More: LSI Has 4th-Qtr Profit on 38% Increase in Revenue
Milpitas, California, Jan. 28 (Bloomberg) -- LSI Logic Corp., a maker
of specialty semiconductors, posted a fourth-quarter profit, beating
estimates, as expanding Internet usage boosted sales of its products
used by telecommunications and networking companies.
Profit before a gain and a writedown fell 92 percent, to $7.8 million,
or 5 cents a share, from profit before an accounting change of $32.2
million, or 23 cents, in the year-ago quarter. LSI, which also makes
chips for Sony Corp.'s PlayStation video-game system. was expected to
lose 3 cents a share, the average estimate of analysts surveyed by
First Call Corp.
Milpitas, California-based LSI and other chipmakers struggled for most
of last year with a worldwide slowdown in demand, as over-capacity and
falling prices cut into profits. LSI in October said it would cut about
1,200 workers and close plants to become profitable. Fourth-quarter
revenue rose 38 percent to $445.4 million from $323 million.
''They have cut their workforce and restructured and were
helped by demand in computers and telecommunication growth,''
said Hans Mosesmann, a Prudential Securities Inc. analyst, who
boosted his LSI rating Monday to ''strong buy'' from ''hold.''
After a $12.5 million gain on the sale of an investment and a $7.2
million write down of goodwill in connection with acquiring Symbios
Inc., the company had fourth-quarter net income of $13.1 million, or 9
cents a share. Its year-earlier net was $30.7 million, or 22 cents,
including a $1.44 million loss from a change in accounting principle.
''Clearly, their future is getting better,'' said
Mark Edelstone, a Morgan Stanley Dean Witter analyst who
rates LSI a ''market outperform.''
LSI rose 1 1/2 to 24 3/4. Earnings were released after the close of
U.S. markets. Its shares have gained about 54 percent this month.
Ian, THAT was the BEST sell you never made!
o~~~ O |
