Chipmaker LSI's revenue forecast below estimates

Reuters News
Posted: Oct 24, 2012 4:31 PM
Chipmaker LSI's revenue forecast below estimates

SAN FRANCISCO (Reuters) - Chipmaker LSI <LSI.N> forecast on Wednesday revenue below expectations as slow PC sales and a weak economy hurt demand for storage controllers.

The company posted third-quarter revenue from continuing operations of $624 million, up 14 percent from the year-ago period.

It estimated current-quarter revenue would be between $570 million and $610 million.

Analysts were expecting revenue of $637 million for the third quarter and $648 million for the current quarter, according to Thomson Reuters I/B/E/S.

LSI gets about a third of its revenue from selling chips used in hard drives. It also sells chips for solid-state drives, networking and enterprise servers.

Sales of personal computers, which use hard drives made with chips sold by LSI, have been hit by a weak global economy and a shift by consumers toward tablets and smartphones.

Third-quarter income from continuing operations rose to $40 million, or 7 cents a share, compared with $29 million, or 5 cents a share, in the same quarter last year. Non-GAAP income per share from continuing operations was 17 cents, in line with expectations.

LSI said non-GAAP income per share from continuing operations in the fourth quarter would be between 11 cents and 17 cents.

Shares of LSI were unchanged in extended trading after closing down 2.48 percent at $6.29.

(Reporting By Noel Randewich. Editing by Andre Grenon)