LSI Logic is to chop 11% of its workforce after releasing below par third quarter figures and setting fourth guidance that undershoots analysts’ expectations.
The storage and comms chip vendor turned in revenues of $380.2 million in the quarter ending September 30, down 16% on the year. Operating loss was $17.3 million, compared to $23.5 million last year, while net loss was $282 million, compared to $48.6 million last year. Excluding special items, including $206 million for Gresham manufacturing facility asset impairment, the net loss was $25.2 million, compared to last year’s $17 million profit.
This resulted in a loss per share, excluding the special items, of $0.07. Analysts had expected a loss of $0.05 per share on revenues of $382.7 million.
The vendor is taking rapid action to cut its costs, and will cut around 510 workers. LSI Logic said it would also realign its R&D structure, as part of a plan to return to profitable revenue growth in the coming year.
For the fourth quarter, LSI Logic expects revenue of $360 million to $390 million, with a net loss of $0.57 to $0.54 per share, or $0.05 to $0.02 excluding special items. Analysts had been expecting a loss of $0.03 per share on revenue of $397.5 million.
For the year to date, revenues are up 4% to $1.3 billion, while net loss stands at $266 million compared to a loss a year ago of $316 million. Excluding special items, net income to date stands at $27.6 million, compared to a loss last year of $40.2 million.