EXHIBIT 99.1
FOR IMMEDIATE RELEASE JANUARY 22, 2003
INVESTOR RELATIONS CONTACT: MEDIA RELATIONS CONTACT:
DIANA MATLEY KEVIN BRETT
408-433-4365 408-433-7150
diana@lsil.com kbrett@lsil.com
CC03-21
LSI LOGIC REPORTS Q4 AND 2002 FINANCIAL RESULTS
The LSI Logic 2002/fourth quarter news release follows this summary
FOURTH QUARTER NEWS RELEASE HIGHLIGHTS
- - Revenues of $480 million, consistent with previous guidance
- - Revenues increased 18 percent over the $406 million in Q4 2001.
- - Pro forma* profitability for second sequential quarter.
- - Per share pro forma* net income of 1 cent, meets consensus estimate.
- - GAAP** net loss of 8 cents a diluted share.
- - Generated positive operating cash flow for third consecutive quarter.
* Earnings before acquisition-related amortization and other special items.
** Generally Accepted Accounting Principles
LSI LOGIC GENERATES POSITIVE OPERATING CASH FLOW FOR 3RD CONSECUTIVE QTR;
REVENUES UP 18% Q4 2001- Q4 2002
MILPITAS, CALIFORNIA - LSI Logic Corporation (NYSE: LSI) today reported revenues
of $480 million in the fourth quarter of 2002, a 1.5 percent sequential decrease
compared to the $487 million reported in the third quarter, and an increase of
18 percent over the $406 million reported in the fourth quarter of 2001.
The 2002 fourth quarter GAAP** net loss was $31 million or 8 cents a diluted
share. The third quarter net loss was $28 million or 7 cents a diluted share.
The company reported a GAAP net loss of $250 million or 68 cents a diluted share
in the fourth quarter of 2001.
Pro forma* 2002 fourth quarter net income was $5 million or 1 cent a diluted
share. Pro forma third quarter 2002 net income was $17 million or 4 cents a
share. The company reported a pro forma net loss of $74 million or 20 cents a
diluted share in the fourth quarter of 2001.
Cash and short-term investments increased $47 million to $990 million at the end
of the fourth quarter. During the quarter, the company repurchased $48 million
of convertible notes, reducing its outstanding convertible debt.
"After generating 11 percent sequential revenue growth in the third quarter, our
order input rate slowed in the fourth quarter," said Wilfred Corrigan, LSI Logic
chairman and chief executive officer. "The strength of our two storage
businesses was offset by declines in Consumer and Communications. As a result of
this lower fourth quarter order-input rate, we are projecting first quarter
revenues in the range of $370 million to $390 million. Entering 2003, our
outlook is for the first quarter to be the low point for revenues, and for the
second quarter to be up substantially.
"Consumer, Storage Components and Storage Systems are expected to be the drivers
for the second quarter improvement. The Communications sector has the least
visibility, but generally we believe the enterprise sector is stabilizing while
the WAN sector is unlikely to demonstrate improvement until late 2003 or 2004.
We expect our overall business will regain momentum in the second quarter and
return to pro forma profitability in the third quarter."
LSI Logic recorded 2002 revenues of $1.82 billion, a 2 percent increase over the
$1.78 billion in 2001. The GAAP 2002 net loss was $292 million or 79 cents a
diluted share. The Pro Forma 2002 net loss was $42 million or 11 cents a diluted
share. "We are generating positive operating cash flow, controlling operating
expenses and reducing our long-term debt," said Bryon Look, LSI Logic chief
financial officer.
** Generally Accepted Accounting Principles
* Earnings before acquisition-related amortization and other special items.
LSI LOGIC BUSINESS OUTLOOK
LSI Logic expects Q1 2003 revenues to be in the range of $370 million to $390
million.
The company anticipates reporting a pro forma first quarter net loss of about
18-20 cents a diluted share and a gross margin of approximately 30-32 percent.
Operating expenses are expected to be in the range of $175 million to $180
million.
The first quarter pro forma tax provision is expected to be a charge of
approximately $6 million.
Capital spending is anticipated to be under $20 million in the first quarter and
less than $100 million for 2003.
First quarter depreciation is projected to be about $60 million.
The first quarter diluted common share count is expected to be approximately 373
million.
NOTE: The company's financial guidance will be limited to the comments made on
today's public conference call and contained in the Business Outlook section of
this news release.
LSI LOGIC BUSINESS, TECHNOLOGY AND PRODUCT ANNOUNCEMENTS
- - LSI Logic introduced StreamSlice(TM), the first offering of its RapidChip(TM)
configurable product family. Featuring 20 gigabits per second of full-duplex
throughput, StreamSlice targets high-end switches, routers and other
communications applications.
http://www.lsilogic.com/news/product_news/pr20030120a.html
- - Korea-based LG Electronics selected the LSI Logic DiMeNsion(TM) 8600
(DMN-8600) single-chip DVD recorder system processor for its next-generation DVD
recorder products. http://www.lsilogic.com/news/product_news/pr20030114.html
- - LSI Logic announced a Serial Attached SCSI (SAS) co-development product plan
that includes leading disk drive manufacturers Fujitsu, Maxtor and Seagate.
Using its Fusion-MPT architecture LSI Logic's SAS product development assures a
first-to-market product path for customers and hard disk drive partners and
their customers. http://www.lsilogic.com/news/product_news/pr20030120c.html
- - LSI Logic announced the DoMiNoFX(TM) brand representing a "Visibly Superior"
digital media processing technology that provides consumers with assured
high-quality digital entertainment devices.
http://www.lsilogic.com/news/product_news/pr20030108a.html
- - LSI Logic Corporation introduced the PCI-X 2.0 physical layer (PHY) interface
core, which includes a multi-functional I/O buffer and the industry's first PHY
hardmacro, the LSI Logic Xoom(TM) core. The core, an addition to the
CoreWare(R)design program, supports the emerging PCI-X 2.0 266 DDR standard
and targets the server and storage markets.
http://www.lsilogic.com/news/product_news/pr20030120d.html
- - LSI Logic Corporation announced an agreement to supply its high-performance
Ultra320 PCI RAID storage adapters to NEC Corporation, solidifying its position
as the premier provider of RAID technology for Japan's market leading server
manufacturer. http://www.lsilogic.com/news/product_news/pr20021219.html
- - LSI Logic Corporation announced the industry's first single-chip hard disk
drive (HDD) and DVD recorder processor, the DiMeNsion(TM) 8650 (DMN-8650), for
use in dual-drive digital recorders. The new processor enables the time-shift of
live TV, enhanced archiving to DVD disks, and full support for DV camcorders.
http://www.lsilogic.com/news/product_news/pr20030106.html
- - Lite-On Information Technology Corporation selected the LSI Logic DVD&MORE(TM)
(DVD and Multimedia Optical Recording Entertainment) manufacturing kit as the
basis for its newest DVD & PLUS Combo Series product, LVR-1001.
http://www.lsilogic.com/news/product_news/pr20021217.html
- - LSI Logic Corporation enhanced its CoreWare(R) design program by introducing
two new cores that support the emerging PCI Express standard. The company's new
Link and Physical Layer (PHY) interface cores provide customers with faster
time-to-market for their next generation server, storage and communication
products. The announcement marks another level of innovation in LSI Logic's
leading physical (PHY) layer and serial protocol expertise.
http://www.lsilogic.com/news/product_news/pr20030120b.html
- - Vianix selected the LSI Logic ZSP400(TM) DSP to power its Managed Audio Sound
Compression - MASC(TM) technology for embedded applications. The selection
expands the market for LSI Logic's open architecture ZSP(TM) digital signal
processor (DSP) cores to include a full range of digital voice storage and
transmission applications.
http://www.lsilogic.com/news/product_news/pr20021211.html
- - LSI Logic Corporation announced two new single-chip multi-format audio/video
codecs, DMN-8100 and DMN-8150, allowing consumers to capture video content from
any analog/digital camcorder, VCR or TV tuner and send it to a PC over a USB 2.0
connection. http://www.lsilogic.com/news/product_news/pr20021118c.html
- - LSI Logic Corporation announced the availability of its Physical RTL
Optimization (PRO) flow, developed to identify physical design issues early in
complex system-on-a-chip (SoC) design cycles. LSI Logic is first in the industry
to directly link routing and congestion problems in physical design back to the
RTL code, allowing engineers to quickly and predictably resolve major physical
design issues at the RTL stage.
http://www.lsilogic.com/news/product_news/pr20021118b.html
- - LSI Logic introduced the LSI5201, a versatile, dual-port 1 Gigabit per second
iSCSI host bus adapter (HBA). With the addition of the LSI5201, LSI Logic offers
high-performance and proven interoperable iSCSI, SCSI and Fibre Channel storage
adapter solutions for storage area networks (SANs).
http://www.lsilogic.com/news/product_news/pr20021118a.html
- - LSI Logic and Emuzed are providing PC manufacturers with the technology needed
to enable TV, PVR (personal video recorder) and video capture functionalities.
LSI Logic is providing its DVxplore(R) codec processor for Emuzed's "Maui" PCI
PVR cards to enable cutting-edge video compression.
http://www.lsilogic.com/news/product_news/pr20021106.html
- - LSI Logic announced the availability of its MegaRAID ATA 133-2 RAID storage
adapter, designed to increase performance and reliability of storage
environments. http://www.lsilogic.com/news/product_news/pr20021101.html
LSI LOGIC CONFERENCE CALL INFORMATION
LSI Logic will hold a conference call today at 2 p.m. PST to discuss 2002 and
fourth quarter financial results. The number is 1-203-748-8964. Internet users
can access the conference call by visiting
http://www.firstcallevents.com/service/ajwz371638311gf12.html or
http://www.lsilogic.com/investors/. A replay of the call will be available today
at approximately 5 p.m. PST and will be available for 48 hours. The number is
1-800-945-1517. (International, 1-402-220-0676). The webcast replay will be
available until January 29.
SAFE HARBOR FOR FORWARD LOOKING STATEMENTS: This news release and the statements
by LSI Logic management include forward-looking statements that may involve a
number of risks and uncertainties. Readers are cautioned that these
forward-looking statements are only predictions and may differ materially from
the actual future events or results. Readers are referred to the documents filed
by LSI Logic with the SEC, and specifically the most recent reports on Form
10-K, 10-Q and 8-K. In the context of forward-looking information, reference is
made to the discussion of risk factors described in the company's SEC reports
filed during the past 12 months. Forward-looking statements include projections
of growth in the communications, consumer, storage components and storage
systems businesses, estimates of revenue growth, earnings, gross margins, tax
provisions, capital spending, depreciation and common share count made in this
news release. The company's actual results in future periods may be materially
different from any performance suggested in this news release. Risks and
uncertainties to which the company is subject include, but are not necessarily
limited to fluctuations in the timing and
volumes of customer demand, the rate of depletion of customer inventory buildup,
and the company's achievement of revenue objectives and other financial targets.
Other risks and uncertainties that may affect the company's actual results
include, but are not necessarily limited to the development of news products,
the timing and success of new product introductions, the continued availability
of appropriate levels of manufacturing capacity, the realization of benefits
from the company's strategic relationships, competing technologies, products and
other competitive factors and investments and disruptions in general economic
activity due to worsening global business conditions or caused by the effects of
terrorist activities and armed conflict. The extent to which the company may not
realize the cost savings it expects from the reduction in operating expenses may
also impact its future performance. The company operates in an industry sector
where securities' values are highly volatile and may be influenced by the
cyclical nature of the industry, the unpredictability of the economy and other
factors beyond the company's control.
ABOUT LSI LOGIC
LSI Logic Corporation (NYSE: LSI) is a leading designer and manufacturer of
communications, consumer and storage semiconductors for applications that
access, interconnect and store data, voice and video. In addition, the company
supplies storage network solutions for the enterprise. LSI Logic is
headquartered at 1621 Barber Lane, Milpitas, CA 95035. http://www.lsilogic.com.
# # #
Editor's Notes:
1. All LSI Logic news releases (financial, acquisitions, manufacturing,
products, technology etc.) are issued exclusively by PR Newswire and are
immediately thereafter posted on the company's external website,
http://www.lsilogic.com.
2. The LSI Logic logo design is a registered trademark of LSI Logic Corporation.
3. All other brand or product names may be trademarks or registered trademarks
of their respective companies.
LSI LOGIC CORPORATION
PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Three Months Ended Year Ended
----------------------------- -----------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2002 2001 2002 2001
----------- ----------- ----------- -----------
Revenues $ 479,697 $ 405,830 $ 1,816,938 $ 1,784,923
----------- ----------- ----------- -----------
Costs and expenses:
Cost of revenues 298,722 277,888 1,122,696 1,160,432
Research and development 115,752 121,295 457,351 503,108
Selling, general and administrative 55,602 70,731 230,202 307,310
----------- ----------- ----------- -----------
Total costs and expenses 470,076 469,914 1,810,249 1,970,850
----------- ----------- ----------- -----------
Income/ (loss) from operations 9,621 (64,084) 6,689 (185,927)
Interest expense (10,578) (14,737) (51,977) (44,578)
Interest income and other, net 11,563 4,429 27,300 40,577
----------- ----------- ----------- -----------
Income/ (loss) before income taxes 10,606 (74,392) (17,988) (189,928)
Provision for income taxes 6,062 -- 24,250 --
----------- ----------- ----------- -----------
Pro forma net income/ (loss) $ 4,544 $ (74,392) $ (42,238) $ (189,928)
----------- ----------- ----------- -----------
Pro forma earnings/ (loss) per share:
Basic $ 0.01 $ (0.20) $ (0.11) $ (0.54)
----------- ----------- ----------- -----------
Diluted $ 0.01 $ (0.20) $ (0.11) $ (0.54)
----------- ----------- ----------- -----------
Shares used in computing per share amounts:
Basic 372,680 365,998 370,529 349,280
----------- ----------- ----------- -----------
Diluted 373,961 365,998 370,529 349,280
----------- ----------- ----------- -----------
- ----------
Pro forma statements of operations are intended to present the Company's
operating results, excluding special items described below, for the periods
presented.
During the three month period ended December 31, 2002, the special items
represented acquired in-process research and development, amortization of
acquisition related items including intangibles and non-cash deferred stock
compensation, restructuring of operations and other non-recurring items, net,
and other special items. The other special items consisted of gains associated
with repurchases of a portion of the Company's Convertible Subordinated Notes,
gains on miscellaneous asset sales and a write down of certain equity securities
due to impairment.
During the year ended December 31, 2002, the special items consisted of all the
items mentioned in the preceding paragraph in addition to additional excess
inventory and related charges and a $22 million tax benefit as a result of
changes in the tax laws.
During the three month period ended December 31, 2001, the special items
represented additional excess inventory and related charges, amortization of
acquisition related items including intangibles and non-cash deferred stock
compensation, restructuring of operations and other non-recurring items, net,
and other special items. The other special items consisted of a net write down
of certain equity securities due to impairment and the write-off of debt
issuance costs associated with the repayment of bank debt during the quarter.
During the year ended December 31, 2001, the special items consisted of all the
items mentioned in the preceding paragraph in addition to acquired in-process
research and development. The other special items consisted of the items listed
above in addition to the write-off of debt issuance costs associated with the
restructuring of a master lease and security agreement.
For the three month period and year ended December 31, 2002, the pro forma
statements are prepared using the Company's calculated tax expense of $6,062 and
$24,250, respectively, when excluding special items. For the three month period
and year ended December 31, 2001, the pro forma statements are prepared using a
calculated rate of 0%, when excluding special items.
For the three months ended December 31, 2002, 1,281 shares were considered
dilutive common stock equivalents and included in the computation of diluted pro
forma earnings per share. In computing the diluted pro forma loss per share for
the year ended December 31, 2002 and the three month period and year ended
December 31, 2001, all common stock equivalents were excluded as a result of
their antidilutive effect.
A reconciliation from pro forma net income/ (loss) to the reported results is
presented on the following page.
The format presented above is not intended to be in accordance with Generally
Accepted Accounting Principles.
LSI LOGIC CORPORATION
RECONCILIATION OF PRO FORMA NET INCOME/(LOSS) TO REPORTED RESULTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Three Months Ended Year Ended
-------------------------- ---------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2002 2001 2002 2001
---------- ---------- ----------- -----------
Pro forma net income/(loss) $ 4,544 $ (74,392) $ (42,238) $ (189,928)
---------- ----------- ----------- ----------
Special items:
Additional excess inventory and related charges -- (52,500) (45,526) (210,564)
Amortization of acquisition related items including
intangibles and non-cash deferred stock compensation (32,969) (88,683) (155,920) (292,878)
Acquired in-process research and development (998) -- (2,920) (96,600)
Restructuring of operations and other non-recurring items, net 4,504 (27,269) (67,136) (219,639)
Other special items (5,851) (7,300) (1,200) (21,544)
Tax benefit -- -- 22,500 39,198
---------- ----------- ----------- ----------
Total special items (35,314) (175,752) (250,202) (802,027)
---------- ----------- ----------- ----------
Net loss $ (30,770) $ (250,144) $ (292,440) $ (991,955)
---------- ----------- ----------- ----------
Basic earnings/(loss) per share:
Pro forma net income/(loss) $ 0.01 $ (0.20) $ (0.11) $ (0.54)
Special items ** (0.09) (0.48) (0.68) (2.30)
---------- ----------- ----------- ----------
Net loss $ (0.08) $ (0.68) $ (0.79) $ (2.84)
---------- ----------- ----------- ----------
Diluted earnings/(loss) per share*:
Pro forma net income/(loss) $ 0.01 $ (0.20) $ (0.11) $ (0.54)
Special items ** (0.09) (0.48) (0.68) (2.30)
---------- ----------- ----------- ----------
Net loss $ (0.08) $ (0.68) $ (0.79) $ (2.84)
---------- ----------- ----------- ----------
Shares used in computing per share amounts:
Basic 372,680 365,998 370,529 349,280
---------- ----------- ----------- ----------
Diluted 372,680 365,998 370,529 349,280
---------- ----------- ----------- ----------
- ----------
* In computing diluted loss per share for the three month periods and years
ended December 31, 2002 and 2001, all common stock equivalents were excluded
as a result of their antidilutive effect.
** This line item includes rounding adjustments.
LSI LOGIC CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Three Months Ended Year Ended
---------------------- ------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2002 2001 2002 2001
--------- --------- --------- -----------
Revenues $ 479,697 $ 405,830 1,816,938 $ 1,784,923
--------- --------- --------- -----------
Costs and expenses:
Cost of revenues:
Cost of revenues 298,722 277,888 1,122,696 1,160,432
Additional excess inventory and related charges - 52,500 45,526 210,564
Research and development 115,752 121,295 457,351 503,108
Selling, general and administrative 55,602 70,731 230,202 307,310
Acquired in-process research and development 998 - 2,920 96,600
Restructuring of operations and other non-recurring items, net (4,504) 27,269 67,136 219,639
Amortization of acquisition related items including
intangibles and non-cash deferred stock compensation * 32,969 88,683 155,920 292,878
--------- --------- --------- -----------
Total costs and expenses 499,539 638,366 2,081,751 2,790,531
--------- --------- --------- -----------
Loss from operations (19,842) (232,536) (264,813) (1,005,608)
Interest expense (10,578) (14,737) (51,977) (44,578)
Interest income and other, net 5,712 (2,871) 26,100 19,033
--------- --------- --------- -----------
Loss before income taxes (24,708) (250,144) (290,690) (1,031,153)
Provision/(benefit) for income taxes 6,062 - 1,750 (39,198)
--------- --------- --------- -----------
Net loss $ (30,770) $(250,144) $(292,440) $ (991,955)
--------- --------- --------- -----------
Loss per share:
Basic $ (0.08) $ (0.68) $ (0.79) $ (2.84)
--------- --------- --------- -----------
Diluted ** $ (0.08) $ (0.68) $ (0.79) $ (2.84)
--------- --------- --------- -----------
Shares used in computing per share amounts:
Basic 372,680 365,998 370,529 349,280
--------- --------- --------- -----------
Diluted 372,680 365,998 370,529 349,280
--------- --------- --------- -----------
* The amortization of acquisition related items including intangibles and
non-cash deferred stock compensation for the three month period ended
December 31, 2002 are comprised of the following items:
Amortization of continuing intangibles $ 20,583
Amortization of newly purchased intangibles 56
Amortization of non-cash deferred stock compensation 12,330
------
$ 32,969
------
On January 1, 2002, we adopted Statement of Financial Accounting Standard
("SFAS") No. 142 "Goodwill and Other Intangible Assets". SFAS No. 142 changes
the accounting for goodwill from an amortization method to an impairment-only
approach. As a result of the adoption of SFAS No. 142, amortization of goodwill
and intangibles was lower in 2002 as compared to 2001 as approximately $952
million of goodwill was no longer amortized. For more information regarding the
adoption of SFAS No. 142, please refer to our Annual Report on Form 10-K for the
fiscal year ended December 31, 2001 and our current report on Form 10-Q for the
nine month period ended September 30, 2002.
** In computing diluted loss per share for the three month periods and years
ended December 31, 2002 and 2001, all common stock equivalents were excluded
as a result of their antidilutive effect.
LSI LOGIC CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN MILLIONS)
(UNAUDITED)
December 31, December 31,
ASSETS 2002 2001
- ------ ----------- ------------
Current assets:
Cash and short-term investments $ 990.0 $ 1,013.3
Accounts receivable, net 248.6 191.7
Inventories 194.5 256.6
Prepaid expenses and other current assets 193.0 307.3
---------- ----------
Total current assets 1,626.1 1,768.9
Property and equipment, net 747.0 944.4
Goodwill and other intangibles 1,251.0 1,297.6
Other assets 518.6 614.9
---------- ----------
Total assets $ 4,142.7 $ 4,625.8
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Current liabilities $ 397.4 $ 509.7
Current portion of long-term debt, capital lease
obligations and short-term borrowings 0.4 0.3
---------- ----------
Total current liabilities 397.8 510.0
Long-term debt and capital lease obligations 1,241.2 1,335.8
Deferred tax and other long-term liabilities 196.9 294.2
---------- ----------
Total liabilities 1,835.9 2,140.0
Minority interest in consolidated subsidiaries 6.5 5.9
---------- ----------
Stockholders' equity:
Common stock 2,958.0 2,909.3
Deferred stock compensation (51.2) (124.1)
Accumulated deficit (612.2) (319.8)
Accumulated other comprehensive income 5.7 14.5
---------- ----------
Total stockholders' equity 2,300.3 2,479.9
---------- ----------
Total liabilities and stockholders' equity $ 4,142.7 $ 4,625.8
========== ==========
LSI LOGIC CORPORATION
STATEMENT OF CASH FLOWS
(IN THOUSANDS, EXCEPT WHERE NOTED)
(UNAUDITED)
Three Months Ended Year Ended
-------------------- ---------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2002 2001 2002 2001
--------- --------- --------- --------
OPERATING ACTIVITIES:
Net loss (30,770) (250,144) (292,440) (991,955)
Adjustments:
Depreciation & amortization 89,571 136,732 349,326 532,562
Amortization of non-cash deferred stock compensation 12,330 28,715 77,303 104,627
Acquired in-process research and development 998 -- 2,920 96,600
Non-cash restructuring and non-recurring items, net (4,504) 25,639 46,050 184,876
Gain on repurchase of Convertible Subordinated Notes (2,686) -- (14,260) --
Loss on write down of equity securities, net 9,518 3,768 19,423 9,906
Gain on sale of short-term investments (2,337) (756) (8,220) (2,098)
Changes in working capital components, net of assets acquired
and liabilities assumed in business combinations:
Accounts receivable, net 51,954 28,890 (54,619) 345,439
Inventories, net 29,480 48,211 75,579 43,182
Prepaid expenses and other assets 143,933 (23,572) 160,304 (74,857)
Accounts payable (14,968) (7,724) (35,828) (138,100)
Accrued and other liabilities (166,706) 33,395 (171,890) 7,171
------- ------ ------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES 115,813 23,154 153,648 117,353
------- ------ ------- --------
INVESTING ACTIVITIES:
Purchases of debt and equity securities available-for-sale (488,574) (175,822) (1,771,809) (1,272,897)
Maturities and sales of debt and equity securities available-for-sale 419,780 271,411 1,486,816 1,860,402
Purchases of property and equipment, net (15,342) (72,855) (38,572) (224,252)
Increase in non-current assets and deposits (1,000) (6,947) (11,658) (330,237)
Acquisition of companies, net of cash acquired (5,444) -- (55,916) (177,677)
------- ------ ------- --------
NET CASH (USED IN)/PROVIDED BY INVESTING ACTIVITIES (90,580) 15,787 (391,139) (144,661)
------- ------ ------- --------
FINANCING ACTIVITIES:
Proceeds from borrowings -- 490,088 -- 690,088
Repayment of debt obligations (85) (200,158) (332) (201,226)
Debt issuance costs -- (15,249) -- (16,249)
Repurchase of Convertible Subordinated Notes (68,312) -- (118,938) --
Issuance of common stock, net 17,743 26,592 43,992 81,650
------- ------ ------- --------
NET CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES (50,654) 301,273 (75,278) 554,263
------- ------ ------- --------
------- ------ ------- --------
Effect of exchange rate changes on cash and cash equivalents 2,878 (6,295) 4,478 (5,712)
------- ------ ------- --------
(Decrease)/increase in cash and cash equivalents (22,543) 333,919 (308,291) 521,243
Cash and cash equivalents at beginning of period 471,390 423,219 757,138 235,895
------- ------ ------- --------
Cash and cash equivalents at end of period 448,847 757,138 448,847 757,138
======= ====== ======= ========
LSI LOGIC CORPORATION
SELECTED FINANCIAL INFORMATION
(IN MILLIONS, EXCEPT WHERE NOTED)
(UNAUDITED)
Three Months Ended
--------------------------------------------
Dec. 31, Sept. 30, Dec. 31,
2002 2002 2001
----------- ---------- ----------
Semiconductor revenues $ 373.8 $ 400.3 $ 353.4
Storage Systems revenues $ 105.9 $ 86.7 $ 52.4
Total revenues $ 479.7 $ 487.0 $ 405.8
Percentage change in revenues-qtr./qtr.(a) -1.5% 11.2% 2.3%
Percentage change in revenues-yr./yr.(b) 18.2% 22.8% -45.9%
Days sales outstanding 47 56 43
Days of inventory(c) 59 70 83
Current ratio 4.1 3.4 3.5
Quick ratio 3.1 2.4 2.4
R&D as a percentage of revenues 24.1% 23.5% 29.9%
SG&A as a percentage of revenues 11.6% 12.1% 17.4%
Gross margin as a percentage of revenues(c) 37.7% 40.8% 31.5%
Employees(d) 5,534 5,508 6,742
Revenues per employee (in thousands)(e) $ 346.7 $ 353.7 $ 240.8
Diluted shares (in thousands)(f) 373,961 372,538 365,998
Selected Cash Flow information
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Purchase of property and equipment(g) $ 17.1 $ 13.0 36.9
Depreciation / amortization(h) $ 58.8 $ 59.1 $ 72.5
In-process research and development $ 1.0 $ 1.9 $ --
Issuance of common stock for employee stock
purchase and option programs $ 17.7 $ -- $ 26.6
(a) Represents sequential quarter growth in revenues.
(b) Represents growth in revenues in the quarter presented as compared to the
same quarter of the previous year.
(c) Based on pro forma cost of revenues.
(d) Actual number of employees at the end of each period presented.
(e) Revenue per employee is calculated by annualizing revenue for each quarter
presented and dividing it by the number of employees.
(f) Shares used in determining pro forma diluted income/(loss) per share.
(g) Represents gross addition of property and equipment.
(h) Represents depreciation of fixed assets and amortization of software.
Excludes amortization of intangibles and non-cash deferred stock
compensation.