MILPITAS, Calif. -- On the momentum behind its communications-related semiconductor business, LSI Logic Corp. has broken the $2 billion annual revenue mark.
So high on the communications market is the chip maker, in fact, that it has established a $50 million venture fund (similar to one strated by Intel Corp. last year) to invest in emerging communications technologies and startup companies.
"LSI Logic enters the new century growing faster than the global semiconductor industry as a whole, and strategically positioned to capitalize on the global communications revolution," said companychairman and chief executive, Wilfred J. Corrigan.
LSI on Tuesday reported fourth-quarter revenue of $585 million, up 8% over the prior quarter, driven by its communications product group, its fastest growing business unit, which now represents 39% of total company revenue.
Earnings also dazzled, with 47 cents per diluted share beating First Call Corp. consensus estimates of 43 cents. Net income for the quarter was $76 million, before taking into account amortization of goodwill and other special items.
For fiscal 1999, LSI reported $2.09 billion in revenue, up 38% over the $1.52 billion reported for 1998. During 1999, profits grew at more than double the rate of revenue, and cash reserves swelled to $661 million.
Net income for the year was $174 million before goodwill, or $1.12 per diluted share. LSI also announced a two-for-one split of its common stock, effective Feb. 4. Distribution of the new shares will occur on Feb. 16, increasing the number of outstanding shares to 300 million.