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

To: E. Graphs who wrote (20976)	12/31/1999 6:15:00 AM
From: Paul Lee	Read Replies (1) \| Respond to of 25814

theinternetanalyst.com Sudeep Balain SoundView Financial Group Focus on LSI Logic: Sudeep Balain Semiconductor Analyst, SoundView Financial Group Interviewed by Nate Hardcastle The Internet Analystsm recently spoke with Sudeep Balain, who follows semiconductor companies for SoundView Financial Group. He said he likes the prospects of LSI LOGIC (LSI: research, earnings), which should benefit from increased usage of Net-enabled devices. [THE INTERNET ANALYST - NATE HARDCASTLE] Why do you think LSI LOGIC will continue its rapid growth? [SUDEEP BALAIN] The key driver will be the growth of the Internet. As more and more devices become Net-enabled, the companies that make those products increasingly will need LSI's Internet-enabling semiconductors. [NH] The company was around before the Web. How has it managed to focus its business on the Internet? [SB] During most of its history, the company made chips for high-end computers and traditional telecom switches. But about two years ago management made a prescient decision to focus on chips for Internet-based devices and networks. It now has six business divisions: networking, computers, storage components, storage systems, consumer products and wireless/telecom. LSI LOGIC makes application-specific integrated circuits for each of these markets. [NH] Does the firm have a strong client base? [SB] Absolutely. Customers include SONY (SNE: research, earnings), CISCO SYSTEMS (CSCO: research, earnings), NORTEL NETWORKS (NT: research, earnings), 3COM (COMS: research, earnings), SUN MICROSYSTEMS (SUNW: research, earnings), HEWLETT-PACKARD (HWP: research, earnings), and most of the major telecommunications companies. [NH] Anything else you like about the company? [SB] LSI LOGIC makes only application-specific chips; that means the firm knows exactly how many chips it needs to manufacture. This enables it to avoid the inventory problems that can be so troublesome for other semiconductor makers. [NH] What are your revenue growth estimates? [SB] I expect revenue to grow 27% in fiscal 2000 and 25% in 2001. The company could generate 25%-to-30% growth for several years after that. I have a price target of $70 on the stock. Sudeep Balain Semiconductor Analyst, SoundView Financial Group Companies followed: ATMEL (ATML: research, earnings), ALTERA (ALTR: research, earnings), XILINX (XLNX: research, earnings), LSI LOGIC (LSI: research, earnings), XICOR (XICO: research, earnings), QUICKLOGIC (QUIK: research, earnings)