LSI Corporation
(
LSI
) recently demonstrated the semi-conductor industry's first ever
28nm read channel in its True Store RC5100. By using its innovative
decoding design and low-density parity check (LDPC), HDDs shall now
be revolutionized with higher areal density, efficient power usage
and better performances.
The company's latest TrueStore venture, the RC5100 can be used
in notebooks, desktop PCs, and enterprise HDDs, thereby enhancing
the host device's power efficiencies. It is scheduled for launch
early 2012 to its OEM customers.
At a time when technological advancements seem to dominate
economic development of nearly all sectors, competition is both
prevalent and fierce, whereby every big player is fighting to gain
some edge over the other making the scope for innovations even more
challenging. In this regard, LSI makes an invaluable contribution
which deserves commendable approbation as transmission and storage
of digital data has become a burgeoning area of interest and
reliance not only for industries but also for general
consumers.
LSI recently announced its third quarter financial results of
2011, whereby it earned revenues worth $547 million rising 20.7%
year over year; well within management's expectations. The net
income per share came to 14 cents which beat the Zacks Consensus
Estimate of 12 cents. Server and storage semiconductor revenues
came to $403 million accounting for nearly 74% of total
revenues.
The long-term growth plans for its storage technology solutions
division are lucid from the aggressive strategies being implemented
by LSI, which include the acquisition of SandForce Inc. for nearly
$322 million. This, coupled with the recent sale of NetApp Inc. for
$480 million seems to put the company in a favorable position as it
enters 2012.
It is imperative that LSI continues to actively focus on its
innovations and profitable acquisitions to battle its fierce
competitors,
Dot Hill Systems Corporation
(
HILL
),
Infortrend Technology Inc.
and
PMC-Sierra Inc.
(
PMCS
).
LSI, established in 1980 and headquartered in Milpitas,
California, provides silicon-to-system solutions, integrated
circuits used in HDDs, computer servers, communication and storage
systems and also in PCs. It caters mainly to OEMs directly and also
operates through resellers and distributors.
We currently have a Neutral recommendation on LSI Corporation.
The stock currently carries a Zacks #3 Rank, which translates into
a short-term rating of Hold.
DOT HILL SYS CP (
HILL
): Free Stock Analysis Report
LSI CORP (
LSI
): Free Stock Analysis Report
PMC-SIERRA INC (
PMCS
): Free Stock Analysis Report
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