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LSI LOGIC REPORTS RECORD NET INCOME ON INCREASED REVENUES IN SECOND QUARTER; TURNAROUND FROM A LOSS IN Q2 1992

 MILPITAS, Calif., July 20 /PRNewswire/ -- LSI Logic Corp. (NYSE: LSI) today reported record net income in the second quarter of 1993 compared with a loss in the same period a year ago.
 Revenues in the second quarter ended June 30, 1993, totaled $177.1 million, up 16.6 percent from $151.8 million in the second quarter a year ago. Net income was $13.1 million or 27 cents a share compared with a loss of $5.9 million or 13 cents a share in the same period a year ago.
 For the first six months of 1993, revenues were $346 million, up 14.4 percent from revenues of $302.4 million in the first six months of 1992. Net income in the first six months of 1993 was $23.7 million or 49 cents a share compared with a loss of $5.5 million or 12 cents a share in the first six months of 1992.
 "Increased revenues and tight expense controls were the primary reasons for the company's improved financial performance in the second quarter," said Wilfred J. Corrigan, chairman and chief executive of LSI Logic. "Operating expenses as a percentage of revenues were reduced to 27.3 percent in the second quarter of 1993 from 36 percent in the second quarter of 1992. Operating income, pre-tax income and net income all were records in the second quarter of 1993."
 The balance sheet continued to show improvement in the second quarter. Cash increased by more than $11 million from the first quarter of 1993, even with capital spending of $22 million.
 Total liabilities fell by $2 million in the second quarter from the first quarter, even as the company's long-term debt rose by $11 million. The increase in debt was associated primarily with the preparation for launching initial production of 0.60-micron application-specific integrated circuits (ASICs) at the company's new NSI II wafer fab in Japan.
 "Overall, customer purchases were healthy in the second quarter, with the United States and European markets leading the way," Corrigan said. "Design wins involving the 0.60-micron ASIC product families continued on a strong pace, as customers continued to undertake new designs with increasingly higher levels of integration. New design wins involving sub-micron ASIC products were roughly half of the total in the quarter."
 In reviewing new products and customer relationships announced during the second quarter, the company listed the following highlights:
 -- The LR33120 GraphX processor, a high-performance X-terminal on a chip;
 -- A bi-directional input/output buffer macrocell fully compatible with Intel Corp.'s Peripheral Component Interface (PCI) local bus specification for use in high-performance applications such as graphics accelerators, multimedia and networking systems;
 -- The company announced it would link its C-MDE design system for design verification and implementation with various industry-standard front-end design tools, including those from IBM Corp., Mentor Graphics and Viewlogic.
 LSI Logic Corp. is a Fortune 500 supplier of high-performance semiconductors, with operations in the United States, Europe, Japan and Canada. The company manufactures and markets application-specific integrated circuits (ASICs), a growing line of electronic imaging and digital signal-processing ICs, 32-bit MIPS and SPARC RISC microprocessors, and chip-sets and graphics products for IBM compatible personal computers. The company also develops and sells design software. LSI Logic is headquartered in Milpitas (95035) at 1551 McCarthy Blvd.
 Recorded text of the most current earnings release is available by dialing 408-433-7743. You may also have copies of this and other financial, organizational and product news releases faxed to you by phoning our toll-free FaxLogic number, 800-451-2742.
 LSI LOGIC CORP.
 Consolidated Statements of Income
 (In thousands, except per share amounts)
 (Unaudited)
 Three Months Ended Six Months Ended
 June 30, June 30, June 30, June 30,
 1993 1992 1993 1992
 Revenues $177,080 $151,836 $346,009 $302,357
 Costs and expenses:
 Costs of revenues 108,246 105,767 212,166 201,570
 Research and
 development 19,408 20,366 38,405 41,394
 Selling, general
 and administrative 29,007 34,256 58,215 66,106
 Total costs and
 expenses 156,661 160,389 308,786 309,070
 Income from
 operations 20,419 (8,553) 37,223 (6,713)
 Interest expense (2,384) (3,132) (4,557) (6,076)
 Interest income
 and other 2,512 5,366 4,207 7,877
 Income (loss) before
 income taxes and
 minority interest 20,547 (6,319) 36,873 (4,912)
 Provision (benefit)
 for income taxes 6,164 (1,264) 11,062 (633)
 Income (loss) before
 minority interest 14,383 (5,055) 25,811 (4,279)
 Minority interest in
 net income of
 subsidiaries 1,313 799 2,126 1,266
 Net income (loss) $ 13,070 $ (5,854) $ 23,685 $ (5,545)
 Earnings (loss) per
 share $ 0.27 $(0.13) $ 0.49 $(0.12)
 Common and common
 equivalents used in
 computing per share
 amounts 48,874 44,450 48,137 44,510
 Trended Balance Sheets
 (In millions)
 June 30, March 31, Dec. 31,
 1993 1993 1992
 ASSETS
 Current assets:
 Cash and short-term
 investments $ 172.3 $ 160.9 $ 152.5
 Accounts receivable, net 117.7 124.4 108.4
 Inventories 69.9 67.9 63.5
 Prepaid expenses and
 other current assets 26.9 28.3 28.3
 Total current assets 386.8 381.5 352.7
 Property and equipment, net 384.5 355.3 327.8
 Other assets 50.4 54.9 58.5
 Total assets $ 821.7 $ 791.7 $ 739.0
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 90.9 $ 100.4 $ 113.9
 Accrued salaries, wages
 and benefits 18.5 22.9 16.5
 Accrued restructuring costs 34.1 36.6 38.9
 Other accrued liabilities 22.5 24.3 24.3
 Income taxes payable 7.3 4.7 0.3
 Current portion of long-term
 debt, capital lease obligations
 and short-term borrowings 10.8 17.2 16.9
 Total current liabilities 184.1 206.1 210.8
 Long-term debt, capital lease
 obligations and other
 noncurrent liabilities 258.3 247.1 218.8
 Deferred income taxes 6.6 7.0 7.4
 Minority interest in
 subsidiaries 121.6 112.3 104.3
 Total liabilities 570.6 572.5 541.3
 Stockholders' equity:
 Common stock 260.8 252.2 245.6
 Accumulated deficit (71.7) (84.8) (95.4)
 Cumulative translation
 adjustment 62.0 51.8 47.5
 Total stockholders' equity 251.1 219.2 197.7
 Total liabilities and
 stockholders' equity $ 821.7 $ 791.7 $ 739.0
 NOTE: Effective Jan. 1, 1993, the company adopted Statement of Financial Accounting Standards No. 109 (SFAS No. 109), "Accounting for Income Taxes." Upon implementation of SFAS No. 109, certain accounts were reclassified. Accordingly, certain reclassifications have been made to the December 1992 balance sheet to conform to the 1993 presentation. Such reclassifications had no effect on 1992 results of operations or the accumulated deficit.
 -0- 7/20/93
 /CONTACT: Bruce Entin of LSI Logic, 408-433-4067/
 (LSI)


CO: LSI Logic Corp. ST: California IN: CPR SU: ERN

GT-TM -- SJ007 -- 3683 07/20/93 20:07 EDT
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