LSI plunges on warning

The chipmaker says flagging orders will push its results below the Street's already lowered expectations, and its stock drops as a result.

Shares of LSI Logic fell more than 13 percent today after the company warned that it expects its third-quarter earnings to miss Wall Street's already lowered expectations.

First Call's consensus of analysts' estimates had pegged the semiconductor maker's third-quarter earnings at 23 cents a share.

"Less-than-anticipated order input during the first six weeks of the third quarter is expected to result in 5 percent to 10 percent lower revenues and EPS in the low-to-mid teens," Wilfred Corrigan, LSI Logic chairman and CEO, said in a statement.

Corrigan pointed to the global slowdown in the semiconductor industry as the main reason for LSI's shortfall.

"[The slowdown] is now completing its third year," he said. "We expect supply and demand to come together in the next 12 months."

In July, when LSI announced its second-quarter earnings of $330 million, or 23 cents per share, it also warned that its earnings for the third quarter would be flat

The company said the third-quarter warning does not take into account one-time charges associated with its acquisition of Symbios Logic, nor does it reflect the impact of consolidating Symbios' operating results during the third quarter.

Shares of LSI were trading at 15.81, down 2.43. The stock has traded as high as 35.19 and as low as 18.25 during the past 52 weeks.