Shares of LSI Corp., the maker of chips used in computer disk drives, rose as much as 10 percent in late trading Wednesday after the company forecast higher first-quarter revenue than analysts had estimated.
First-quarter sales from continuing operations will be $550 million to $590 million, the Milpitas, California-based company said in a statement. That compares with the $508.7 million average of estimates compiled by Bloomberg.
The forecasts reflects market-share gains and new orders from large customers, Chief Executive Officer Abhi Talwalkar said in the statement. LSI is tapping demand for its technology in data centers, cloud computing, mobile networks and flash- memory storage, he said.
“We enter 2012 building on strong business momentum and are accelerating our revenue growth,” Talwalkar said.
LSI rose to as high as $7.80 in extended trading, after closing at $7.08 on the New York Stock Exchange.
© Copyright 2013 Bloomberg News. All rights reserved.