LSI Corporation (LSI:NYSE)

LSI Corporation will continue to look for acquisitions. Jeff Richardson, executive VP and general manager of LSI Corporation in an interview with Digitimes said, “LSI will continue to make small acquisitions to enhance our presence in the market, especially in the Asia-Pacific area which accounts for more than half of total revenues.”

LSI Corporation announced its 6Gb/s SAS MegaRAID® products are shipping on two new IBM System x servers, enabling new levels of server storage performance, reliability and scalability. The IBM rack-mount servers, with integrated LSI 6Gb/s SAS technology, provide end customers with cost-effective solutions for Web serving, e-business, collaboration, distributed database, SAP deployments and virtualization. The LSI(TM) 6Gb/s SAS MegaRAID products demonstrated a 190% throughput improvement for RAID 5 writes and a 240% throughput improvement for RAID 6 writes compared to products based on 3Gb/s SAS technology, translating to significant system performance gains. The LSISAS2108 6Gb/s SAS RAID-on-Chip (ROC) and MegaRAID software are integrated into IBM ServeRAID(TM) controllers found in IBM Systems x3650 M2 and x3550 model servers. The ServeRAID controllers, which are designed for inside-the-box connectivity, feature eight internal 6Gb/s SAS ports and support both SAS and SATA hard disk drives. An additional level of data security is available by using LSI SafeStore(TM) encryption services with self-encrypting drives (SED). The ServeRAID controllers provide high-performance RAID 6 support to protect against data loss in the event of dual-drive failures. The controllers also feature LSI MegaRAID Storage Manager(TM) software, for quick and easy access to disk encryption and RAID setup and management, as well as an intelligent battery backup unit that provides extremely accurate battery capacity monitoring.

LSI Corporation reported earnings results for the third quarter and nine months ended October 4, 2009. Third quarter 2009 revenues were $578 million, an 11% increase sequentially compared to $521 million reported in the second quarter of 2009. Third quarter 2009 revenues decreased 19% year over year compared to $714 million reported in the third quarter of 2008. Third quarter 2009 GAAP net income was $52 million or 8 cents per diluted share, compared to second quarter 2009 GAAP net loss of $61 million or 9 cents per share. Third quarter GAAP results included a $65 million tax benefit, or 10 cents per diluted share, primarily related to the settlement of a multi-year foreign tax audit. Third quarter 2009 GAAP results compare to third quarter 2008 GAAP net income of $11 million or 2 cents per diluted share. Third quarter 2009 GAAP net income included a net charge of $66 million from special items, consisting primarily of $43 million of amortization of acquisition-related items, $15 million of stock-based compensation expense, $6.6 million in net restructuring and other items, and $1.7 million in write-down of investments. Third quarter 2009 non-GAAP net income was $119 million or 18 cents per diluted share compared to second quarter 2009 non-GAAP net income of $7 million or 1 cent per diluted share. Third quarter non-GAAP results included earnings of 10 cents per diluted share reflecting the above-mentioned tax benefit. Third quarter non-GAAP net income compares to third quarter 2008 non-GAAP net income of $94 million or 14 cents per diluted share. For the quarter, the company reported loss from operations of $12.3 million and loss before income taxes of $12.7 million compared to income from operations of $22.5 million and income before income taxes of $21.5 million for the same period a year ago. For the quarter, the company reported net cash provided by operating activities of $68.6 million and purchase of property, equipment and software of $20.1 million compared to net cash provided by operating activities of $56.4 million and purchase of property, equipment and software of $27.1 million for the same period a year ago. For the nine months, the company reported revenues of $1,581.3 million and loss from operations of $162.3 million and loss before income taxes of $164.5 million and net loss of $112.5 million or $0.17 per diluted share compared to revenues of $2,067.1 million and loss from operations of $1.65 million and income before income taxes of $2.2 million and net loss of $15.9 million or $0.02 per diluted share for the same period a year ago. For the nine months, the company reported net cash provided by operating activities of $127.7 million and purchase of property, equipment and software of $68.7 million compared to net cash provided by operating activities of $179.8 million and purchase of property, equipment and software of $95.0 million for the same period a year ago. For the fourth quarter, the company projected revenues of $605 million to $645 million and GAAP net loss/income in the range of ($0.04) to $0.05 per share and Non-GAAP net income in the range of $0.07 to $0.13 per share. Capital spending is projected to be around $15 million in the fourth quarter and approximately $45 million in total for 2009.