Semiconductors maker LSI Corp. (LSI), Wednesday reported a rise in profit for the second quarter, helped primarily by higher revenues and improved margins. Quarterly earnings came in line with analysts' estimates, while revenues fell short. Looking ahead, the company provided its outlook for the third quarter, with earnings expected to come in line with Street view and revenues expected below estimates. The outlook did not please investors too much with LSI shares dropping over 8% in after hours trade.
The Milpitas, California-based company's net income for the second quarter was $7.43 million or $0.01 per share, compared to a net loss of $61.48 million or $0.09 per share in the year-ago quarter.
Second quarter GAAP net income included a net charge of $64 million from special items, consisting primarily of $40 million amortization of acquisition-related items, $18 million of stock-based compensation expense and $5 million of net restructuring and other items.
Excluding the items, second quarter non-GAAP net income was $71.23 million or $0.11 per share. Prior-year net income was $7.07 million or $0.01 per share.
On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.11 per share for the quarter. Analysts estimates typically exclude special items.
Revenues for the quarter increased 23% to $639.40 million from $520.66 million in the previous year. Analysts expected revenues of $654.44 million for the quarter.
Gross profit for the quarter was $275.63 million, compared to $180.l89 million last year. Gross margin improved to 43.1% from 34.7% in the previous year.
Interest expense declined to $1.71 million from $6.86 million a year ago.
Abhi Talwalkar, LSI president and chief executive officer, said, "Despite some isolated customer inventory adjustments late in the quarter that modestly affected our sequential revenue growth, tight operating expense control and higher gross margins enabled us to deliver a solid bottom-line performance."
Cash and short-term investments totaled approximately $670 million at quarter end. During the quarter, LSI repaid $350 million of outstanding convertible notes, and is debt free. The company also completed second-quarter purchases of approximately 10 million shares of its common stock for approximately $55 million under its $250 million share repurchase program.
Looking ahead, the company expects third quarter results of a loss of $0.03 per share to earnings of $0.06 per share. Non-GAAP net income is expected to be in the range of $0.08 per share to $0.14 per share and revenues in the range of $625 million - $655 million for the third quarter.
Analysts currently expect earnings of $0.13 per share, on revenues of $694.97 million for third quarter.
Amongst others in the industry, Intel Corp. (INTC), recently reported $2.9 billion second quarter profit, helped by higher revenue and sharply improved margins.
LSI closed Wednesday's regular trading at $4.74, down $0.23 or 4.63%, on a volume of 9.31 million shares on the NYSE. In after hours, the stock further declined $0.40 or 8.44%, trading at $4.34. In the past 52-week period, the stock trended in a range of $4.42 - $6.73, with a 3-month average volume of 9.80 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.