LSI Logic Corp. today reported first quarter revenues of $517 million, a 31% decrease from the $751 million reported in thefourth quarter, and 16% lower than the $615 million recorded in the first quarter of 2000.
First quarter 2001 net income, before amortization of goodwill and other special items (EBG), was $9.5 million or 3 cents a diluted share, compared to $116 million or 34 cents a diluted share in the fourth quarter, and $88 million or 26 cents a diluted share in the first quarter of 2000.
The company said it expects 2001 Q2 revenues to decline approximately 10-15% sequentially from the $517 million reported in the first quarter. It anticipates reporting a second quarter loss of 7 cents a diluted share on an EBG basis.
Second quarter gross margin is expected to be approximately 38%.
Consensus estimates by analysts surveyed by First Call were for a 3 cents profit for the first quarter, and a 1 cent profit for the second quarter.
"While our visibility is limited, there are indicators that point to the resumption of revenue growth in the second half of the year," said Wilf Corrigan, LSI Logic chairman and chief executive officer, in a prepared statement.
Bryon Look, LSI Logic executive vice president and chief financial officer, said the company will take a $120 million to $150 million charge for fixed asset write-downs, severance, direct exit costs and other expenses associated with the August closure of the company's Colorado Springs manufacturing facility. The restructuring charge will be incurred in the second quarter, and other related charges will be recorded in the second and third quarters of 2001.
LSI Logic also said it learned today that the Federal Trade Commission has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act with respect to its exchange offer for all of the outstanding shares of C-Cube Microsystems' common stock. In addition, LSI Logic anticipates that its registration statement filed in connection with the exchange offer will be declared effective by the Securities and Exchange Commission on April 26.
The exchange offer commenced on April 13, and is scheduled to expire at midnight EDT on May 10, unless extended.
Also on Tuesday, C-Cube Microsystems reported first-quarter results that topped forecasts as sales fell 18% amid a decline in demand for semiconductors.
Milpitas, Calif.-based C-Cube said income from continuing operations fell to $1.21 million, or 2 cents a share, from $7.08 million, or 14 cents, a year ago. Sales fell to $50.1 million from $61 million.
Analysts had forecast the company to earn 1 cent to 2 cents a share, with the consensus average forecast at one penny, according to Thomson Financial/First Call. Sales were expected to be $51.5 million, based on estimates from two brokerages.
Reuters contributed to this article.