LSI Corporation Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : LSI Corporation

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: vigaits who wrote (25690)	11/27/2003 3:54:37 AM
From: uu	Read Replies (3) of 25814

Here is some speculative thoughts (based on past experience with other companies and in particular with a company called Informix Software). - In 1999 Informix Software (then #3 in databse) bought a small Software company called Ardent for about $900 million in cash and stock. Ardent's CEO becamse a member of the board of Informix. - In arly 2000 Informix (the money losing databse company competing with the likes of Oracle, Microsoft, and IBM) fired its CEO and replaced him with the former CEO of Ardent (Peter Gynes). - Mr. Gynes within 6 months divided the company into 2 seperate companies: Informix Software the database company, and Ascential Software (or his former company Ardent). Informix (the database company) was losing money while Ascential (i.e. Ardent) was about to get a life of own and make money. - Mr. Gynes then cleaned the company's balance sheet to the best of his capabilities (i.e. getting rid of all its debt), and getting rid of the non-essential employees. - within 6 months from the day he became the CEO, in 2001 Informix Software (the database company) was sold to IBM for $1 billion in cash, and Ascential Software remained an independent entiry with now having over $1 billion in cash and no debt! :) ===================== Based on above and without drawing any conclusions I am observing the following: - LSI is being divided into 2 seperate companies: a) LSI Logic Corporation (i.e. the semi conductor segment which currently is losing money), b) The storage segment (which is showing to have a life of its own and in my view will be making good profits). - An attempt is being made to clean up the balance sheet (e.g. calling on the convertible notes early). - The ASIC segment has become a highly competitive market with profit margins, and the rate of revenue growth being far less than they were a few years ago. (sort of like how the database business in software has become). ----------------- Does this mean LSI is being set up to be sold to some bigger fish out there who is only interested in the ASIC/semi segment of the company? hmmmm..... an interesting speculative idea! :) Time will of course tell. And again please keep in mind I am just speculating (sort of like watching a movie and then trying to predict how the movie ends)! :) Regards and happy thanksgiving -Addi

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next