MILPITAS, Calif. -- LSI Corporation (NYSE: LSI - News) today reported first quarter 2007 revenues of $465 million, compared to $476 million in the first quarter of 2006 and $524 million in the fourth quarter of 2006. LSI first quarter results do not include the results of the former Agere Systems, as the merger transaction occurred April 2, after the first quarter's close.
First quarter 2007 GAAP* net income was $30 million or 7 cents per diluted share, compared to first quarter 2006 GAAP net income of $13 million or 3 cents per diluted share. First quarter 2007 GAAP results compare to fourth quarter 2006 GAAP net income of $59 million or 14 cents per diluted share. First quarter 2007 GAAP net income included $11.2 million of stock-based compensation expense, and a net charge of $3.3 million from special items, acquisition-related amortization, restructuring and their related tax effect.
First quarter 2007 non-GAAP** net income was $44.3 million or 11 cents per diluted share, compared to first quarter 2006 non-GAAP net income of $40 million or 10 cents per diluted share. Fourth quarter 2006 non-GAAP net income was $75 million or 18 cents per diluted share.
Cash and short-term investments totaled more than $1 billion at quarter end. As previously announced, the LSI board has authorized the repurchase of up to $500 million of the company's common stock. LSI expects to begin repurchases in the near future.
"LSI had solid financial results in a challenging quarter," said Abhi Talwalkar, LSI president and chief executive officer. "Our first quarter business was driven by continued strong sales of storage semiconductor and system products, including a faster than expected ramping of our entry level SAS storage systems for small and medium businesses. I am also pleased with our rapid progress in integrating with Agere and identifying opportunities for profitable growth. I am confident that the competitive advantages created by this merger will yield meaningful results in the coming quarters."