LSI Posts Beat-And-Raise Q3; Stock Rallies

LSI (LSI), which makes chips and storage systems, posted better-than-expected Q3 results, and a solid Q4 outlook.

For the quarter, the company posted revenue of $578 million, with non-GAAP profits of 18 cents a share; the Street had expected $555.7 million and 4 cents.

For Q4, LSI sees revenue of $605 million to $645 million and non-GAAP profits of 7-13 cents a share; the consensus has been $578.7 million and 6 cents.

“With the economy demonstrating signs that a modest recovery is underway, our third quarter revenues exceeded our guidance range, supported by healthy sequential growth across our businesses overall,” said CEO Abhi Talwalkar.

In late trading, LSI is up 24 cents, or 4.8%, to $5.23.