LSI Shares Advance After First-Quarter Forecast Beats Analysts’ Estimates
LSI Corp. (LSI), a maker of chips used in computer disk drives, rose as much as 10 percent in late trading yesterday after forecasting first-quarter revenue that surpassed analysts’ estimates.
First-quarter sales from continuing operations will be $550 million to $590 million, the Milpitas, California-based company said yesterday in a statement. That compares with the $508.7 million average of estimates compiled by Bloomberg.
The forecast reflects market-share gains and new orders from large customers, Chief Executive Officer Abhi Talwalkar said in the statement. Demand for LSI’s technology, which handles the transfer of data between disks and computers, is climbing as customers upgrade mobile networks and data centers, used to handle cloud computing, he said.
“We enter 2012 building on strong business momentum and are accelerating our revenue growth,” Talwalkar said.
LSI rose to as high as $7.80 in extended trading yesterday, after closing at $7.08 on the New York Stock Exchange. The shares have climbed 19 percent this year.
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