LSI Logic met analysts' estimates in its second quarter Tuesday, raking in $98 million, or 29 cents a share, on sales of $644 million.
First Call Corp. consensus predicted the chipmaker would earn 29 cents a share in the quarter.
Ahead of the earnings report, LSI (NYSE: LSI) shares closed up 2 to 48 3/4.
The $644 million in sales represents a 29 percent improvement from the year-ago quarter when it earned $31 million, or 10 cents a share, on sales of $501 million.
"With communications chip sales leading the way, LSI Logic is poised for accelerated growth in the second half of the year," said CEO Wilfred Corrigan in a prepared release. "Based upon our bookings momentum and the global demand for our communications solutions, we now expect communications products to reach 50 percent of the company's revenues by the end of the third quarter."
Last quarter, LSI rolled past analysts' estimates, earning $88 million, or 26 cents a share, on sales of $615 million.
Company officials said its communications chip business is growing much faster than expected and should improve 65 percent from the year-ago period.
Its shares raced up to a 52-week high of 90 3/8 in March after falling to a low of 21 9/16 in October.
Nineteen of the 20 analysts following the stock rate it either a "buy" or "strong buy."
Analysts expect the Milpitas, Calif. company to earn $1.26 a share in the fiscal year.
Among other chipmakers reporting earnings after the bell:
First Call Corp. consensus pegged the programmable logic device maker for a profit of 38 cents a share in the quarter.
The $55.5 million in sales marks a 33 percent jump from the year-ago quarter when it earned $3.5 million, or 16 cents a share, on sales of $41.6 million.
Actel shares closed off 1/4 to 46 7/8 ahead of the earnings report.
Analysts were predicting a profit of 25 cents a share in the quarter.
The $211 million in sales marks a 50 percent jump from the year-ago quarter when it made $54.2 million, or 17 cents a share, on sales of $140.5 million.
Its shares closed up 1 7/16 to 61 7/16 ahead of the earnings report.