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LSI Corp. Reports Operating Results (10-Q)

May 12, 2010 | About:
10qk

10qk

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LSI Corp. (LSI) filed Quarterly Report for the period ended 2010-04-04.

Lsi Corp. has a market cap of $3.73 billion; its shares were traded at around $5.68 with a P/E ratio of 17.2 and P/S ratio of 1.7. LSI is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

We reported net income of $22.5 million, or $0.03 per diluted share, for the three months ended April 4, 2010, as compared to a net loss of $103.5 million, or $0.16 per diluted share, for the three months ended April 5, 2009. During the three months ended April 4, 2010, we recorded restructuring of operations and other items, net of $1.6 million, as compared to $25.2 million for the three months ended April 5, 2009. For the three months ended April 4, 2010, we recorded an income tax benefit of $18.8 million, as compared to an income tax provision of $8.0 million for the three months ended April 5, 2009. The $18.8 million benefit for income taxes was primarily the result of the reversal of certain liabilities due to the expiration of various statutes of limitations in foreign jurisdictions.

Cash, cash equivalents and short-term investments were $1,015.5 million as of April 4, 2010, as compared to $962.1 million as of December 31, 2009. For the three months ended April 4, 2010, we generated $105.8 million in cash from operating activities, as compared to $9.8 million used in operating activities for the three months ended April 5, 2009. We expect to repay $350 million of our outstanding 4% Convertible Subordinated Notes due on May 15, 2010 from our current available cash and cash equivalents.

For the three months ended April 4, 2010, we recorded charges of $1.6 million in restructuring of operations and other items, net, consisting of $1.4 million in charges for restructuring of operations and $0.2 million in charges for other items. Of these charges, $1.3 million and $0.3 million were recorded in the Semiconductor segment and the Storage Systems segment, respectively.

For the three months ended April 5, 2009, we recorded charges of $25.2 million in restructuring of operations and other items, net, 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 recorded in the Semiconductor segment.

During the three months ended April 4, 2010 and April 5, 2009, we recorded an income tax benefit of $18.8 million and a provision of $8.0 million, respectively. For the three months ended April 4, 2010, we recorded a reversal of $27.9 million in liabilities, which includes previously unrecognized tax benefits of $12.2 million and interest and penalties of $15.7 million, as a result of the expiration of various statutes of limitations in multiple jurisdictions. For the three months ended April 5, 2009, we recorded a reversal of $29.8 million in liabilities, which includes previously unrecognized tax benefits of $15.7 million and interest and penalties of $14.1 million, because of the expiration of various statutes of limitations. We also recorded an increase of $32.9 million in liabilities, which includes previously unrecognized tax benefits of $25.0 million and interest and penalties of $7.9 million, because of re-measurements of uncertain tax positions taken in prior periods based on new information.

Cash used in financing activities for the three months ended April 4, 2010 was $22.6 million, as compared to one thousand dollars provided by financing activities for the three months ended April 5, 2009. The primary financing activities during the three months ended April 4, 2010 were the use of $26.2 million to purchase our common stock, offset in part by the proceeds from issuances of common stock under our employee stock plans. On March 17, 2010, we announced that our Board of Directors had authorized a stock repurchase program of up to $250.0 million of our common stock.

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