LSI Corp., the maker of chips used in computer disk drives, jumped to the highest level in almost five years after raising its first-quarter sales prediction range, citing a stronger-than-expected recovery in the industry.
First-quarter sales of $585 million to $615 million will deliver a profit of 6 cents to 10 cents a share, the Milpitas, California-based company said in a statement. LSI had predicted sales of $550 million to $590 million.
The higher forecast reflects a rebound in the market for hard disk drives, the main storage in personal computers, and increasing shipments of semiconductors that control new drives composed of memory chips, the company said.
LSI rose 60 cents, or 7 percent, to $9.14 at the close of trading in New York, its highest level since April 25, 2007. The stock has gained 54 percent this year.
Analysts predicted sales of $571.4 million and profit of 0.4 cent a share, the average of estimates compiled by Bloomberg.