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LSI's Storage Solution for Xyratex

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Recently declared, California based LSI Corporation’s (LSI) 12Gb/s SAS technique has been adopted by Xyratex for its next-generation12Gb/s storage portals. Xyratex selected LSI Corp. given its highly developed technology coupled with flexible, scalable and integrated platforms, specially designed to meet the mounting demand of its clients.

This association will help Xyratex to deploy the company’s I/O controller and expander platform, powered by DataBolt bandwidth technology to enhance Xyratex’s data storage performance. Furthermore, LSI Corp.’s 12Gb/s SAS technique along with its PCI Express 3.0 portals will provide a user-friendly and adaptable platform to Xyratex’s cloud-based clientele.

There seems to be a growing need for high storage in the world today as the number of data-based applications is increasing at a rapid pace. At this juncture, LSI Corp.’s latest technology would surely provide an effective data storage solution to Xyratex.

LSI Corp. has been taking various strategic steps to improve its business model and transform itself into a storage and networking company over the past two years. The company’s continuing adoption of newer storage protocols such as SAS and ramp in new entry-level storage systems may steadily improve its position in the hard drive market.

Even though LSI Corp. globally established itself, it should be aware of the tough competition prevalent in the industry.  Ominous rivals of the company include AuthenTec, Inc. (:AUTH), Mellanox Technologies, Ltd. (MLNX) and Curtiss-Wright Corp. (CW) who are exhibiting striking results.

The current Zacks Consensus Estimates for LSI Corp. are 13 cents and 58 cents for the second quarter of 2012 and for 2012, respectively. The estimates represent year-over-year growth of 82.14% for 2012 and 52.63% for 2013. As the current macro-economic conditions continue to be challenging; the company currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. However, we presently maintain our ‘Neutral’ recommendation on the stock.

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