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LSI Logic lowers forecast; blames storage, game markets

Posted: 15 Jul 2004 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor? storage components? video game consoles?

LSI Logic Corp. on Monday (July 12, 2004) lowered its second quarter revenue projections, citing slower demand for semiconductors in storage components and video game consoles. LSI Logic said it expects to report approximately $448 million in consolidated second quarter revenues, a 10-percent increase over second quarter 2003 results. The company earlier forecasted second quarter revenues in the range of $455 million to $470 million.

The company anticipates that its second quarter earnings per share will be in the range of 1- to 3 cents per diluted share on a GAAP basis, consistent with previous guidance.

The chip maker also expects that its second quarter earnings per share, excluding special items, will be in the range of 6- to 8 cents per diluted share, consistent with previous guidance. LSI Logic anticipates that its second quarter gross margin will be approximately 46 percent, compared to the previous guidance of 45 to 46 percent.

"Market analyst forecasts for the global semiconductor industry foresee a positive growth year in 2004," Wilfred J. Corrigan, LSI Logic chairman and CEO, said in a statement. "We are anticipating the second half of the year will be stronger than the first half of the year."

As reported, a series of conflicting data points in the semiconductor market point to a summer slump and modest growth rates in the overall IC business, according to a report from American Technology Research Inc.

Two weeks ago, several chipmakers, including Amkor, Exar, ISSI, Sipex and Trident, separately lowered their quarterly forecasts despite what appears to be a robust IC recovery. Last week, Conexant Systems Inc. lowered its forecast due to falling prices in the wireless local area networking market (see July 9 story).

- Silicon Strategies

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