LSI beats analyst views in 2Q, shares jump

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MILPITAS, Calif. (AP) — LSI Corp., which makes storage and networking chips, posted second-quarter results Wednesday that beat analyst expectations, and the company’s outlook for third-quarter revenue was well above Wall Street views.

LSI shares climbed 12 percent in extended trading.

For the quarter that ended July 3, LSI earned $28 million, or 5 cents per share, from continuing operations. Including a $265 million contribution from the external storage systems business it sold to NetApp in May, LSI’s overall net income totaled $293.8 million, or 48 cents per share, compared with $7.4 million, or a penny per share, a year earlier.

Excluding one-time items, the company’s net income from continuing operations totaled 10 cents per share. Overall adjusted net income came in at 13 cents per share, which is 3 cents higher than what analysts polled by FactSet expected.

Revenue from continuing operations climbed 6 percent to $501 million. Analysts were expecting $482.8 million.

The company gave outlook for third-quarter net income from continuing operations of a penny to 11 cents per share, or 11 cents to 17 cents from continuing operations when excluding one-time items, on $535 million to $565 million in revenue.

Analysts are expecting adjusted net income of 12 cents per share on $511 million in revenue.

Shares of LSI rose 75 cents to $7.19 in extended trading. The stock finished regular trading down 25 cents, or 3.7 percent, at $6.44.