LSI To Cut 900 Jobs, Lowers Q2 Guidance

 |  Includes: AGR-OLD, LSI-OLD
by: Eric Savitz

LSI (NASDAQ:LSI-OLD) late Wednesday announced that it will cut 900 jobs, or about 13% of its worldwide workforce, in a move related in part to its acquisition of Agere (AGR-OLD). The chip maker also trimmed its guidance for the second quarter.

LSI now sees revenue of $650 million to $670 million, with non-GAAP EPS between a loss of 3 cents a share and breakeven. The GAAP loss for the quarter is expected to be between 43 cents and 52 cents a share.

The company previously had forecast revenue for the quarter of $715 million to $745 million, a non-GAAP profit of break even to 3 cents and a GAAP loss of 40-49 cents a share.

LSI blamed the shortfall on “greater than anticipated softness in our businesses.”

After hours, LSI fell 44 cents, or 5%, to $8.20.

LSI 1-yr chart:
lsi june 07