SAN JOSE, Calif. LSI Logic Corp. on Wednesday (Jan. 26) reported fourth quarter 2004 revenues of $420 million, a sequential increase of 10 percent compared to the $380 million reported in the third quarter of 2004, and a 9 percent decrease compared to the $463 million reported in the fourth quarter of 2003.
Fourth quarter 2004 GAAP net loss was $197 million, or $0.51 per diluted share, including a $178 million non-cash charge associated with the company's Gresham, Ore. fab.
In October, LSI Logic (Milpitas, Calif.) cut 510 positions, approximately 11 percent of its workforce, and took a $383 million impairment charge for its Oregon fab. At the time, LSI Logic officials insisted that the company is not shutting down the fab. Instead, the company is taking an accounting charge that relates to "when the book value exceeds the cash flow" for the fab, according to LSI Logic (see Oct. 27, 2004 story).
The fourth quarter GAAP result compares to third quarter GAAP net loss of $282 million, or $0.73 per diluted share, including a $206 million non-cash charge associated with the company's Gresham manufacturing facility. Fourth quarter 2003 GAAP net income was $8 million, or $0.02 per diluted share.
LSI Logic recorded 2004 revenues of $1.70 billion, compared to $1.69 billion in 2003. GAAP 2004 net loss was $464 million, or $1.21 per diluted share, which includes the $384 million non-cash charge associated with the Gresham manufacturing facility. The 2003 GAAP net loss was $309 million, or 82 cents per diluted share.
"In Q4, we saw sequential growth in storage systems, storage components and consumer products," said Wilfred J. Corrigan, LSI Logic chairman and chief executive, in a statement. "The adjustment in our customers' supply chain inventory that began in Q2 appears to be substantially over in storage systems, storage components and consumer products. We are anticipating a small seasonal decline in the first quarter with revenues in the range of $400 million to $415 million."
It also projects a loss of $0.01-to-$0.04. Capital spending is projected to be around $20 million in the first quarter, and approximately $80 million in total for 2005.