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Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Skywatcher who wrote (18199)	4/20/1999 11:06:00 PM
From: leigh aulper	Respond to of 25814

SI Logic Has Better-Than-Expected Q1 SAN FRANCISCO (Reuters) - LSI Logic Corp. (NYSE:LSI - news), a maker of specialty computer chips, Tuesday reported first quarter earnings that surpassed Wall Street's expectations, fueled by record revenues and lower operating costs. LSI, which develops system-on-a-chip semiconductors and customized chips for networking, telecommunications and consumer electronics devices, reported first quarter net income of $11 million, or eight cents a share, excluding several extraordinary items, compared with net income of $31.5 million, or 22 cents a share, in the year-ago quarter, also excluding special items. According to First Call, which tracks analysts' estimates, the consensus on Wall Street was for share earnings of five cents. The special items in the first quarter include amortization of good will related to the Milpitas, Calif.-based company's acquisition of Symbios last year, the reversal of restructuring reserves, and a change in accounting principles. Revenues soared 41 percent to a record $457 million, from $325 million in the year-earlier period. The prior year revenues, however, do not include results from Symbios. ''LSI Logic had record bookings in the first quarter,'' said Wilfred Corrigan, LSI Logic's chairman and chief executive, in a statement. ''We achieved sequential revenue growth, lowered operating costs and our backlog continued to build. We clearly have momentum as we head into the second quarter and beyond.'' LSI said that continued acceptance of the Internet was a major driver for all six of the company's market segments during the quarter, including networking, wireless, storage, computing, telecommunications and consumer electronics. Orders increased across the board, excluding the consumer business, which had typical first quarter seasonal slowness. ''Based on the strong orders books in first quarter, we are growing increasingly confident that the company will be able to meet our 1999 and 2000 earnings per share estimates of 75 cents and $1.50, respectively,'' said Erika Klauer, a BT Alex Brown analyst, in a note to clients. ''Visibility is the best the company has seen in two years.'' Net income before the change in accounting principle was $5 million or 3 cents a diluted share. As previously announced, LSI Logic expensed the unamortized preproduction balance of $92 million, net of tax on January 1, 1999 and presented it as a cumulative effect of a change in accounting principle. The change in accounting principle reduced net income per diluted share by 63 cents resulting in a net loss of $87 million or 60 cents a diluted share. First quarter share earnings also reflect a charge of five cents per share for amortization of goodwill and special items. Shares of LSI jumped $3.125 to close at $36 in active trading on the NYSE.