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To: Jock Hutchinson who wrote (22989)	10/24/2000 4:40:02 PM
From: akmike	Respond to of 25814

Hi, Jock-I would also like an update on Silterra. BTW I would be shocked if the Q4 guidance isn't conservative.

To: Jock Hutchinson who wrote (22989)	10/24/2000 4:55:35 PM
From: dr_elis	Read Replies (1) \| Respond to of 25814

What are you asking for when saying someone (LSI?) should either "...put up or shut up on CDMA announcements" - Please elaborate! Michael Nice earnings, congrats to all longs (including myself, could not resist at the recent lows....)

To: Jock Hutchinson who wrote (22989)	10/25/2000 10:07:08 AM
From: Jock Hutchinson	Read Replies (3) \| Respond to of 25814

To all--Miscellaneous Notes from the Conference Call Only one customer sun contributed over ten percent of revenue, and that was SUNW at eleven Operating margin increased to eighteen percent Record booking in three of four markets Japan was slightly down because of PS II Sony will be on tract to ship 3 million units by March 2001 Storage components all strong Design wins in storage is ahead of expectations Storage systems was robust 85 of revenue was chips and 15 was in storage systems Gresham is going ahead on schedule Upgrading Colorado fab Laminate flip chip packaging is becoming important in markets and LSI is leader Are comfortable with 1.78 bottom line in 2001 Early broadband to home will drive products anywhere time is the keys to communications growth All time record for design wins for communications group Booked over 100 design wins in G12 technology in communications LSI leads in market share of switches Eventually will market SRAM functionality Six design wins for CDMA base band and commitments of customers for several million units See no real shortages on Fibre Channel Enabling technology is for Fibre Channe is Gigablaze LSI is the only company in world that has it available in CMOS and this is why they have it sewn up PC and wireless are concerns of overall market. But the wireless problem is GSM and LSI does not participate in GSM except in things like Base Stations and that does not fluctuate as much as the handhelds. CDMA is just beginning for LSI and PC does not affect LSI at all LSI sees a very strong market virtually world wide Sony is just a little slower, but it will still ship 10 million units of PSII this year maybe 30 days behind Overall order input rate and revenues attached to design wins is higher still, and that is the best indicator of how things will look 12 to 24 months This is a communications driven semi market and the driver is the build out of the infrastructur--not just the internet infrastructure but wireless as well All time record for Europe which usually sees seasonal slowness in this quarter. Europe is 100 percent telecommunications Doubtful that AMD will impact revenue over the next 12 months Bottleneck in wireless is base band processor and flash memory and goal is to work with AMD to improve this interface. Expect prototypes next year in Q1 PS I us running ahead of what was expected this is in excess of ten million units a year One in three US households has a Playstation Gross margin is slightly lower (44 percetn versus 45 percent) due to more aggressive ramp and retooling in Colorado Margins will pick up again in Q 1 600 million in cap spending for this and next year Substantial growth in Silterra will hold capital spending for next year Fab two at Tskuba runs at full capacity--getting more than 100 percent capacity Overall Fab utilization capacity is 90 [percent That is active capacity, and they are targeting a ten percent quarter by quarter ramp R&D was higher because they made a couple of acquisitions Data Path specializing in Analog has 120 engineers and this was focused ADL solutions This reflects the increase on R&D with not a lot of revenue SG&A will see a continued modest decline, and Over time R&D will grow slightly Problem is that during a glut in the market many end manufacturers went to the Dell model, but this is not that realistic with external manufacturers in tight supply times, and as a result there can be supply shortages in such basic equipment as capacitors. Thus, LSI can be affected short-term by such shortages as was the case last quarter Wafers per quarter at Gresham are targeted for 4500 per week at the end of the first quarter next year Different technologies have different lead time Ths more advanced stuff has greater increase in manufacturing cycle typically, they would expect a ten week manufacturing cycle and they are out to as much as twenty No difference in product area, the lead times are more a function of technology required to make the product.Therefore because the lead times on .25 and .18 are longer Q 1 is already showing strong demand. Expect a 365 million share count for Q4 and a tax of 27 percent for 2001