WSJ's notes on the meeting <g>
Dow Jones Newswires
LSI Logic CEO Sees Small Acquisitions In
Near Future
Dow Jones Newswires
MILPITAS, Calif. -- Custom chip maker LSI Logic Corp. (LSI) expects to
make some small acquisitions in the near future related to acquiring new
intellectual property, the company told Dow Jones.
Chief Executive Wilf Corrigan said at the company's annual meeting and in an
interview that he expects to make acquisitions smaller than its $767 million
acquisition of Symbios Logic last year and its pending $100 million acquisition
of Seeq Technology Inc.
Corrigan said the company will acquire smaller companies to fill out its library
of intellectual property that it uses its systems on a chip, or large chips that are
pieced together in building-block fashion for specific customers.
In addition, Corrigan reinforced predictions that the company would hit $2
billion in revenues in 1999, up from $1.49 billion in 1998, thanks in part to
growth of its newly acquired Symbios storage business and fast growth in
communications chips. He said gross margins could return to historical highs
dating to 1995, before a three-year semiconductor slump hit.
In the year 2000, Corrigan said he had high hopes for revenues related to
chip sales to Sony, since LSI is supplying a communications chip to its
upcoming Playstation 2. Corrigan said the company has considerable new
capacity at a factory in Gresham, Ore., and is positioned to take advantage of
the upturn in the semiconductor industry.
"Based on the typical cycle, the next two to three years should be good for
the industry and for LSI," Corrigan said.
He said that demand was increasing across the board in most product lines
and geographies and there appeared to be little inventory in the pipeline.
"We're at the transition where they is a potential for a shortage of capacity,"
Corrigan said.
- Dean Takahashi; (408) 406-3132 |
