Some analysts have suggested that analog is a great market to be in right now, and LSI Logic's numbers seem to support that thesis.
The analog and mixed signal chipmaker LSI Logic Corp. said Wednesday that Q1 revenues rose 7 percent sequentially and flat year over year, coming in at $450 million – beating its previous guidance, in a traditionally down quarter.
Net income for the quarter was $5 million, or 1 cent per share. The Milpitas, Calif.-based company posted a net loss in the prior quarter of $197 million, or 51 cents per diluted share, thanks to a non-cash charge of $178 million associated with layoffs at its Gresham, Ore. campus. In the year ago period it posted net income of $9 million, or 2 cents per diluted share.
LSI's numbers came in well ahead of its previous guidance of revenue of $420 million to $435 million. Gross margins and special charges kept the company from realizing more net income on the revenue growth. The company issued guidance for current quarter revenue to be flat to up 3 percent, with net income to be 1 cent to 3 cents per share.
In late morning trading today, LSI's stock was trading at $5.50 per share, unchanged from Wednesday's close.
"Continued growth of existing products, the ramp of new products and the work down of supply chain inventory contributed to LSI Logic's sequential revenue growth and profitability in the first quarter," Wilf Corrigan, LSI Logic chairman and CEO, said in a statement. "In storage components, LSI Logic demonstrated across-the-board strength in storage ASICs, storage standard products and RAID storage adapters.
"Our Engenio storage systems subsidiary experienced a seasonal decline in the first quarter. In communications, we saw a modest increase in the enterprise networking space, while telecommunications was unchanged," Corrigan continued. "Our RapidChip platform design wins continued to grow in the first quarter as we introduced the Integrator2 and Xtreme2 slice families and received increasing production orders for our platform ASIC products.
"In consumer, the company overcame traditional first quarter seasonality as a result of strong demand for our new products shipped into our diverse DVD recorder customer base across all geographies, the fast ramp of our digital audio products and better-than-anticipated demand for our video game products," Corrigan said.
At the end of the quarter LSI Logic's cash and short-term investments grew by $51 million to $866 million. The company generated $59 million in cash from operations, representing the company's 12th consecutive quarter of positive operating cash flow.
LSI wasn't the only analog chipmaker to enjoy a strong Q1, Intersil also managed slight sequential revenue growth during the quarter, which is traditionally affected by seasonality.
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