Jock, R&D expeditures of 20%, expressed as a % of revenue, is extremely high (as you say), I'd say practically outlandish. Off the top, either the R&D was too high, or the revs too low, or both, or LSI was collecting labor and/or material into the R&D bucket they shouldn't. Just an observation without looking deeply at all. Now, if they did indeed develop the right products, it should be time to reap the benefits. LSI doesn't seem to go into periods where they "lose the recipe" in processing from time to time, like my unfavorite company, AMD. Should be good.
Tony |
