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

To: patrick tang who wrote (20598)	11/10/1999 12:32:00 PM
From: patrick tang	Respond to of 25814

I know we can get skeptical at LSI's CDMA potential. But this new division at a brand new location represents a lot on $$ investment on LSI. Just the general manager alone will be $300k/yr, not to mention the building, facilities, support personel, engineers, marketing and sales, relocation expanses etc. A lot of cap-ex too since they need to get new equipment. Those nice digital oscilloscopes are not cheap, 2 to 3 of those will run you $200k. A new analog/digital VLSI tester down there will cost you a cool $2M+. Even a 'cheap' HP tester will run you $500K+. A pick-n-place handler will run you another $100k+. Takes an immediate hit on your cash. Love to have more info so we can analyze this thing more, but there comes a time before the $$ sales arrive that we just have to trust management to do the right thing. To me, for them to set up a new division so early in the game is a big time move that shows real confidence in their product offerings. patrick