Better Guidance for LSI in Fiscal 1Q12

LSI Corporation updated its business outlook for the first quarter ending April 1, 2012, reflecting a stronger than expected hard disk drive market recovery and ramp of flash-based products.

Updated guidance represents 15% sequential revenue growth at midpoint.

Updated First Quarter 2012 Business Outlook

• Projected revenues: in the range of $585 million to $615 million, up from $550 million to $590 million
• Income from continuing operations per share: (1,4,5)
• GAAP: in the range of $0.06 to $0.10 per share
• Non-GAAP: In the range of $0.12 to $0.16 per share

"We are benefiting from better than expected strength in the hard disk drive market in the quarter as our team has done a great job working with our customers to meet this additional demand," said Abhi Talwalkar, LSI president and CEO. "This revised guidance reflects strength in our hard disk drive business as well as upside in our projections for our flash-based products."

Updated First Quarter 2012
Business Outlook Detail (GAAP)

• Revenue: $585 million to $615 million
• Gross Margin: ~45%
• Operating Expenses: ~$268 million
• Net Other Income: ~$11 million
• Tax: Benefit of ~$33 million
• Income from Continuing Operations Per Share: $0.06 to $0.10
• Diluted Share Count: 590 million (The change in share count is driven by the increase in our stock price, which increases the dilutive effect of stock options and restricted stock unit awards included in the diluted share count calculation.)