Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: uu who wrote (20343)	10/21/1999 9:34:00 PM
From: patrick tang	Read Replies (5) \| Respond to of 25814

Things I liked about the cc: 1. They formed a new division for Wireless. The CDMA must be doing great. Single chip CDMA is out. Now if they can get 50% market share in by '01 .... 2. The flash stuff is doing great, more business than they knew what to do with. They were really lead into it by customer demands - CSCO, Erricy, Alcatel, Nortel ... wow!! Should start to ship 1st half of '00. 3. The disc drive guys are looking towards integration to lower cost and the drive-on-chip got good design ins that will ship next year. I think that will eat into ADI/TXNs of the world. 4. They are into DSL stuff too now. The ZSP seems to be getting good design-ins, DSL, wireless, voice over IP... Should have some customer announcements for V-over-IP in near future. 5. Gresham ramp and gross margin target are ahead of schedule. 6. Customers have probably 2 suppliers per product. If one cannot supply product because of capacity constraints, they go the the other guy. LSI has plenty of capacity and has already picked up some business because of that. 7. Don't see standard products replacing ASIC in LANs/networking stuff. 8.'00 capex ~$350M - LSI will be throwing off a lot of cash going forward. I hope that might mean they won't have to sell more stocks to raise money to build the next fab. 9. Y2K - don't know what IBM is talking about. They customers are more in line with Microsoft - full speed forward. No inventory build up, still on Dell model. Dell model all done, can't really be re-done one more time and take the industry down. Because of Taiwan quake, people are talking hard looks at Dell model though. 10. Industry is forecast to grow 20% to 25% next two yrs, LSI should beat industry. Should be a shortage of 0.25um/0.18um capacity for the next two years. They see situation now as early '94/'95 up-cycle. e.g. the equipment guys are still not shipping as much as they were shipping at the peak at '96. Might have bump in '03/'04, but might be mild because the Internet growth is so strong. Internet growth is really the second PC and should provide strong growth for years to come. 11. Coreware at 50% now and might grow to high 70% in a couple of years. Good IP revenue. Because of Coreware, the software content is also growing. 12. They have great leadership position in STB and Digital Terrestrial TV in European market. 13. No mention of eDRAM. Business good across all products, all markets. EVen Europe which has traditionally slow communications market in summer was good this year. patrick