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EXHIBIT 99.1
FOR IMMEDIATE RELEASE October 24, 2000
CONTACTS:
INVESTOR RELATIONS MEDIA RELATIONS
Diana Matley Kevin Brett
408-433-4365 408-433-7150
[email protected] [email protected]
CC00-48
LSI LOGIC REPORTS RECORD Q3 REVENUES AND PROFITS
- THIRD QUARTER 2000 HIGHLIGHTS -
The LSI Logic 2000 third quarter news release follows this summary:
- Record Q3 revenues of $728 million; up 13 percent sequentially from Q2.
- Eleventh quarter of sequential revenue growth.
- Per share EBG* was 33 cents; First Call consensus estimate, 32 cents.
- Record Q3 EBG net income of $114 million, more than double (108 percent) the
Q3 1999 EBG net income of $55 million.
- Cash and short-term investments grew by $142 million to $1.1 billion.
- Record Q3 bookings.
* Earnings before goodwill amortization and special items.
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FAST GROWING COMMUNICATIONS MARKETS DRIVE RECORD LSI LOGIC REVENUES AND BOOKINGS
Communications represents more than 50 percent of
LSI Logic revenues; Cash and short-term
investments exceed $1 billion for first time
Milpitas, California - LSI Logic Corporation (NYSE:LSI) today reported record
2000 third quarter revenues of $728 million, a 13 percent sequential increase
over the second quarter and a 35 percent increase over the $540 million posted
in the third quarter of 1999.
Net income before amortization of goodwill and other special items was $114
million or 33 cents a diluted share, compared to $55 million or 17 cents a
diluted share in the third quarter of 1999. The third quarter diluted share
figures have been adjusted to reflect last February's two-for-one common stock
split.
The improvement in profits stems from higher revenues and gross margin
expansion. The company's gross margin improved for the sixth consecutive quarter
to 43.3 percent. Cash and short-term investments exceeded $1 billion for the
first time, growing by $142 million to $1.1 billion. During the third quarter,
LSI Logic spent $49 million to purchase 1.5 million shares of the company's
common stock.
"We have strong momentum heading into 2001 based upon our communications focus,
record bookings and expanded manufacturing capacity," said Wilfred J. Corrigan,
LSI Logic chairman and chief executive officer.
"Communications chip sales now represent more than 50 percent of LSI Logic's
total revenues," said John Daane, LSI Logic executive vice president of the
Communications Products Group. "The company anticipates that communications chip
revenues will grow 65 percent or more this year."
LSI LOGIC BUSINESS OUTLOOK
LSI Logic expects 2000 Q4 revenue to be up approximately 10 percent sequentially
from the $728 million reported in the third quarter.
The company anticipates reporting fourth quarter earnings of 36 cents a diluted
share.
Gross margin is expected to be approximately 44 percent in the fourth quarter.
Recurring investment income will be around $15 million in the fourth quarter,
approximately the same amount as realized in the second and third quarters.
The fourth quarter tax rate is expected to be 25 percent.
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Capital spending for 2000 is anticipated to be approximately $600 million.
Fourth quarter depreciation is projected to be approximately $90 million.
LSI LOGIC HIGHLIGHTS
- LSI Logic and Advanced Micro Devices announced an agreement to develop
advanced solutions, employing AMD's flash memory and LSI Logic's baseband
technology, for the fast-growing CDMA handset market.
http://www.lsilogic.com/news/product_news/pr20001023.html
- LSI Logic announced the licensing of its ZSP(TM) 400 digital signal processor
(DSP) core to Virata Corporation for use in Voice-over-Internet Protocol (VoIP)
and digital subscriber line (DSL) applications.
http://www.lsilogic.com/news/corporate_news/cr20001016.html
- LSI Logic completed the $420 million strategic acquisition of DataPath
Systems, Inc., a leading provider of standard product solutions in the rapidly
growing broadband communications market.
http://www.lsilogic.com/news/corporate_news/cr20000717.html
- The company announced the availability of the industry's first synthesized ARM
processor core to reach 200MHz. The addition of the ARM processor core extended
LSI Logic's library of CoreWare products.
http://www.lsilogic.com/news/product_news/pr20000926.html
- LSI Logic announced its 0.18-micron GigaBlaze transceiver core designed to
support the emerging InfiniBand interconnect standard. InfiniBand developers
will be able to use LSI Logic's GigaBlaze transceiver technology to address the
rising demand for reliable, high-bandwidth connections to the Internet.
http://www.lsilogic.com/news/product_news/pr20000828.html
- The company unveiled its latest innovative organic laminate flip chip package,
offering LSI Logic customers significant improvements in thermal and electrical
performance over most advanced wire-bond packages.
http://www.lsilogic.com/news/product_news/pr20000814.html
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LSI LOGIC CONFERENCE CALL INFORMATION: LSI Logic will hold a conference call
today at 1:30 p.m. PDT to discuss third quarter financial results. The access
number is 1-212-346-6501. The call will be webcast realtime through
www.StreetFusion.com. A replay of the call will be available today at
approximately 4 p.m. PDT and will be available for 48 hours. The number is
1-800-633-8284, access code 16227865. The replay will also be available over the
Internet at the StreetFusion website. The StreetFusion replay will be available
until October 31.
SAFE HARBOR FOR FORWARD LOOKING STATEMENTS: The statements by LSI Logic
management and the above statements regarding future bookings, earnings, gross
margins, gains from the sale of equity securities, tax rates, capital spending
estimates, depreciation and future revenues made in this news release include
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended and Section 21E of the Securities and Exchange Act of
1934, as amended. The company's actual results in future periods may be
materially different from any performance suggested in this news release. Risks
and uncertainties to which the company is subject may include, but may not
necessarily be limited to fluctuations in the timing and volumes of customer
demand, particularly for applications where rapid growth is anticipated, and the
company's achievement of revenue objectives and other financial targets. Other
risks and uncertainties include, but are not necessarily limited to the timing
and success of new product introductions, the continued availability of
appropriate levels of manufacturing capacity and the realization of benefits
from the company's strategic relationships and investments. The extent to which
the company's plans for future cost reductions are realized may also impact its
future performance. The company operates in an industry sector where securities'
values are highly volatile and may be influenced by economic and other factors
beyond the company's control. In the context of forward-looking information
provided in this news release, reference is made to the discussion of risk
factors detailed in the company's filings from time to time with the Securities
and Exchange Commission, including but not limited to filings made during the
past 12 months.
LSI Logic Corporation (NYSE:LSI) is a leading supplier of communications chips
for broadband, data networking, wireless and set-top box applications. In
addition, the company provides chips and boards for network computing and
supplies storage network solutions for the enterprise. LSI Logic is
headquartered at 1551 McCarthy Boulevard, Milpitas, CA 95035, 408-433-8000,
http://www.lsilogic.com. # # #
Editor's Notes:
1. All LSI Logic news releases (financial, acquisitions, manufacturing,
products, technology etc.) are issued exclusively by PR Newswire and are
immediately thereafter posted on the company's external website,
http://www.lsilogic.com.
2. The LSI Logic logo design is a registered trademark of LSI Logic
Corporation.
3. All other brand or product names may be trademarks or registered trademarks
of their respective companies.
