$356M remaining in stock repurchase authorizationSAN JOSE, Calif., July 24, 2013 — (PRNewswire) — LSI Corporation (NASDAQ: LSI) today declared a quarterly cash dividend of $0.03 per common share. The dividend is payable on September 20, 2013, to stockholders of record on September 6, 2013.
"LSI is benefiting from the massive growth of data and its demands on storage and networking in datacenters and mobile networks," said Abhi Talwalkar, LSI's president and CEO. "As a result, we are generating strong free cash flow from our businesses, and the announcement of a dividend demonstrates our confidence in our long-term ability to return capital to our stockholders and to continue investments important to our growth, such as research and development for future products."
The dividend will be paid from U.S. earnings and is expected to be treated as dividend income to stockholders for U.S. tax purposes, although the final determination of the tax treatment of the dividend will be made after LSI's fiscal 2013 year end.
LSI intends to pay a regular quarterly cash dividend on its common stock. Future dividends will be subject to Board approval.
LSI also outlined its intent to continue allocating capital to its share repurchase program, which has returned over $2 billion of cash to stockholders over the last six years. LSI has over $356M available for future share repurchases under its existing authorization.
"The combination of prior and continuing share repurchases and quarterly dividends reflects our strong financial position and a long-term, consistent commitment to deliver value to our stockholders," said Bryon Look, LSI's CFO.
Forward-Looking Statements: This news release contains forward-looking statements that are based on the current opinions and estimates of management. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause LSI's actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: our ability to achieve anticipated synergies and to develop integrated new products following our acquisition of SandForce; our ability to repurchase our common stock at prices we believe to be advantageous; our reliance on major customers and suppliers; our ability to keep up with rapid technological change; our ability to compete successfully in competitive markets; fluctuations in the timing and volumes of customer demand; the unavailability of appropriate levels of manufacturing capacity; our ability to generate cash at levels sufficient to pay a dividend; our ability to maintain sufficient surplus out of which we can pay dividends; whether we determine that continuing to pay a dividend is in our stockholders' interest, and general industry and macro-economic conditions. For additional information, see the documents filed by LSI with the Securities and Exchange Commission, and specifically the risk factors set forth in the company's most recent reports on Form 10-K and 10-Q. LSI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
LSI Corporation (NASDAQ: LSI) designs semiconductors and software that accelerate storage and networking in datacenters, mobile networks and client computing. Our technology is the intelligence critical to enhanced application performance, and is applied in solutions created in collaboration with our partners. More information is available at www.lsi.com. Connect with LSI via Facebook, Twitter and YouTube.
LSI, the LSI & Design logo and Storage.Networking.Accelerated. are trademarks or registered trademarks of LSI Corporation in the United States and/or other countries.
SOURCE LSI Corporation
David Miller, LSI Corporation, 408-433-6116