LSI LOGIC REPORTS Q4 AND FULL-YEAR 2006 RESULTS

25/gen/2007 16.10.00 CynthiaCartaAdv. Contatta l'autore

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LSI LOGIC REPORTS Q4 AND FULL-YEAR 2006 RESULTS

 

Fourth Quarter 2006 GAAP Net Income Increases 56% Year-Over-Year

 

Fourth Quarter and Full-Year 2006 News Release Summary

 

g Fourth quarter 2006 revenues of $524 million; up 6% sequentially

 

g Fourth quarter 2006 GAAP* net income of 14 cents per diluted share

 

g Fourth quarter 2006 non-GAAP** net income of 18 cents per diluted share

 

g Full-year 2006 revenues of $2 billion; up 3% compared to $1.9 billion for 2005

 

g Cash and short-term investments of $1 billion

 

 

First Quarter 2007 Business Outlook

 

g Projected revenues of $460 million to $480 million

 

g GAAP* net income range of 3 - 5 cents per diluted share

 

g Non-GAAP** net income in the range of 8 - 10 cents per diluted share

 

 

*     Generally Accepted Accounting Principles.

**   Excludes acquisition-related amortization, restructuring and other special items, and stock-based compensation expense. The Company adopted the provisions of SFAS No. 123(R) “Share-Based Payment” on January 1, 2006, using the modified prospective transition method.


 

STRONG YEAR-OVER-YEAR REVENUE GROWTH IN STORAGE SEMICONDUCTORS AND SYSTEMS

 

MILPITAS, Calif., January 25, 2007 - LSI Logic Corporation (NYSE: LSI) today reported fourth quarter 2006 revenues of $524 million, a 3% increase year-over-year compared to the $506 million reported in the fourth quarter of 2005, and up 6% sequentially compared to the $493 million reported in the third quarter of 2006.

 

Fourth quarter 2006 GAAP* net income was $59 million or 14 cents per diluted share, compared to fourth quarter 2005 GAAP net income of $38 million or 9 cents per diluted share. Fourth quarter 2006 GAAP results compare to third quarter 2006 GAAP net income of $44 million or 11 cents per diluted share. Fourth quarter 2006 GAAP net income included $10.9 million of stock-based compensation expense and a net charge of $5.2 million from special items, acquisition-related amortization, restructuring and their related tax effect.

 

Fourth quarter 2006 non-GAAP** net income was $75 million or 18 cents per diluted share, an increase of 47% compared to fourth quarter 2005 non-GAAP net income of $51 million or 13 cents per diluted share. Third quarter 2006 non-GAAP net income was $65 million or 16 cents per diluted share.

 

Cash and short-term investments totaled $1.01 billion at quarter end, with $272 million in repayment of convertible notes completed during the quarter.

 

“Our solid fourth quarter performance was fueled by the seasonally-strong demand for storage products, with 22% sequential growth and record quarterly revenue in our Engenio systems business,” said Abhi Talwalkar, LSI Logic president and chief executive officer. “For the full year, storage semiconductor and system revenues grew at healthy, double-digit rates of 14% and 12% respectively. During the quarter, we also agreed to merge with Agere Systems Inc. to create a storage, networking and consumer powerhouse that we anticipate will better serve our customers, shareholders and employees.”

 

LSI recorded full year 2006 revenues of $1.98 billion, a 3% increase compared to $1.92 billion in 2005. The company reported 2006 GAAP net profit of $170 million or 42 cents per diluted share, which includes $47 million of stock-based compensation expense and a net charge of $19.5 million from special items, acquisition-related amortization, restructuring and their related tax effect. Full year 2006 GAAP results compare to full year 2005 GAAP net loss of $6 million or 1 cent per diluted share which included a $91 million non-cash charge associated with the sale of the company’s former Gresham, Oregon manufacturing facility.

 

Non-GAAP net income for 2006 grew to $236 million or 58 cents per diluted share compared to 2005 non-GAAP net income of $166 million or 42 cents per diluted share.

 

“GAAP net income for the quarter grew 35% sequentially and 56% compared to the same quarter in 2005,” said Bryon Look, LSI Logic chief financial officer. “Our balance sheet remained strong with a net cash position of $659 million. The company generated operating cash flows of $51 million for the quarter and $247 million for the full year.”

 

 

LSI Logic First Quarter 2007 Business Outlook

 

 

GAAP*

Special Items

Non-GAAP**

Revenue

$460 million to $480 million

   

$460 million to $480 million

Gross Margin

40.5 - 42.5%

Approximately $1 million

41.0 - 43.0%

Operating Expenses

$178 million to $182 million

Approximately $20 million

$158 million to $162 million

Net Other Income

$ 5 million

 

$ 5 million

Effective Tax Rate

21%

Approximately ($3 million)

15%

Net Income Per Share

$0.03 to $0.05

Approximately ($0.05)

$0.08 to $0.10

Diluted Share Count

 

415 million

 

419 million

 

Capital spending is projected to be around $15 million in the first quarter and approximately $55 million in total for 2007.

 

First quarter depreciation and software amortization is expected to be approximately $12 million.

 

*     Generally Accepted Accounting Principles.

**   Excludes special items defined as acquisition-related amortization, restructuring and other special items, and approximately $10.2 million in stock-based compensation expense. The Company adopted the provisions of SFAS No. 123(R) “Share-Based Payment” on January 1, 2006, using the modified prospective transition method.

 

NOTE: The Company’s financial guidance will be limited to the comments made on today’s public conference call and contained in the First Quarter 2007 Business Outlook section of this news release.

 

LSI Logic Conference Call Information

LSI Logic will hold a conference call today at 2 pm PDT to discuss fourth quarter financial results and the first quarter 2007 business outlook. The number is 1-303-262-2051. Internet users can access the conference call at http://www.lsi.com/investors. A replay of the call will be available today at approximately 5 pm PDT and will be available for 48 hours. The replay access numbers are 1-800-405-2236 within the U.S. and 1-303-590-3000 for all other locations, passcode 11081403#.

 

Safe Harbor for Forward Looking Statements: This news release contains forward-looking statements, which include the following: projected revenues for the first quarter of 2007, projected GAAP net income for the first quarter of 2007, projected non-GAAP net income for the first quarter of 2007, projected capital spending in the first quarter of 2007 and for the year and expected first quarter of 2007 depreciation and software amortization. Forward-looking statements also include projections of gross margins, operating expenses, net other income, tax provisions, net income per share, diluted share count and statements about the benefits that we anticipate from our pending merger with Agere Systems to customers, shareholders and employees. These forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause LSI Logic’s actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: any failure of the LSI or Agere stockholders to approve our proposed merger with Agere or any other failure of the completion of the proposed merger; the challenges and costs of closing of the proposed merger with Agere and integrating and restructuring our operations and achieving anticipated synergies; fluctuations in the timing and volumes of customer demand; the company’s inability to achieve revenue objectives; the company’s inability to meet financial targets and failure to execute on its financial plan; the company’s inability to generate positive operating cash flow or control operating expenses; and the unavailability of appropriate levels of manufacturing capacity. For additional information, readers are referred to the documents filed by LSI Logic with the SEC, and specifically the risk factors set forth in the company’s most recent reports on Form 10-K, 10-Q, 8-K and in the Registration Statement on Form S-4 that LSI Logic has filed in connection with the pending merger with Agere Systems. LSI Logic is not obligated to update these forward-looking statements to reflect events or circumstances after the date of this document.

 

About LSI Logic

LSI Logic Corporation is a leading provider of silicon-to-systems solutions that are used at the core of products that create, store and consume digital information. LSI offers a broad portfolio of capabilities including custom and standard product ICs, host bus and RAID adapters, storage area network solutions and software applications. LSI products enable leading technology companies in the Storage and Consumer markets to deliver some of the most advanced and well-known electronic systems in the market today. More information is available at www.lsi.com.

 

# # #

 

Editor's Notes:

1.       All LSI Logic news releases (financial, acquisitions, manufacturing, products, technology etc.) are issued exclusively by PR Newswire and are immediately thereafter posted on the company’s external website, http://www.lsi.com.

2.       The LSI Logic logo design is a registered trademark of LSI Logic Corporation.

3.       All other brand or product names may be trademarks or registered trademarks of their respect

 

Ufficio Stampa Italia

 

Cynthia Carta Adv.
Advertising Communication
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www.cynthiacartaadv.it

 

 

Cynthia Carta Adv.
Advertising Communication
Via Novara, 216 20153 Milano
Ph. ++39(0)2 40918411
Fax ++39(0)2 40916614
Mobile++39 3385909592
e-mail cyncarta@virgilio.it
cyncarta@cynthiacartaadv.it
www.cynthiacartaadv.it
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