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

To: BWAC who wrote (25688)	11/13/2003 3:06:08 PM
From: shoe	Respond to of 25814

S&P comments on LSI Logic Thursday November 13, 2:52 pm ET (The following statement was released by the rating agency) NEW YORK, Nov 13 - LSI Logic Corp. (BB-/Stable/--) announced its intention to separate its storage systems operation from its mainstream semiconductor business, in an IPO during the March 2004 quarter. LSI Logic may distribute some or all of the remaining portion of Storage to shareholders at a later date. Standard & Poor's Ratings Services said that the action would have no immediate effect on its rating on the company. Storage had sales of $104 million in the September 2003 quarter, about 23% of LSI's $450 million in quarterly sales, and had operating profits of $13.3 million in the quarter. The potential future separation of the Storage unit would moderately reduce LSI's profitability, which has been weak for the rating. LSI continues to have good customer relationships and ample liquidity, although the separation will somewhat reduce its business diversity. Improving business conditions should contribute to operating performance in the next few quarters, offsetting the potential loss of the storage unit's cash flows.