LSI With Better First Quarter Guidance

LSI Corporation updated its business outlook for the first quarter ending April 4, 2010 and has announced the authorization of a new share repurchase program.

First Quarter 2010 Business Outlook

• Projected revenues of $620 million to $640 million
• GAAP net (loss)/income in the range of ($0.03) to $0.04 cents per share
• Non-GAAP net income in the range of $0.07 to $0.11 cents per share

The company anticipates GAAP gross margin of approximately 42% and GAAP operating expenses of approximately $255 million, both at the high end of the prior guidance range. On a non-GAAP basis, the company anticipates gross margin of approximately 47% and operating expenses of approximately $228 million, both at the high end of the prior guidance range.

"Our revised guidance reflects greater-than-anticipated strength in the recovery of enterprise IT spending during the first quarter," said Abhi Talwalkar, LSI president and chief executive officer. "As the majority of our revenues are tied to enterprise purchases of servers, data storage and networking infrastructure, we experienced strength across all product areas that exceeded our previous guidance."

LSI also announced that its board of directors has authorized a stock repurchase program of up to $250 million. Under terms of the authorization, shares may be repurchased from time to time in the open market or through privately-negotiated transactions. The company will determine the timing and amount of any repurchases based on its evaluation of market conditions, business considerations and other factors. The repurchases are expected to be funded from available cash and short-term investments.