Here's a good post on the Yahoo thread about LSI's results. I guess SI posters have given up on the company.
Re: great qtr
by: nobodydownhere
01/28/04 06:32 pm
Msg: 93071 of 93128
yes, pretty good Q - especially considering that sesonality caused consumers to go down 23% sequential and they still had the sequential gains.
Misc, ramblings from the cc:
1. RapidChip seems to be getting traction and not just empty PR words. They seem to be starting to get to learn about the particulars of the market now. Like what they said about the hard d guys. If they can penetrate that, they can grow revenues and up fab utilization very fast. That's one huge high volume market. If a market really ixist for the RC, LSI can make out like a bandit, they are way ahead of everyone else in technology, mktg/sales knowledge/infracture etc., from TXN to ADI to AGRA to FPGA guys. They expect RC to hit a run rate of $100M/yr by the end of this year.
2. Enterprise comms is finally coming back, hence they could reclaim some written off inventory and got the sequential sales increase. So there leaves only one segment that has not come back - telecom, and wilf said starting to see life. Hopefully RC can penetrate this segment too, no reason why it shouldn't.
3. Storage is good, both systems and chips. Components grew 14%/36% sequential/yty and systems grew 10%/26% yty. Good new product announcements that should keep their growth going. Think they are really getting the ASSP designs down. They've been trying to penetrate the ASSP market for quite a while now, and finally they are showing some success. This is where the fast growth is, not ASICs. Also can't image how they can run an ASICs biz on a foundry model, but they surely can run an ASSP biz on that model. So in all, they are doing a good job in transistioning to a foundry model, IMO.
3. With their DVD stuff, they are getting good exposure in China, and this seems to have carried over to other things too. China will continue to be the buzz word going forward, and LSI has really positioned themselves for it.
4. Financially strong, throwing off cash and no deb repayments this year or next. They are fully in charge fo their own destiny. This company has got one of the lowest P/S compared to its peers. Wilf still need to bring the profits up. I think we will see analysts upping their forecasts but reamining neutral until Wilf can show earnings in the April cc. |
