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

To: Andy M. who wrote (25104)	7/24/2002 11:54:50 PM
From: E_K_S	Read Replies (1) \| Respond to of 25814

Hi Andy - Was there any mention regarding LSI's recent purchase of the Mylex RAID business or their storage business in general? From what I read, by buying Mylex they obtained additional sales channels for their other storage products. The cash transaction is anticipated to close during LSI Logic's third quarter ending September 30 and is expected to be accretive to LSI Logic earnings. (http://www.enterprisestorageforum.com/industrynews/article/0,,1291_1380041,00.html) I posted this earlier regarding LSI Logic Storage Systems: (http://www.theregister.co.uk/content/53/26006.html) From the article: "...LSI Logic Storage Systems does most of its business selling storage boxes which are relabeled by suppliers such as IBM, Sun, Compaq and HP. It suffered badly in the overall storage market downturn last year. While overall revenues fell by around 18%, LSI Storage Systems saw its revenues almost halved, to $211m. Santoni insisted its revenues are growing again. For its first quarter this year, the organization saw a revenue of $59.9m, up from $52.4m in the previous quarter, but down on the $62.2m seen in the first quarter last year..." ======================================================== My guess is that the MYLEX purchase will add $25-$30 million per quarter in additional new revenues to the LSI Logics Storage Systems division. It could be less depending on how deep they cut out non-profitable product lines but as you can see, it is a significant contribution to this division. As a stand alone company, MYLEX had $36 million in sales for their March 1999 quarter. Gross margins were around 30%. EKS