Chipmaker LSI's quarterly revenue beats estimates
(Reuters) - Chipmaker LSI Corp reported quarterly results above analysts' estimates and forecast current-quarter revenue largely above expectations at a time when weak PC sales and a slow economy have created uncertainty about demand for storage controllers.
LSI said revenue fell 9 percent to $569 million in the first quarter, but this beat the average analyst estimate of $555.1 million, according to Thomson Reuters I/B/E/S.
Net income slid to $18 million, or 3 cents per share, from $75 million, or 13 cents per share, a year earlier. On an adjusted basis, the company earned 17 cents per share, above the average estimate of 12 cents.
LSI gets about a third of its revenue from selling chips used in hard drives, and Seagate Technology Plc accounted for about 31 percent of its revenue last year.
But hard drive sales have been hit as consumers buy fewer personal computers and increasingly shift to smartphones.
Technology tracking firm International Data Corp said earlier this month that PC sales fell 14 percent in the first three months of the year, the biggest decline in two decades of keeping records.
LSI also makes chips for solid state, or flash, drives and networking and enterprise servers.
LSI forecast current-quarter revenue in the range of $560 million to $600 million.
The company also said expects adjusted earnings per share of between 10 cents and 16 cents in the second quarter.
Analysts on average were expecting earnings per share of 13 cents on revenue of $581.5 million.
LSI shares were trading at $6.47 in after-hours trading on Wednesday, after closing at $6.35 on the Nasdaq.
(Reporting by Neha Alawadhi in Bangalore; Editing by Ted Kerr)