Financial

posted on 28 July 2008 13:29

Storage and networking silicon-to-systems supplier LSI reported essentially flat revenues but a drastically reduced loss for its second quarter of 2008.

Q2 08 revenues were $692 million, up just 3 percent on the year-ago quarter's $670 million. LSI stated that 'Adjusting for the sale of the consumer and mobility businesses, second quarter revenues increased 24% year-over-year compared to the second quarter of 2007.'

The GAAP net income figure was a net loss of $14 million (-$0.02/share) compared to Q2 07's $378 million loss (-$0.50/share). LSI stated that 'Second quarter 2008 GAAP net loss included a net charge of $97 million from special items, consisting primarily of $58.6 million of amortization of acquisition-related items, $20.7 million of restructuring costs and other items, and $19.6 million of stock-based compensation expense.'

In other words they done good, just not good enough to scrape into a profit.

Abhi Talwalkar, LSI president and CEO, said: “Strong worldwide demand for our storage systems and networking products helped us deliver another quarter of solid results. During the quarter, we also continued to build significant momentum for the future, introducing several new storage and networking products and securing additional silicon design wins with top-tier hard disk drive and server makers."

Bryon Look, LSI CFO, said, “Our second quarter results reflect the ongoing benefit of the many strategic and operational steps we have taken over the past four quarters. Increases in net income compared to the year-ago period were significant, and we continue to focus on improving our top and bottom line results.”

The Q3 outlook is projected revenues of $695 million to $725 million and GAAP net loss in the range of ($0.03) to $0.04 per share. Perhaps it will make a proft in Q4 and have a fully profitable 2009. Then LSI CEO Abhi Talwalkar would be entitled to a very well-deserved pat on the back after a hard couple of years.

^{[B&F staff.]}