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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (12430)	6/16/2000 10:58:00 AM
From: foundation	Read Replies (1) \| Respond to of 13582

((("Qualcomm Senior VP in Korea....comments on royalty rates."))) The royalty issue, one of the primary QCOM "liabilities" noted by its enemies, may well become a primary advantage as this story plays out. The number of companies trying to get a piece of the (W)CDMA IP pie reminds me of fitting as many circus clowns as possible into a small car. Bottom line - (W)CDMA will be more expensive and confusing to license. Leaving QCOM out of the picture for the moment, let's also expect litigation between remaining parties. DoMo and Europe will surly butt heads as concept grows closer to reality. Just think! 20-30 vested parties chewing at each other's ankles. And no final move can be made without an accord with QCOM. Love it. regards, blg

To: slacker711 who wrote (12430)	6/16/2000 11:14:00 AM
From: Perry Ganz	Respond to of 13582

LSI on CDMA bolded the part on CDMA I think this is very positive the more the merrier, competition is good especially when they mail you checks win or loose DJ LSI Logic EVP: Commun Chips Sales Growth Above Target Dow Jones News Service ~ June 16, 2000 ~ 10:17 am EST By Rick Jurgens PALO ALTO (Dow Jones)--LSI Logic Corp. (LSI) is seeing "extremely strong" bookings of new orders, according to Executive Vice President John Daane. The company is "very comfortable" with the analsyts' consensus estimate for the current quarter, he said. Twenty-one analysts surveyed by First Call/Thomson Financial see LSI posting net income of 29 cents a share for the second quarter, which runs through June, up from 11 cents a year ago. LSI expects to grow revenue 8% to 10% sequentially in the three remaining quarters of 2000, Daane said. First-quarer sales were $615 million. The Milpitas, Calif., semiconductor maker expects to see year-to-year percentage growth in communications sales "certainly in the high 60's and we'll see if we can get it into the 70's," Daane said. LSI's previously stated target was 60%. The booming communications segment is expected to account for 50% of total sales during the third quarter. Communications sales are expected to reach $1.3 billion to $1.4 billion in 2000, up from about $800 million, or 39% of total sales, in 1999, according to Doug Norby, the chief financial officer. LSI's communications chips are used in such products as data network routers and switches, set-top boxes for advanced cable and telephone networks, server computers and wireless devices. LSI's other products are data storage systems and chips for computer networks. The company's stock closed Thursday at 61, down from a 52-week high of 90 3/8 on March 10. The low was 21 11/32. LSI has had a boost from recent acquisitions of small companies with technology that fills holes in LSI's current product lines. By mobilizing its sales force and introducing new products to existing customers, LSI can quickly boost sales above those posted by the acquired companies, Daane said. For example, LSI expects to post $30 million in sales of Ethernet chips using technology which came with last year's $106 million purchase of SEEQ Technology Inc. LSI's original sales target for 2000 was $20 million but it sold $5.5 million in the first quarter alone. LSI expects similar results from its pending $420 million deal to buy DataPath Systems Inc. which makes chips for ADSL and other broadband communications networks. That deal should boost LSI's sales by $100 million in 2001 and $300 million in 2002, Daane said. LSI also has begun a challenge to Qualcomm Inc.'s (QCOM) dominant position as a maker of CDMA-standard chips for wireless telephones. CDMA is used in about 30% of all handsets globally. LSI decided to take on Qualcomm because CDMA technology is likely to be used in more advanced wireless networks, Daane said. "Late this year and next year you'll see a significant amount of market share taken by LSI," he said. LSI has four foundries that produce chips from silicon wafers. "Because of the tremendous growth of the industry, capacity is strategically important," Daane said. While smaller companies have opted to reduce capital expenditures by outsourcing wafer production, LSI is too big to rely heavily on third parties, he said. LSI does outsource packing and assembly and will gradually increase its reliance on third-party wafer fabrication to about 25% from 6%, he said. Communications has fueled the current boom in the semiconductor industry. But always looming in the background of this historically cyclical business is the awareness that no matter how good things get, they're sure to get worse. Daane said that LSI has some cushion against a downturn. "Our products are not commodities" for which customers can easily find substitutes, he said. As a result, he added, "our pricing structure does not change much either in the up cycle or in the down cycle." So with no end to communications expansion in sight, LSI has "the ability to keep growing revenue very fast even during the down cycle" for semiconductors, Daane said. -By Rick Jurgens, Dow Jones Newswires; 650-496-1367; richard.jurgens@ dowjones.com (END) DOW JONES NEWS 06-16-00 10:17 AM