System-on-a-chip semiconductor firm, LSI Logic Corp, reported third-quarter net profits of $54.76m or 35 cents a share, yesterday, on sales up 36% on the year-ago at $539.96m – to trump analysts’ expectations by 5 cents a share.
Milpitas, California-based LSI’s net profit for the quarter to September 30 topped the $22.87m earned in the year-ago period by almost 140%. Revenue for the quarter marked the Milpitas, California-based firm’s seventh quarter of sequential sales growth. LSI improved its gross profit margin to 39.2% from 37.2% in the second quarter, while operating expenses, excluding goodwill amortization, declined to 25.7% of total revenues from 27.5% in the preceding quarter.
Executives said the earthquake in chip manufacturing center, Taiwan, during the quarter had a negligible effect on business. The firm pointed out that it maintained manufacturing facilities in Oregon, Colorado and California in the US and Japan to reduce its vulnerability to any one production center being knocked out
The firm said growth of the internet infrastructure drove demand for its storage systems products during the quarter and that it had also witnessed strong demand for its system-on-a-chip for set-top boxes, video games and DVD players.
