LSI records $7.4 million in 2nd-quarter net income, reversing loss and meeting estimates

LSI posts a 2Q profit, reversing year-ago loss

MILPITAS, Calif. — LSI Corp., a maker of storage and networking chips, said Wednesday it posted $7.4 million in net income in the second quarter on expense control and higher gross margins, reversing a loss from last year.

Though the per-share result met Wall Street’s expectations, LSI’s revenue outlook for the current quarter fell short, sending shares lower in after-hours trading.

The company posted net income of $7.4 million, or 1 cent a share, in the three months ended July 4, compared with a loss of $61.5 million, or 9 cents a share, in the year-ago period.

Excluding certain one-time items, net income was 11 cents per share.

Quarterly revenue increased 23 percent to $639.4 million from $520.7 million in the previous year.

On average, analysts polled by Thomson Reuters expected net income of 11 cents per share on $654.4 million in revenue. Analysts typically leave out one-time items in their estimates.

Gross margin as a percentage of revenues improved to 43.1 percent from 34.7 percent a year ago.

The company also said it expects adjusted net income between 8 cents per share and 14 cents per share in the third quarter. Revenue is estimated between $625 million and $655 million.

Analysts are expecting net income of 13 cents per share on $695 million in revenue.

LSI shares fell 24 cents, or 5.1 percent, to $4.50 in after-hours trading.