Strong earnings per share and gross margins

(PRNewswire) — LSI Corporation (NASDAQ: LSI) today reported results for its first quarter ended March 31, 2013.

First Quarter 2013 Highlights

• First quarter 2013 revenues of $569 million
• First quarter 2013 GAAP* net income of $0.03 per diluted share
• First quarter 2013 non-GAAP** net income of $0.17 per diluted share
• First quarter 2013 operating cash flows of $63 million

Second Quarter 2013 Business Outlook

• Projected revenues of $560 million to $600 million
• GAAP* net income in the range of ($0.02) to $0.07 per share
• Non-GAAP** net income in the range of $0.10 to $0.16 per share
  * Generally Accepted Accounting Principles.
  ** Excludes stock-based compensation, amortization of acquisition-related intangibles, purchase accounting effect on inventory, restructuring of operations and other items, net, gain on remeasurement of a pre-acquisition equity interest to fair value, and gain/loss on sale/write-down of investments.  It also excludes the income tax effect associated with the above-mentioned items.

"LSI achieved strong results and better than expected revenues in the first quarter, despite a challenging environment for PCs and mobile infrastructure investment," said Abhi Talwalkar, LSI's president and CEO. "Looking forward, we are very excited about the flash application acceleration market and our Nytro flash adapter solutions continue to gain strong acceptance with customers looking to accelerate Virtual Desktop Infrastructure (VDI), Hadoop and other Big Data applications, as well as with leading cloud based services."

First quarter 2013 revenues were $569 million, in line with guidance, compared to $622 million in the first quarter of 2012, and compared to $600 million in the fourth quarter of 2012.

First quarter 2013 GAAP* net income was $18 million or $0.03 per diluted share, compared to first quarter 2012 GAAP net income of $75 million or $0.13 per diluted share. Fourth quarter 2012 GAAP net income was $23 million or $0.04 per diluted share. First quarter 2013 GAAP net income included a net charge of $76 million from special items, consisting primarily of approximately $30 million of amortization of acquisition-related items, $26 million of stock-based compensation expense and $20 million of net restructuring and other items.

First quarter 2013 non-GAAP** net income was $94 million or $0.17 per diluted share, compared to first quarter 2012 non-GAAP net income of $117 million or $0.20 per diluted share. Fourth quarter 2012 non-GAAP net income was $101 million or $0.18 per diluted share.

Cash and short-term investments totaled approximately $659 million at quarter end. The company completed first-quarter purchases of approximately 9 million shares of its common stock for approximately $61 million.

"We delivered solid earnings per share, while investing for growth in current and future product areas," said Bryon Look, LSI's CFO. "We also generated strong gross margins in Q1, and continue to use our healthy cash position to pursue our stock buyback program."

LSI 2Q2013 Business Outlook

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