LSI Corporation (NYSE: LSI) today reported results for its third quarter ended September 30, 2012. "In the third quarter we delivered strong year-over-year growth in an environment with considerable macroeconomic uncertainty and with softness in several key markets. We are managing the elements within our control, and are pleased with the significant improvement in margin and earnings over last year," said Abhi Talwalkar, LSI's president and CEO. "Looking forward, our design win performance is ahead of expectations and we are benefiting from the rapid adoption of LSI's exciting new flash-based products and the penetration of LSI products into large web and cloud datacenters." Third quarter 2012 revenues from continuing operations were $624 million, in line with guidance, compared to $547 million generated from continuing operations in the third quarter of 2011, and compared to $660 million generated from continuing operations in the second quarter of 2012. Third Quarter Highlights Third quarter 2012 revenues from continuing operations* of $624 million, up 14% year-over-year Third quarter 2012 GAAP** income from continuing operations of $0.07 per diluted share Third quarter 2012 non-GAAP*** income from continuing operations of $0.17 per diluted share Third quarter 2012 operating cash flows of $112 million Fourth Quarter 2012 Business Outlook Projected revenues from continuing operations* of $570 million to $610 million GAAP** income from continuing operations in the range of ($0.02) to $0.07 per share Non-GAAP*** income from continuing operations in the range of $0.11 to $0.17 per share * On May 6, 2011, LSI completed the sale of its external storage systems business. The financial results of the external storage systems business have been classified as discontinued operations in LSI's financial statements. Our ongoing business is referred to as "continuing operations." ** Generally Accepted Accounting Principles. *** Excludes stock-based compensation, amortization of acquisition-related intangibles, purchase accounting effect on inventory, restructuring of operations and other items, net, gain on remeasurement of a pre-acquisition equity interest to fair value, gain/loss on sale/write-down of investments and, in the case of non-GAAP net income, gain from the sale of the external storage systems business. It also excludes the income tax effect associated with the above-mentioned items. Third quarter 2012 GAAP** income from continuing operations was $40 million or $0.07 per diluted share, compared to third quarter 2011 GAAP income from continuing operations of $29 million or $0.05 per diluted share. Second quarter 2012 GAAP income from continuing operations was $59 million or $0.10 per diluted share. Third quarter 2012 GAAP income from continuing operations included a net charge of $59 million from special items, consisting primarily of approximately $28 million of stock-based compensation expense, $30 million of amortization of acquisition-related items, $4 million of net restructuring and other items, and $3 million of gain on the sale of investments. Third quarter 2012 non-GAAP*** income from continuing operations was $99 million or $0.17 per diluted share, compared to third quarter 2011 non-GAAP income from continuing operations of $83 million or $0.14 per diluted share. Second quarter 2012 non-GAAP income from continuing operations was $121 million or $0.21 per diluted share. Cash and short-term investments totaled approximately $643 million at quarter end. The company completed third-quarter purchases of approximately 7 million shares of its common stock for approximately $50 million. On a cumulative basis, LSI has repurchased a total of 102 million shares and utilized approximately $725 million of the $750 million stock repurchase program the board authorized last year. In addition, in August the board authorized a new $500 million stock repurchase program. "LSI continued to demonstrate solid cash generation with cash flow from operations in the quarter exceeding $110 million," said Bryon Look, LSI's CFO and chief administrative officer. "Together with a debt-free balance sheet and exciting long-term growth opportunities, we are well-positioned to deliver strong operating profits while also continuing to return capital to shareholders." Capital spending is projected to be around $27 million in the fourth quarter and approximately $130 million in total for 2012. Depreciation and software amortization is projected to be around $15 million in the fourth quarter and approximately $60 million in total for 2012.