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Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: The Verve who wrote (19785)	8/23/1999 12:31:00 AM
From: Jock Hutchinson	Read Replies (2) \| Respond to of 25814

For starters, you got companies like XLNX and ALTR that are growing by 30% a year peddling the FPGA chips, and about 75% of that business is the sort of business that LSI will attempt to capture. So we are talking about a $275 million dollar market that has just potentially opened with ongoing growth prospects of 30% a year. If LSI grabs a third of this market, that would add about 12 cents to the bottom line within a year's time. Moreover, the addition of FPGA functionality to ASSP and ASIC chips is going to be almost a requirement--yet one that will add greater profitability to the networking and telecommunications division in particular. Since these two divisions account for about 35% of the total revenue stream, my best guess would be another $100 million in revenue or another 10 cents in profit over a year's period of time. Thus, given the current valuation of 25 times earnings, it is conceivable that FPGA functionality will add about six bucks to the stock's price going forward from Jan '01. These are of course WAGs.