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LSI Corp. Reports Operating Results (10-Q)

May 14, 2009 | About:

LSI Corp. (LSI) filed Quarterly Report for the period ended 2009-04-05.

LSI Corporation is a leading provider of innovative silicon systems and software technologies that enable products that seamlessly bring people information and digital content together. The company offers a broad portfolio of capabilities and services including custom and standard product ICs adapters systems and software that are trusted by the world's best known brands to power leading solutions in the Storage Networking and Consumer markets. LSI Corp. has a market cap of $2.52 billion; its shares were traded at around $3.89 with a P/E ratio of 22.9 and P/S ratio of 2.4.

Highlight of Business Operations:

We reported a net loss of $103.5 million, or $0.16 per diluted share, for the three months ended April 5, 2009, as compared to a net loss of $13.6 million, or $0.02 per diluted share, for the three months ended March 30, 2008. During the three months ended April 5, 2009, we recorded restructuring of operations and other items, net of $25.2 million compared to $4.6 million for the three months ended March 30, 2008.

Cash, cash equivalents and short-term investments were $1,073.8 million as of April 5, 2009, as compared to $1,119.1 million as of December 31, 2008. For the three months ended April 5, 2009, cash used in operating activities was $9.8 million as compared to $96.2 million cash provided by operating activities in the first three months of 2008.

We recorded charges of $25.2 million in restructuring of operations and other items, net, for the three months ended April 5, 2009, consisting of $19.3 million in charges for restructuring of operations and $5.9 million in charges for other items. The $25.2 million of charges were all attributable to the Semiconductor segment.

We recorded charges of $4.6 million in restructuring of operations and other items, net, for the three months ended March 30, 2008, consisting of $3.3 million in charges for restructuring of operations and $1.3 million in charges for other items. The $4.6 million of charges were all attributable to the Semiconductor segment. See Note 3 to our consolidated financial statements in Item 1 for more information about the restructuring charges recorded during the first quarter of 2009.

Other expense, net, increased $0.8 million for the three months ended April 5, 2009 as compared to the three months ended March 30, 2008 primarily as a result of $0.6 million in foreign exchange losses during the first quarter of 2009 as compared to $1.9 million in foreign exchange gains during the first quarter of 2008, offset in part by $1.2 million decrease in charges for points on foreign currency forward contracts and other miscellaneous items.

For the three months ended April 5, 2009, we recorded a reversal of $29.8 million in liabilities, which includes unrecognized tax benefits of $15.7 million and interest and penalties of $14.1 million, determined under FIN 48 due to various statutes of limitations expiring during the period and an increase of $32.9 million, which includes unrecognized tax benefits of $25.0 million and interest and penalties of $7.9 million, as a result of re-measurements of uncertain tax positions taken in prior periods based on new information.

Read the The complete ReportLSI is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Charles Brandes of Brandes Investment, Charles Brandes of Brandes Investment.

Rating: 2.6/5 (5 votes)

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