MILPITAS, Calif. -- LSI Logic Corp. today reported sales of $517 million in its first quarter ended March 31, a 16% decline from the like period a year ago and a 31% drop sequentially.
Net income, before amortization of goodwill and other special items, was $9.5 million, or 3 cents a share, compared to $116 million, or 34 cents a share, a year ago. The company was expected to earn 3-to-4 cents a share, according to First Call/Thomson Financial.
In the fourth quarter of 2000, LSI Logic reported a profit of $88 million, or 26 cents a diluted share in the first quarter of 2000.
"Our first quarter financial results were impacted by the abrupt decline of the U.S. economy, weakened end-demand and the widespread accumulation of inventory in the supply chain," said Wilfred J. Corrigan, LSI Logic chairman and chief executive. "While our visibility is limited, there are indicators that point to the resumption of revenue growth in the second half of the year," he said.
Recently, LSI Logic said it would take a $120-to-$150 million charge for fixed asset write-downs, severance, and other expenses associated with the closure of the company's 8-inch wafer fab in Colorado Springs.
LSI Logic also expects its sales for the second quarter to decline approximately 10-15% sequentially from the $517 million reported in the first period. The company anticipates reporting a second quarter loss of 7 cents a diluted share.