I note that some of the folks on the thread see "storage" as a major
addition to the LSI product spectrum. Are you in accord with that view? I think that the storage segment is part of the overall strategy of the company. Given their focus on broadband it seems like a natural
In August 1998, LSI acquired Symbios, Inc. from Hyundai Electronics, for $760 million in cash, including assumed liabilities. The transaction, expected to be accretive to 1999 EPS, broadened markets served by the company to include the storage segment. The company now addresses six vertical market segments, each accounting for between 10% and 20% of revenues. Sales are expected to be up sharply in 1999, reflecting the impact of this acquisition. Bookings improved sharply in the fourth quarter of 1998, and are expected to continue this trend over the next few quarters. Margins may narrow in early 1999 because of startup costs at a new wafer fab. Thereafter, margins should improve considerably as capacity is absorbed at the new facility, and fixed costs are spread over a larger sales base. Overall, EPS are expected to rebound to about $0.70 in 1999, from the $0.59 recorded for 1998 (before charges). Looking past 99 I see the growth exploding to 50% yr/yr
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