LSI Logic Reports Q3 2004 Financial Results
Provides Q4 Business Outlook

Third Quarter News Release Summary

    • Fourth Quarter Business Outlook

  • Projected revenue of $360 million to $390 million.
  • GAAP* net loss range of 54-57 cents per diluted share.
  • Net loss, excluding special items**, in the range of 2– 5 cents per diluted share.
    • ** Acquisition-related amortization, restructuring and other special items.

    LSI Logic Drives Toward Profitable 2005 Comprehensive Restructuring Program Initiated

    GAAP* Excluding Special Items Revenue  
    41-43 percent 41-43 percent Operating Expenses Approximately 200 million ‡
    $(2) to $(3) million $(2) to $(3) million Tax Provision  
    ($0.57) to ($0.54) ‡ ($0.05) to ($0.02) Diluted Share Count  

    ‡ LSI Logic’s estimated fourth quarter GAAP results include an anticipated $177 million non-cash charge for Gresham manufacturing facility impairment.

    Capital spending is projected to be around $40 million in the fourth quarter, and approximately $80 million in total for 2004.

    Fourth quarter depreciation and software amortization is expected to be approximately $23 million.

    *  Generally Accepted Accounting Principles

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