exv99w1

Exhibit 99.1

`
FOR IMMEDIATE RELEASE		OCTOBER 24, 2007

Investor Relations Contact:		Media Relations Contact:
Sujal Shah		Robert Guenther
610-712-5471		610-712-1514
sujal.shah@lsi.com		robert.guenther@lsi.com

LSI REPORTS THIRD QUARTER 2007 RESULTS

Third Quarter 2007 Revenues Exceed Guidance

Third Quarter News Release Summary

§ Third quarter 2007 revenues of $727 million

§ Third quarter 2007 GAAP* net loss of 20 cents per diluted share

§ Third quarter 2007 non-GAAP** net income of 6 cents per diluted share

§ Cash and short-term investments of $1.1 billion

Fourth Quarter 2007 Business Outlook

§ Projected revenues of $700 million to $730 million [1]

§ GAAP* net income in the range of minus 9 to plus 3 cents per diluted share

§ Non-GAAP** net income in the range of 5 to 9 cents per diluted share

[1]

On October 24, 2007, LSI announced that it had completed the sale of its mobility business. Revenue guidance for the fourth quarter includes revenue from that business only through the date of sale.

Generally Accepted Accounting Principles.

Excludes stock-based compensation, amortization of acquisition-related intangibles, restructuring of operations and other items, net, purchase accounting effect on inventory, loss on write-down of equity securities and acquired in-process research and development. It also excludes the income tax effect associated with the above mentioned items.

BROAD-BASED END CUSTOMER DEMAND FUELS STRONG
SEQUENTIAL GROWTH

MILPITAS, Calif., October 24, 2007 – LSI Corporation (NYSE: LSI) today reported third quarter 2007 revenues of $727 million, compared to $493 million in the third quarter of 2006 and $670 million in the second quarter of 2007.

Third quarter 2007 GAAP* net loss was $141 million or 20 cents per diluted share, compared to third quarter 2006 GAAP net income of $44 million or 11 cents per diluted share. Third quarter 2007 GAAP results compare to second quarter 2007 GAAP net loss of $378 million or 50 cents per diluted share. Third quarter 2007 GAAP net loss included a net charge of $184.7 million from special items, including $101.2 million of restructuring costs relating primarily to the sale of our mobility business, $70.6M in the amortization of acquisition-related items and $21.8 million of stock-based compensation expense.

Third quarter 2007 non-GAAP** net income was $44 million or 6 cents per diluted share, compared to third quarter 2006 non-GAAP net income of $65 million or 16 cents per diluted share. Second quarter 2007 non-GAAP net loss was $14 million or 2 cents per diluted share.

Cash and short-term investments totaled approximately $1.1 billion at quarter end. LSI also announced today that to date it has purchased approximately 67.3 million shares of its common stock for approximately $549 million under two repurchase authorizations totaling $1 billion.

“Our solid quarterly results were driven by strong end customer demand in our storage and networking businesses and by achieving substantial cost reductions during our second full quarter of combined operations with Agere,” said Abhi Talwalkar, LSI president and chief executive officer. “Since the beginning of the third quarter, we have made significant progress on completing the first phase of our three-phase business acceleration plan, including completing the sale of our consumer products business to Magnum Semiconductor, our mobility products business to Infineon Technologies and our Thai final assembly and test operations to STATS ChipPAC.

“As a more focused company, we are now experiencing a significantly higher level of engagement with our customers and substantial increases in design win opportunities,” added Talwalkar. “We are also continuing to execute our strategy to invest for long-term revenue growth in our core areas of storage and networking, acquiring Tarari, Inc., a recognized leader in deep packet inspection technology that enables advanced security and network control for service provider and enterprise networks. Through these initial actions and our strong focus, we are poised to achieve our long-term growth and profitability objectives.”

Bryon Look, LSI chief financial officer, said, “We experienced healthy demand in both our semiconductor and storage systems segments, with double-digit sequential revenue growth in storage and networking semiconductors. Our continuing focus on driving organizational efficiencies and maintaining tight controls contributed to significantly lower operating expenses and improved margins.”

LSI Fourth Quarter 2007 Business Outlook

GAAP*

Special Items

Non-GAAP**

Revenue

$700 million to $730 million

Gross Margin

36 – 41%

$30 to $50 million

43 – 45%

Operating Expenses

$270 million to $300 million

$25 to $45 million

$245 million to $255 million

Net Other Income

$2 million

Tax

Approximately $12 million

Approximately 25%

Net (Loss)/Income Per Share

($0.09) to $0.03

($0.06) to ($0.14)

$0.05 to $0.09

Diluted Share Count

700 million

705 million

Capital spending is projected to be around $20 million in the fourth quarter and approximately $60 million in total for 2007.

Fourth quarter depreciation and software amortization is expected to be approximately $20 million.

LSI Conference Call Information

LSI will hold a conference call today at 2 pm PDT to discuss third quarter financial results and the fourth quarter 2007 business outlook. Internet users can access the conference call at http://www.lsi.com/webcast. Subsequent to the conference call, a replay will be available at the same web address or may be accessed by calling 1-866-410-5843 within the U.S. and 1-203-369-0645 for all other locations.

Forward Looking Statements: This news release contains forward-looking statements that are based on the current opinions and estimates of management. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause LSI’s actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: the challenges and costs of integrating and restructuring our operations and achieving anticipated synergies following our recent acquisition of Agere Systems; our ability to successfully and timely transition our assembly and test operations to third parties; fluctuations in the timing and volumes of customer demand; our reliance on major customers and suppliers; our ability to compete successfully in competitive markets; our ability to keep up with rapid technological change; the unavailability of appropriate levels of manufacturing capacity; and general industry and market conditions. For additional information, see the documents filed by LSI with the SEC, and specifically the risk factors set forth in the company’s most recent reports on Form 10-K and 10-Q.

LSI disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

About LSI

LSI Corporation (NYSE: LSI) is a leading provider of innovative silicon, systems and software technologies that enable products which seamlessly bring people, information and digital content together. The company offers a broad portfolio of capabilities and services including custom and standard product ICs, adapters, systems and software that are trusted by the world’s best known brands to power leading solutions in the Storage and Networking markets. More information is available at www.lsi.com.

# # #

Editor’s Notes:

1.		All LSI news releases (financial, acquisitions, manufacturing, products, technology etc.) are issued exclusively by PR Newswire and are immediately thereafter posted on the company’s external website, http://www.lsi.com.

2.		The LSI logo design is a trademark of LSI Corporation.

3.		All other brand or product names may be trademarks or registered trademarks of their respective companies.

Exhibit 99.1

LSI CORPORATION
Consolidated Condensed Statements of Operations (GAAP)
(In thousands, except per share amounts)
(Unaudited)


	Three Months Ended									Nine Months Ended
	September 30,			July 1,			October 1,			September 30,			October 1,
	2007			2007			2006			2007			2006
Revenues	$	727,415		$	669,939		$	492,978		$	1,862,769		$	1,458,497

Cost of revenues		411,866			395,607			276,725			1,071,143			824,565
Purchase accounting effect on inventory		—			47,904			—			47,904			—
Amortization of acquisition related intangibles		64,860			71,310			6,436			141,455			28,453
Stock-based compensation expense		2,824			3,148			1,719			7,916			5,702

Total cost of revenues		479,550			517,969			284,880			1,268,418			858,720


Gross profit		247,865			151,970			208,098			594,351			599,777


Research and development		173,375			192,955			98,625			465,460			292,096
Stock-based compensation expense		8,916			8,978			3,908			22,611			13,073

Total research and development		182,291			201,933			102,533			488,071			305,169


Selling, general and administrative		88,769			97,440			54,878			243,296			176,411
Amortization of acquisition related intangibles		5,714			6,676			—			12,390			—
Stock-based compensation expense		10,035			10,687			5,398			25,245			17,379

Total selling, general and administrative		104,518			114,803			60,276			280,931			193,790


Restructuring of operations and other items, net		101,231			25,920			2,614			119,071			(13,384	)
Acquired in-process research and development		—			176,400			—			182,900			—


(Loss)/income from operations		(140,175	)		(367,086	)		42,675			(476,622	)		114,202

Interest expense		(9,033	)		(9,049	)		(6,556	)		(21,972	)		(19,314	)
Interest income and other, net		11,808			10,790			13,066			33,129			32,912


(Loss)/income before income taxes		(137,400	)		(365,345	)		49,185			(465,465	)		127,800
Provision for income taxes		3,200			12,500			5,575			23,156			17,175


Net (loss)/income	$	(140,600	)	$	(377,845	)	$	43,610		$	(488,621	)	$	110,625


(Loss)/income per share:
Basic	$	(0.20	)	$	(0.50	)	$	0.11		$	(0.78	)	$	0.28


Diluted	$	(0.20	)	$	(0.50	)	$	0.11		$	(0.78	)	$	0.27


Shares used in computing per share amounts:
Basic		715,733			751,114			399,613			623,692			397,408


Diluted		715,733			751,114			403,715			623,692			403,779

A reconciliation between net (loss)/income on a GAAP basis to a non-GAAP net (loss)/income is included below.

Reconciliation of GAAP to Non-GAAP net (loss)/income:


	Three Months Ended									Nine Months Ended
	September 30,			July 1,			October 1,			September 30,			October 1,
	2007			2007			2006			2007			2006
GAAP net (loss)/income	$	(140,600	)	$	(377,845	)	$	43,610		$	(488,621	)	$	110,625


Special items:
a) Stock-based compensation expense — Cost of revenues		2,824			3,148			1,719			7,916			5,702
b) Stock-based compensation expense — R&D		8,916			8,978			3,908			22,611			13,073
c) Stock-based compensation expense — SG&A		10,035			10,687			5,398			25,245			17,379
d) Amortization of acquisition related intangibles — Cost of revenues		64,860			71,310			6,436			141,455			28,453
e) Amortization of acquisition related intangibles — SG&A		5,714			6,676			—			12,390			—
f) Purchase accounting effect on inventory		—			47,904			—			47,904			—
g) Restructuring of operations and other items, net		101,231			25,920			2,614			119,071			(13,384	)
h) Acquired in-process research and development		—			176,400			—			182,900			—
i) Loss/(gain) on sale/write-down of certain equity securities					2,396			(787	)		2,396			(2,216	)
j) Income tax effect		(8,916	)		10,264			1,738			979			1,421


Total special items		184,664			363,683			21,026			562,867			50,428


Non-GAAP net income/(loss)	$	44,064		$	(14,162	)	$	64,636		$	74,246		$	161,053


Non-GAAP income/(loss) per share:
Basic	$	0.06		$	(0.02	)	$	0.16		$	0.12		$	0.41


Diluted*	$	0.06		$	(0.02	)	$	0.16		$	0.12		$	0.40


Shares used in computing Non-GAAP per share amounts:
Basic		715,733			751,114			399,613			623,692			397,408


Diluted		720,317			751,114			431,713			632,563			406,791


*		In computing non-GAAP diluted earnings per share for the three month period ended October 1, 2006, net income was increased by $3,500 for interest, net of taxes, on the $350 million convertible notes considered dilutive common stock equivalents.

Reconciliation of shares used in the calculation of GAAP to

Non-GAAP diluted net (loss)/income per share:


	Three Months Ended						Nine Months Ended
	September 30,		July 1,		October 1,		September 30,		October 1,
	2007		2007		2006		2007		2006
Diluted shares used in per-share calculation — GAAP		715,733		751,114		403,715		623,692		403,779
Dilutive stock awards		4,584		—		1,918		8,871		3,012
Effect of $350 million convertible notes considered dilutive		—		—		26,080		—		—
Diluted shares used in per-share calculation — Non-GAAP		720,317		751,114		431,713		632,563		406,791

LSI CORPORATION
Consolidated Condensed Balance Sheets
(In millions)
(Unaudited)


	September 30,			July 1,			December 31,
	2007			2007			2006
Assets

Current assets:
Cash and short-term investments	$	1,097.9		$	1,158.3		$	1,008.9
Accounts receivable, net		436.0			424.4			348.6
Inventories		218.4			285.0			209.5
Prepaid expenses and other current assets		708.2			252.4			68.7


Total current assets		2,460.5			2,120.1			1,635.7

Property and equipment, net		236.5			246.1			86.0
Goodwill and other intangibles		3,701.4			4,231.8			991.8
Other assets		226.0			227.1			138.6


Total assets	$	6,624.4		$	6,825.1		$	2,852.1


Liabilities and Stockholders’ Equity

Current liabilities:
Other current liabilities	$	746.9		$	699.4		$	526.8
Current portion of long-term debt		—			—			—


Total current liabilities		746.9			699.4			526.8

Long-term debt		718.7			719.5			350.0
Pension, tax and other liabilities		520.4			519.7			79.4


Total liabilities		1,986.0			1,938.6			956.2

Minority interest in subsidiary		0.2			0.2			0.2


Stockholders’ equity:
Common stock and additional paid-in capital		6,335.0			6,453.6			3,106.2
Accumulated deficit		(1,716.5	)		(1,575.9	)		(1,220.3	)
Accumulated other comprehensive income		19.7			8.6			9.8


Total stockholders’ equity		4,638.2			4,886.3			1,895.7


Total liabilities and stockholders’ equity	$	6,624.4		$	6,825.1		$	2,852.1

LSI CORPORATION
Statement of Cash Flows
(In thousands, except where noted)
(Unaudited)


	Three Months Ended									Nine Months Ended
	September 30,			July 1,			October 1,			September 30,			October 1,
	2007			2007			2006			2007			2006
Operating Activities:
Net (loss)/income	$	(140,600	)	$	(377,845	)	$	43,610		$	(488,621	)	$	110,625
Adjustments:
Depreciation & amortization *		96,545			101,599			17,527			216,720			65,693
Stock-based compensation expense		21,775			22,813			11,025			55,772			36,154
Non-cash restructuring and other items		88,155			(29	)		173			88,354			(2,576	)
Acquired in-process research and development		—			176,400			—			182,900			—
Gain on sale of intellectual property		—			—			—			—			(15,000	)
Gain on sale of Gresham manufacturing facility and associated intellectual property		—			—			—			—			(12,553	)
Write-off of intangible assets acquired in a purchase business combination		—			—			—			—			3,325
Non-cash foreign exchange loss/(gain)		7,109			(4,277	)		(941	)		3,221			(472	)
Loss/(gain) on sale/write-down of equity securities		—			2,396			(787	)		2,396			(1,998	)
(Gain)/loss on sale of property and equipment		(11	)		160			(240	)		(9,513	)		(245	)
Changes in deferred tax assets and liabilities		(1,327	)		(5,501	)		4			(6,797	)		24
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business combinations:
Accounts receivable		(6,167	)		104,715			(9,460	)		143,998			3,063
Inventories		49,906			64,896			(10,148	)		95,148			7,158
Prepaid expenses and other assets		1,197			9,299			(7,403	)		35,061			(13,380	)
Accounts payable		(3,567	)		(94,585	)		(9,904	)		(134,621	)		(1,161	)
Accrued and other liabilities		(14,202	)		29,840			13,303			658			17,104

Net cash provided by operating activities		98,813			29,881			46,759			184,676			195,761


Investing activities:
Purchases of debt securities available-for-sale		(31,851	)		(61,606	)		(116,196	)		(154,087	)		(498,408	)
Proceeds from maturities and sales of debt securities available-for-sale		118,897			199,740			96,494			493,029			302,407
Purchases of convertible notes/equity securities		(7,500	)		(3,000	)		(3,000	)		(10,500	)		(8,150	)
Proceeds from sale of equity securities		—			—			2,511			—			6,092
Purchases of property, equipment and software		(36,272	)		(20,211	)		(15,587	)		(76,986	)		(44,244	)
Proceeds from sale of property and equipment		5			1,274			49			13,790			89
Proceeds from sale of Consumer		22,555			—			—			22,555			—
Proceeds from sale of intellectual property		—			—			7,670			—			22,670
Proceeds from sale of Fort Collins facility		—			—			—			—			10,998
Proceeds from sale of Colorado Springs facility		—			—			—			—			7,029
Proceeds from sale of Gresham manufacturing facility		—			—			15,000			—			96,426
Proceeds from sale of Gresham manufacturing facility associated intellectual property		—			—			—			—			5,100
Acquisitions of companies, net of cash acquired		—			517,712			—			465,633			—
Adjustment to goodwill acquired in a prior year for resolution of a pre-acquisition income tax contingency		—			—			1,373			2,442			1,373

Net cash provided by/(used in) investing activities		65,834			633,909			(11,686	)		755,876			(98,618	)


Financing activities:
Issuance of common stock		7,077			16,246			3,868			28,994			36,005
Purchase of common stock under repurchase program		(148,758	)		(400,355	)		—			(549,113	)		—

Net cash (used in)/provided by financing activities		(141,681	)		(384,109	)		3,868			(520,119	)		36,005


Effect of exchange rate changes on cash and cash equivalents		1,497			268			15			1,700			613


Increase in cash and cash equivalents		24,463			279,949			38,956			422,133			133,761

Cash and cash equivalents at beginning of period		725,470			445,521			359,454			327,800			264,649


Cash and cash equivalents at end of period	$	749,933		$	725,470		$	398,410		$	749,933		$	398,410


*		Depreciation of fixed assets, amortization of intangible assets, software, capitalized intellectual property and debt issuance costs.

LSI CORPORATION
Selected Financial Information (GAAP)
(In millions, except where noted)
(Unaudited)


	Three Months Ended
	September 30,			July 1,			October 1,
	2007			2007			2006
Semiconductor revenues	$	530.0		$	484.8		$	313.3
Storage Systems revenues	$	197.4		$	185.1		$	179.7
Total revenues	$	727.4		$	669.9		$	493.0
Percentage change in revenues-qtr./qtr. ( a )		8.6	%		43.9	%		0.7	%
Percentage change in revenues-yr./yr. ( b )		47.6	%		36.8	%		2.3	%

Days sales outstanding		54			57			58
Days of inventory		41			50			59
Current ratio		3.3			3.0			2.5
Quick ratio		2.1			2.3			2.1

Gross margin as a percentage of revenues		34.1	%		22.7	%		42.2	%
R&D as a percentage of revenues		25.1	%		30.1	%		20.8	%
SG&A as a percentage of revenues		14.4	%		17.1	%		12.2	%

Employees ( c )		8,302			9,138			3,884
Revenues per employee (in thousands) ( d )	$	350.5		$	293.3		$	507.7

Selected Cash Flow information
Purchases of property and equipment ( e )	$	13.4		$	8.6		$	6.0
Depreciation / amortization ( f )	$	24.6		$	21.0		$	10.5


( a )		Represents sequential quarter growth in revenues.

( b )		Represents growth in revenues in the quarter presented as compared to the same quarter of the previous year.

( c )		Actual number of employees at the end of each period presented.

( d )		Revenues per employee is calculated by annualizing revenues for each quarter presented and dividing it by the number of employees.

( e )		Excludes purchases of software.

( f )		Represents depreciation of fixed assets and amortization of software.