The best news I got from the call is that Sony is now just 11% of the business. Playstation is only a part of this, so the fear spread by K about LSI losing 20% of its business if it loses Playstation is just a bunch of bunk. LSI is the leading independent supplier of DVD chips and expects to retain its 25 percent share of the market. That is a tremendous growth area for the next one to five years. It is in more high quality DCAM products. Wilf said that although it is a small area right now, they are flying off the shelves, and will also not see seasonality in the next year as the price declines. Fibre Channel will explode. LSI still has 80% of the design wins in Fibre Channel. This makes Symbios a superior purchase both in terms of synergy, and because ADPT is oriented to the PC, whereas Symbios is oriented to the server market. K's is totally full of it when he talks about LSI's inability to communicate with analysts. There is a clear and apparent open relationship with with the analysts, but the problem has been the lack of the public access to hearing this. With the 800 number, anyone who cares to draw his own conclusions is free to do so.
If I look at my holding at LSI from a short term perspective, it has been a disappointment. But over a two and one half year time period, it is just as promising as it appeared to be over a two year time period. No one bought this stock at the beginning of this year expecting great things from LSI because we had been warned, but the market always anticipates, so it is anyone's guess as to when LSI explodes to the upside. Their bright future is intact, and K is covering his short that he fought so hard to protect. |
