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LSI Corp. Reports Operating Results (10-Q)

August 09, 2012 | About:
10qk

10qk

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LSI Corp. (LSI) filed Quarterly Report for the period ended 2012-07-01.

Lsi Corporation has a market cap of $4.15 billion; its shares were traded at around $7.595 with a P/E ratio of 12.6 and P/S ratio of 2. Lsi Corporation had an annual average earning growth of 2.2% over the past 5 years.

Highlight of Business Operations:

During the second quarter of 2012, we reported revenues of $659.6 million, compared to $500.6 million for the second quarter of 2011. For the six months ended July 1, 2012, we reported revenues of $1,282.0 million, compared to $973.9 million for the six months ended July 3, 2011. For the second quarter of 2012, we reported net income of $58.7 million, or $0.10 per diluted share, compared to $293.8 million, or $0.48 per diluted share, for the second quarter of 2011. Net income for the second quarter of 2011 included a $260.1 million gain on the sale of our external storage systems business. For the six months ended July 1, 2012, we reported net income of $133.9 million, or $0.23 per diluted share, compared to $303.9 million, or $0.49 per diluted share, for the six months ended July 3, 2011.

Revenues increased by $159.0 million, or 31.8%, and by $308.1 million, or 31.6%, respectively, for the three and six months ended July 1, 2012 as compared to the three and six months ended July 3, 2011. The increases were primarily attributable to higher unit sales of semiconductors used in storage applications, such as hard disk drives as that industry recovered from the flooding in Thailand in late 2011 and the ramping of new products to existing customers. The increases were also due to higher unit sales of flash storage processors as a result of the acquisition of SandForce. The increases were offset by decreases in unit sales of semiconductors used in older networking product applications.

Revenues in North America and Asia increased by $31.6 million, or 25.7%, and $133.7 million, or 40.5%, respectively, for the three months ended July 1, 2012 as compared to the three months ended July 3, 2011. Revenues in North America and Asia increased by $69.6 million, or 28.5%, and $245.0 million, or 38.7%, respectively, for the six months ended July 1, 2012 as compared to the six months ended July 3, 2011. The increases were primarily attributable to higher unit sales of semiconductors used in storage product applications and higher unit sales of flash storage processors as a result of the acquisition of SandForce. The increases were offset by decreases in unit sales of semiconductors used in older networking product applications.

Revenues from storage products increased by $175.8 million, or 49.0%, and by $327.9 million, or 47.2%, respectively, for the three and six months ended July 1, 2012 as compared to the three and six months ended July 3, 2011. The increases were primarily attributable to higher unit sales of semiconductors used in hard disk drives as that industry recovered from the flooding in Thailand in late 2011 and the ramping of new products to existing customers. The increases were also the result of higher unit sales of flash storage processors as a result of the acquisition of SandForce.

SG&A expense increased by $17.1 million, or 23.8%, for the three months ended July 1, 2012 as compared to the three months ended July 3, 2011. The increase was primarily attributable to higher compensation related expense, which includes stock-based compensation, resulting from headcount additions associated with the acquisition of SandForce and headcount additions to support revenue growth, along with higher performance-based compensation expense as a result of improved financial performance. As a percentage of revenues, SG&A expense declined from 14.3% in the second quarter of 2011 to 13.5% in the second quarter of 2012 as a result of higher revenues for the second quarter of 2012 as compared to the same period in 2011.

Read the The complete Report

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