LSI Teams with Vineyard Networks

Earlier this week, LSI Corporation (LSI - Analyst Report) announced that it has joined hands with Vineyard Networks with the express intent of speeding up network performances. This shall be done by integrating LSI Corp.’s Axxia processor with Virtual Pipeline technology with Vineyard’s deep packet inspection (DPI) software platform.

Along with building a platform to identify real-time network applications for optimum bandwidth usage, this solution will lower host machine loads. Furthermore, it will provide a more user-friendly and adaptable network platform.

There seems to be a growing need for application tracking and network offloading in the world today as the number of applications is increasing at a brisk pace. This venture, we are certain, would help in the crucial task of effective traffic management and network solution performance.

On April 25, 2012, LSI Corp. declared financial results for the first quarter of 2012. Network revenues, which are an important constituent of net revenues for the company, remained flat sequentially accounting for only $107 million. We believe the recent pact with Vineyard Networks would drive network sales comprehensively in the upcoming quarter.

Making technological and product innovations is an attribute not quite singular to LSI Corp. Yesterday, Cirrus Logic Inc. (CRUS - Snapshot Report) made a momentous advancement in LED retrofit bulbs by launching its second group of digital LED controllers with enhanced TruDim dimmer compatibility technology. Hence, it would be wise for LSI Corp. to remain abreast in the technology game to fend off competition from bigger players.

The company currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. However, we presently maintain our ‘Neutral’ recommendation on the stock.