LSI Logic Reduces 1998 Symbios In-Process R&D Charge
Company's Business and Earnings Outlook Positive
MILPITAS, Calif., March 3 /PRNewswire/ -- LSI Logic Corporation (NYSE: LSI) today revised its in-process research and development charge, associated with last year's Symbios, Inc. acquisition, from $225 million to $146 million.
"We have decreased our Symbios acquisition-related in-process research and development charge to conform to our understanding of the present position of the Securities and Exchange Commission on the calculation of these charges," said Doug Norby, LSI Logic executive vice president and chief financial officer. "This adjustment will modestly increase our quarterly goodwill amortization by approximately $2.5 million, or about one cent per share per quarter." The details of this change will be presented in the company's Form 10K, which will be filed with the Securities and Exchange Commission shortly.
"We are continuing to experience strengthening demand and believe LSI Logic is well-positioned for a semiconductor industry upturn. We have completed the integration of Symbios, announced our intent to acquire networking leader SEEQ Technology, commenced manufacturing in our new Gresham, Oregon fab, initiated a comprehensive restructuring plan and are taking focused action steps to achieve our new business model. We are in the right markets at the right time and we have the engineering expertise and technology to provide the system-on-a-chip solutions for our high-volume customers. As evidence of this, we announced earlier this week our collaboration with Sony on the next-generation PlayStation video game console." |
