LSI Logic Reports Q2 2004 Financial Results
Provides Q3 Business Outlook
Second Quarter News Release Summary
(Excludes effect of potential storage systems IPO)
** Acquisition-related amortization, restructuring and other special items.
Milpitas, Calif., July 27, 2004 - LSI Logic Corporation (NYSE: LSI) today reported 2004 second quarter revenues of $448 million, an increase of 10 percent compared to the $407 million reported in the second quarter of 2003 and a 1 percent sequential decrease compared to the $452 million reported in the first quarter of 2004.
Cash and short-term investments totaled $847 million at the end of the second quarter of 2004. The company generated positive operating cash flow for the ninth consecutive quarter.
Second quarter 2004 GAAP* net income was $7 million or 2 cents per diluted share compared to a GAAP net loss of $162 million or 43 cents per diluted share in the 2003 second quarter. First quarter 2004 GAAP net income was $9 million or 2 cents per diluted share.
Second quarter 2004 net income, excluding special items**, was $28 million or 7 cents per diluted share compared to a net loss, excluding special items, of $6 million or 2 cents per diluted share in the second quarter of 2003. Excluding special items, first quarter 2004 net income was $25 million or 6 cents per diluted share.
"Late in the second quarter, we saw some slowing of the overall business that is carrying over into the third quarter," said Wilfred Corrigan, LSI Logic chairman and chief executive officer. "However we expect the second half of the year as a whole to be stronger than the first half of the year, driven by continued growth in consumer electronics and an improvement in IT orders from our customer base later in the year."
"LSI Logic began production shipments of RapidChip Platform ASICs in the second quarter, and we expect a steady growth ramp in the second half of this year leading to volume production in 2005," said Joe Zelayeta, LSI Logic executive vice president of ASIC Technology and Methodology. "We are generating repeat orders from existing and new customers based upon the high-performance, low-design cost and quick time-to-revenue advantages of LSI Logics Platform ASICs."
"LSI Logics year-over-year improvements in revenues, gross margin and profitability continued in the second quarter," said Bryon Look, LSI Logic chief financial officer. "During the past 12 months, we have generated $124 million in positive operating cash flow, eliminated all short-term debt and strengthened our balance sheet."
LSI Logic Third Quarter Business Outlook
LSI Logic Conference Call Information |
Special Items** | ||
| $435 million to $465 million | $435 million to $465 million | Gross Margin | |
| $198 to $202 million | $173 to $177 million | Net Other Income (Exp.) | |
| $6 million | $6 million | Earnings/Loss Per Share | Approximately $0.06 |
| $393 million | $393 million | /td> |
