Logic’s
software development platform for the SC2000 digital set-top box chip
featuring ANT’s embedded FrescoÔ browser.
lsilogic.com
LSI Logic Conference Call Information: LSI Logic will hold a conference
call today at 2 p.m. PDT to discuss second quarter financial results. The
access number is 1-212-896-6011. The call will be webcast real time through
www.StreetFusion.com. A replay of the call will be available today at
approximately 5 p.m. PDT and will be available for 48 hours. The number is
1-800-633-8284, (1-858-812-6440, international) access code 19229111. The
replay will also be available over the Internet at the StreetFusion
website. The StreetFusion replay will be available until August 2. |
