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

To: telecomguy who wrote (25166)	8/19/2002 1:27:36 PM
From: E_K_S	Read Replies (2) \| Respond to of 25814

I do not think so as LSI Logic acquired San Jose-based DataPath Systems(in a stock transaction valued at $420 million)for their ADSL technology. DataPath is a communications-chip company with a full pipeline of standard product offerings, including ADSL (asymmetric digital subscriber line), cable modems and high-performance transceivers. What is interesting is Broadcom is developing VoIP applications using LSI's technology. (http://www.lsilogic.com/media_room/corporate_info/corporate_milestones.html) "...· Broadcom Corporation licenses LSI Logic's ZSP™ digital signal processor (DSP) core for use in its voice-over-IP applications. This announcement validates the company's strategy to offer the ZSP digital signal processor as an open architecture to high-volume customers in the global communications market...." Therefore, I think LSI acquired ParaVoice Technologies for their engineers and technology to help integrate current and future DSP applications. It's potentially a huge growth business and once the open standards are finally resolved, a systems chip set can be manufactured and sold in quantity for all of those set top boxes. Our CEO has acquired several new core assets in the last few years to leverage this business once it matures. I also like how LSI is positioned in the storage business too. These two businesses should do quite well in the next up cycle. VoIP applications are really further out but both DSP (CODEC technology acquired from C-Cube)and storage systems on a chip (RAID, UDMA etc) should generate huge revenues now and through 2004. The stock is priced pretty close to current asset value and as we begin the next up cycle, LSI has lot's of cash on hand to ramp up production. EKS