LSI Ships New Product

LSI Corp. (LSI - Analyst Report) has begun shipping samples of the industry's first 40-nanometer multi-interface physical layer (PHY) IP designed for notebook, desktop and enterprise hard disk drive (HDD) market segments.

Earlier this month, the company collaborated with Aricent to accelerate the deployment of its wireless and wireline networking infrastructure and enterprise networking systems.

The companies currently offer pre-integrated software stacks for multi-service business gateways that run on communications processors developed by LSI. They have now extended their collaboration to wireless and additional wireline infrastructure applications.

Headquartered in California, LSI designs, develops and markets complex high-performance semiconductors and storage systems. Aricent is a global innovation, technology and services company focusing exclusively on communications.

LSI and Aricent expect the pre-integration of their products to enable Original Equipment Manufacturers (OEMs) to reduce cost of developing products and marketing time by half. Telecom OEMs generally integrate software and hardware components from various suppliers in order to create next-generation systems for service provider networks. LSI expects that this collaboration will help it to provide pre-integrated, pre-optimized solutions to OEMs that reduce the time and cost of delivering systems.

LSI's modest exposure to the PC/server market is expected to allow the company better flexibility than its competitors, Adaptec Inc. (ADPT - Snapshot Report) and Applied Micro Circuits Corp. (AMCC - Analyst Report), which are experiencing some softness in end-market demand for PCs and servers and related storage products.

Last month, LSI posted better-than-expected results for the second quarter, due to growth in both the storage and networking businesses. With the recovery in the chip market, many companies are boosting their quarterly projections. We expect LSI's top line to improve after a significant decline in the second half of 2008.