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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (49871)	7/26/2001 9:20:34 PM
From: Proud_Infidel	Respond to of 70976

LSI posts loss, sees late-year recovery By Reuters July 26, 2001, 5:05 p.m. PT news.cnet.com Specialty chipmaker LSI Logic on Thursday reported a second-quarter loss in line with analyst expectations and said sales would fall again in the third period, with modest growth returning in the fourth quarter. Milpitas, Calif.-based LSI said it had a loss before amortization of goodwill and other items of $20.9 million, or 6 cents a share, compared with a year-ago profit of $98 million, or 29 cents. Sales fell 28 percent to $465 million from $644 million. Analysts polled by First Call expected an average loss of 7 cents a share. For the third quarter, LSI, one of the largest makers of application-specific chips for devices ranging from video game consoles to network routers, said it sees sales falling 10 percent to 15 percent from second-quarter levels and a per-share loss before goodwill and other items of 31 cents. LSI joins virtually every other semiconductor company in getting hit by the high-tech slowdown. "There's no question at this point in time that this is the most rapid and severe decline that the semiconductor industry has ever experienced in its 40-year history," CEO Wilfred Corrigan said during a conference call with financial analysts after the announcement. "No segment of the electronics industry has escaped." While industry estimates late last year pegged overall semiconductor growth in 2001 around 20 percent, analysts now say worldwide sales could fall 20 percent. Including special items of $291.6 million, LSI Logic reported a loss of $312.5 million, or 91 cents a share, compared with net income of $70.6 million, or 21 cents. The year-ago period had special items totaling $27.7 million. One of the lone bright notes was Corrigan's belief that inventories among its customers and throughout the high-tech food chain are dwindling, following an overinvestment in chipmaking capacity in 2000. "Inventories are coming down quickly," Corrigan said. At the same time, the highly touted notion that increasing use of business management software and the Internet would boost efficiency turned out to be exaggerated, he said. "The information systems between (different high-tech companies and industries), despite publicity, are not well-connected," Corrigan said. "So it's difficult to get an accurate picture of how much inventory is left out there. "We now believe LSI in total will bottom in (the third quarter) and see some modest growth" in the fourth quarter, he said.