COMPANY PRESS RELEASE: LSI Logic Corporation has reported $406 million in revenues in the 2001 fourth quarter, a 2.3 percent increase over the $397 million reported in the third quarter and a 46 percent decrease from the $751 million reported in the fourth quarter of 2000.
Pro forma 2001 fourth quarter net loss was $74 million or 20 cents a diluted share, a $30 million improvement over the pro forma third quarter net loss of $104 million or 29 cents a diluted share. The company reported pro forma net income of $116 million or 34 cents a diluted share in the fourth quarter of 2000. Cash and short-term investments increased $239 million in the fourth quarter to $1.01 billion.
The combination of a sequential revenue increase and reduced operating expenses enabled LSI Logic to meet its guidance for top-line growth and exceed expectations for improvement of its bottom line in the fourth quarter, said Wilfred J. Corrigan, LSI Logic chairman and chief executive officer. We have already taken significant steps this month to reduce our operating expenses, thus lowering our break-even point.
We anticipate growth in our communications, storage components and storage systems businesses in the first quarter. Overall, we expect modest sequential revenue growth in the first quarter, despite normal seasonality in our consumer electronics business. We also anticipate returning to profitability in the second half of 2002.
LSI Logic recorded 2001 revenues of $1.78 billion, a 35 percent decrease from the $2.74 billion in 2000.
Pro forma 2001 net loss, before amortization of goodwill and other special
items, was $190 million or a loss of 54 cents a diluted share. Pro forma 2000
net income was $417 million or $1.21 a diluted share. Cash and short-term
investments decreased slightly to $1.01 billion at the end of 2001 from the
$1.13 billion at the end of 2000.
We improved both our top-line and bottom-line performance and we have
been aggressive about reducing costs, said Bryon Look, LSI Logic executive
vice president and chief financial officer. We are targeting to generate
positive cash flow in the second half of the year. We are positioned to fully
capitalize on the coming recovery of our targeted communications, consumer and