LSI Corp Earnings: Beats the Street on Profit Rise

S&P 500 (NYSE:SPY) component LSI Corporation (NYSE:LSI) reported net income above Wall Street’s expectations for the first quarter. LSI designs and markets complex storage and networking semiconductors and storage systems.

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LSI Earnings Cheat Sheet for the First Quarter

Results: Net income for LSI Corporation rose to $75.2 million (13 cents per share) vs. $10.2 million (2 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Revenue: Rose 31.5% to $622.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: LSI Corporation beat the mean analyst estimate of 11 cents per share. It beat the average revenue estimate of $599.8 million.

Quoting Management: “In the first quarter, LSI delivered double-digit revenue growth and demonstrated significant progress towards our business model and non-GAAP operating margin target,” said Bryon Look, LSI CFO and chief administrative officer. “Year over year, our revenues grew 32% and non-GAAP income from operations increased 80%.”

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the first quarter of the last fiscal year, which saw a 25.7% decrease.

Gross margin shrank 1.3 percentage points to 46.1%. The contraction appeared to be driven by increased costs, which rose 34.7% from the year earlier quarter while revenue rose 31.5%.

The company has beaten estiamtes for two quarters in a row. In the fourth quarter of the last fiscal year, it topped expectations with net income of 11 cents versus a mean estimate of net income of 8 cents per share.

After sitting in the red the quarter before, the company reported a profit last quarter. In the third quarter of the last fiscal year, the company booked a net loss of $29.3 million, or a loss of 5 cents per share.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the second quarter has risen to 12 cents per share from 10 cents. For the fiscal year, the average estimate has moved up from 44 cents a share to 53 cents over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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