LSI's results were not as strong as I hoped for, especially the sequential increase in sales. Only 2.6%. Cost and expenses are heading in the right direction. IMHO, Wilf need to give a very good forward looking statement in terms of actual % sequential sales increase going forward or even state actual book to bill ratio (like VLSI saying b-t-b was 1.2 for Q1) for Q1. Hopefully forward looking is a bit better than 2.6%. If 'strong' Q1 is only 2.6%, just saying 'strong' Q2 or 'record bookings in Q1' will disappoint a lot of people. I believe most analysts were like me and expecting sales increase of ~5%.
At 2.6% while other people are doing 5% to 7% or VLSI's 9%, the whole upturn will pass them right by. I like the 8 cents on operations, and they seem to be heading towards their stated operations model. They need to do a whole lot better in sales.
March 31, Dec. March 31,
1999 1998 1998
Revenues $456,837 445,385 $324,850
Costs and expenses:
Cost of revenues 297,066 287,49 8183,106
Research and development 75,423 79,620 63,842
Selling, general and administrative 60,315 66,169 43,752
Total costs and expenses 432,804 433,287 290,700
Sequential sales increase 2.6%
Cost and expenses as % of sales:
Cost of rev. 65.0% 64.6%
Research and development 16.5% 17.9%
S, G & A 13.2% 14.6%
Total costs and expenses 94.7% 97.3%
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