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LSI Closes Q4

MILPITAS, Calif. — LSI Corporation (NYSE: LSI) today reported results for its fourth quarter and full year ended December 31, 2010.

Fourth Quarter and Full-Year 2010 News Release Summary

• Fourth quarter 2010 revenues of $664 million
• Fourth quarter 2010 GAAP* net loss of 2 cents per share
• Fourth quarter 2010 non-GAAP** net income of 14 cents per diluted share
• Fourth quarter operating cash flows of $112 million
• Full-year 2010 revenues of $2.6 billion

First Quarter 2011 Business Outlook

• Projected revenues of $605 million to $635 million
• GAAP* net (loss)/income in the range of ($0.03) to $0.07 per share
• Non-GAAP** net income in the range of $0.07 to $0.13 per share

* Generally Accepted Accounting Principles.
** Excludes goodwill and other intangible asset impairment, stock-based compensation, amortization of acquisition-related intangibles, purchase accounting effect on inventory, restructuring of operations and other items, net, and gain/loss on sale/write-down of investments. It also excludes the income tax effect associated with the above mentioned items.

Fourth quarter 2010 revenues were $664 million, a 4% increase year over year compared to $638 million reported in the fourth quarter of 2009, and compared to $629 million reported in the third quarter of 2010.

Fourth quarter 2010 GAAP* net loss was $13 million or 2 cents per share, compared to fourth quarter 2009 GAAP net income of $65 million or 10 cents per diluted share. Fourth quarter 2010 GAAP results compare to third quarter 2010 GAAP net income of $23 million or 4 cents per diluted share. Fourth quarter 2010 GAAP net income included a net charge of $103 million from special items, consisting primarily of $48 million of net restructuring and other items, $40 million of amortization of acquisition-related items, and $15 million of stock-based compensation expense.

Fourth quarter 2010 non-GAAP** net income was $90 million or 14 cents per diluted share, compared to fourth quarter 2009 non-GAAP net income of $124 million or 18 cents per diluted share. Third quarter 2010 non-GAAP net income was $79 million or 13 cents per diluted share.

Cash and short-term investments totaled approximately $677 million at quarter end. The company completed fourth-quarter purchases of approximately 6 million shares of its common stock for approximately $32 million. In 2010, the company purchased approximately 51 million shares of its common stock for approximately $250 million, completing its repurchase program announced in March, 2010.

“We delivered solid quarterly revenue growth with revenues near the high end of our guidance range, reflecting seasonal strength in our storage systems and storage semiconductor businesses,” said Abhi Talwalkar, LSI president and chief executive officer. “For the full year, our revenues grew substantially, driven by increased enterprise spending for IT infrastructure products that rely on our technology. As economic conditions continue to improve in 2011, we expect to benefit from higher enterprise spending levels and new product ramps with our tier one customers.”

{complink 10285|LSI Corp.}

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