SAN FRANCISCO LSI Logic Corp. Wednesday (Jan. 25) reported a return to profitability on a 21 percent year-to-year increase in fourth quarter 2005 revenue.
LSI (Milpitas, Calif.) reported a net income for the quarter of $38 million, or 9 cents per share, based on generally accepted accounting principles (GAAP), a sharp turnaround from net losses of $197 million for the fourth quarter of 2004 and $73 million for the third quarter of 2005. The company's third quarter 2005 results included a $91 million restructuring charge associated with the planned sale of its wafer fab in Gresham, Ore.
LSI reported fourth quarter 2005 revenue of $506 million, up 21 percent from $420 million in the same period of 2004 and a sequential increase of 5 percent compared to the $482 million reported in the third quarter of 2005.
LSI reported 2005 revenue of $1.92 billion, up 13 percent from $1.70 billion in 2004. The company reported a GAAP net loss of $6 million, or 1 cent per share, including the $91 million Gresham charge, a substantial improvement form the $464 million GAAP net loss reported for 2004.
The company said it generated $63 million in cash from operations in the fourth quarter of 2005, the 15th consecutive quarter of positive operating cash flow.
Abhi Talwalkar, LSI president and CEO, said through a statement that the company enjoyed strong 2005 performance from its Storage and Consumer businesses, capped off by record fourth quarter and full year revenue for the Engenio storage group.
"Revenues from our storage semiconductors grew in the fourth quarter and we extended our lead in SAS [serial attached SCSI] by introducing a number of new products," Talwalkar said. "Consumer revenues met our fourth quarter expectations and grew 34 percent for the full year 2005."
LSI did not provide guidance for the current quarter.
"Entering 2006, our strong position in enterprise storage and the industry-projected growth of consumer electronics products are expected to be the primary growth drivers for the company," Talwalkar said. We are well positioned to capitalize on these opportunities with our leadership technology."