Initiates $0.03 per share quarterly dividend

SAN JOSE, Calif., July 24, 2013 /PRNewswire-FirstCall/ -- LSI Corporation (NASDAQ: LSI) today reported results for its second quarter ended June 30, 2013.

Second Quarter 2013 Highlights

• Second quarter 2013 revenues of $590 million
• Second quarter 2013 GAAP* net income of $0.04 per diluted share
• Second quarter 2013 non-GAAP** net income of $0.15 per diluted share
• Second quarter 2013 operating cash flows of $78 million

Third Quarter 2013 Business Outlook

• Projected revenues of $590 million to $630 million
• GAAP* net income in the range of $0.01 to $0.11 per share
• Non-GAAP** net income in the range of $0.13 to $0.19 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 delivered solid second quarter results as we established key inroads at strategic customers who are choosing LSI storage and networking solutions to improve performance and deliver higher service levels to their customers," said Abhi Talwalkar, LSI's President and CEO.  "We expect both our storage and networking businesses to be up in the third quarter, with new product cycles contributing to our growth."

Second quarter 2013 revenues were $590 million, in line with guidance, compared to $660 million in the second quarter of 2012, and compared to $569 million in the first quarter of 2013.

Second quarter 2013 GAAP* net income was $25 million or $0.04 per diluted share, compared to second quarter 2012 GAAP net income of $59 million or $0.10 per diluted share. First quarter 2013 GAAP net income was $18 million or $0.03 per diluted share. Second quarter 2013 GAAP net income included a net charge of $59 million from special items, consisting primarily of approximately $29 million of amortization of acquisition-related items, $22 million of stock-based compensation expense and $8 million of net restructuring and other items.

Second quarter 2013 non-GAAP** net income was $84 million or $0.15 per diluted share, compared to second quarter 2012 non-GAAP net income of $121 million or $0.21 per diluted share. First quarter 2013 non-GAAP net income was $94 million or $0.17 per diluted share.

Cash and short-term investments totaled approximately $673 million at quarter end. The company completed second-quarter purchases of approximately 9 million shares of its common stock for approximately $62 million.

"We are generating cash and healthy gross margins, while carefully managing spending in what continues to be an uncertain external environment," said Bryon Look, LSI's CFO. "The dividend we announced today, coupled with our ongoing share buyback program, further demonstrates our confidence and continued commitment to shareholder return."

LSI 3Q2013 Business Outlook

Capital spending is projected to be around $25 million in the third quarter and approximately $85 million in total for 2013.

Depreciation and software amortization is projected to be around $15 million in the third quarter and approximately $60 million in total for 2013.

LSI Conference Call Information
LSI will hold a conference call today at 2 p.m. PDT to discuss second quarter 2013 financial results and the third quarter 2013 business outlook. Internet users can access the conference call at http://www.lsi.com/webcast . Subsequent to the conference call, a replay will be available at the same web address.