LSI Corp Earnings: Swinging to a Loss After Two Quarters of Profit

S&P 500 (NYSE:SPY) component LSI Corporation’s (NYSE:LSI) fourth quarter loss narrowed, beating estimates. LSI designs and markets complex storage and networking semiconductors and storage systems.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

LSI Earnings Cheat Sheet for the Fourth Quarter

Results: Loss narrowed to $1.8 million (loss of 0 cents per diluted share) from $13.4 million (loss of 2 cents per share) in the same quarter a year earlier.

Revenue: Rose 11.2% to $523.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: LSI reported adjusted net income of 13 cents per share. By that measure, the company beat the mean estimate of 8 cents per share. Analysts were expecting revenue of $526.1 million.

Quoting Management: “Our growth last year in a challenging macro environment and our guidance for the first quarter of 2012 demonstrate the results of our ongoing strategic focus on delivering semiconductors and software that accelerate storage and networking applications,” said Abhi Talwalkar, LSI president and CEO. “We enter 2012 building on strong business momentum and are accelerating our revenue growth with share gains and new design wins at key customers and in critical markets such as mega datacenters, cloud computing, mobile networks and flash storage.”

Key Stats:

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $29.3 million in the third quarter, a profit of $293.8 million in the second quarter and $10.2 million in the first.

The company beat estimates last quarter after being in line with expectations in the third quarter with net income of 12 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 10 cents a share to 8 cents over the last ninety days. At 36 cents per share, the average estimate for the fiscal year has fallen from 39 cents ninety days ago.

Competitors to Watch: Intel Corporation (NASDAQ:INTC), PMC-Sierra, Inc. (NASDAQ:PMCS), Texas Instruments Inc. (NYSE:TXN), Intl. Business Machines Corp. (NYSE:IBM), Silicon Laboratories (NASDAQ:SLAB), PLX Technology, Inc. (NASDAQ:PLXT), Oracle Corporation (NASDAQ:ORCL), Marvell Tech. Group Ltd. (NASDAQ:MRVL), Dell Inc. (NASDAQ:DELL), and Integrated Device Tech., Inc. (NASDAQ:IDTI).

Stock Performance: Shares of LSI were down 0.7% from the previous close.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

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

 

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com