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LSI Corp. Reports Operating Results (10-Q)

November 10, 2009 | About:
10qk

10qk

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LSI Corp. (LSI) filed Quarterly Report for the period ended 2009-10-04.

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 $3.56 billion; its shares were traded at around $5.46 with a P/E ratio of 182 and P/S ratio of 3.3.

Highlight of Business Operations:

Our revenues for the three months ended October 4, 2009 were $578.4 million, a decrease of $135.9 million as compared to $714.3 million for the three months ended September 28, 2008. Our revenues for the nine months ended October 4, 2009 were $1,581.4 million, a decrease of $485.7 million compared to $2,067.1 million for the nine months ended September 28, 2008. These decreases resulted primarily from the global economic downturn and the resulting lower end-market demand for semiconductors used in storage and networking product applications and lower demand for our mid-range storage systems.

We reported net income of $52.5 million, or $0.08 per diluted share, for the three months ended October 4, 2009 as compared to net income of $11.4 million, or $0.02 per diluted share, for the three months ended September 28, 2008. During the three months ended October 4, 2009, we recorded a $65.2 million net income tax benefit, or $0.10 per diluted share, which primarily related to a settlement of a multi-year foreign tax audit. We reported a net loss of $112.5 million, or $0.17 per diluted share, for the nine months ended October 4, 2009 as compared to a net loss of $15.9 million, or $0.02 per diluted share, for the nine months ended September 28, 2008.

Cash, cash equivalents and short-term investments were $907.1 million as of October 4, 2009, as compared to $1,119.1 million as of December 31, 2008. During the nine months ended October 4, 2009, we used $244.0 million for the redemption of all of the outstanding 6.5% Convertible Subordinated Notes due in December 2009. For the three and nine months ended October 4, 2009, we generated $68.7 million and $127.7 million in cash, respectively, from operating activities, as compared to $56.4 million and $179.9 million, respectively, for the three and nine months ended September 28, 2008.

We recorded charges of $4.7 million in restructuring of operations and other items, net, for the three months ended October 4, 2009, consisting of $3.2 million in charges for restructuring of operations and $1.5 million in charges for other items. Of the total charges, $3.0 million and $1.7 million were recorded in the Semiconductor segment and the Storage Systems segment, respectively. We recorded charges of $36.0 million in restructuring of operations and other items, net, for the nine months ended October 4, 2009, consisting of $28.2 million in charges for restructuring of operations and $7.8 million in charges for other items. Of the total charges, $32.8 million and $3.2 million were recorded in the Semiconductor segment and the Storage Systems segment, respectively.

We recorded charges of $1.6 million in restructuring of operations and other items, net, for the three months ended September 28, 2008, which were recorded in the Semiconductor segment. We recorded charges of $26.9 million in restructuring of operations and other items, net, for the nine months ended September 28, 2008, consisting of $15.0 million in charges for restructuring of operations and $11.9 million in net charges for other items. The majority of the $26.9 million in charges for the nine months ended September 28, 2008 were recorded in the Semiconductor segment.

Interest expense decreased $5.1 million and $8.9 million for the three and nine months ended October 4, 2009, respectively, as compared to the three and nine months ended September 28, 2008 as a result of the repurchase of $118.6 million of 6.5% Convertible Subordinated Notes in the fourth quarter of 2008 and the redemption of the remaining $243.0 million of 6.5% Convertible Subordinated Notes on June 15, 2009.

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

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10qk
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