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

To: E. Graphs who wrote (7800)	11/14/1997 7:00:00 PM
From: shane forbes	Read Replies (2) \| Respond to of 25814

E! I agree with you about the fact that digital cameras are a big thing for LSI. However not yet la-la land I think. My guess is that like all things the prices of consumer related stuff has to hit certain magic price points. I don't believe we are anywhere close to an acceptable price point yet. But we are definitely getting there. On the other hand no nonsense like the DVD disputes messing up the market so this is a very good thing. Yet don't you still need high quality printers to print out pictures comparable in quality to the usual 35 mm photos? I think there's the rub. For now. Undeniably the advantages are there for LSI and for this market. Yet it would be nice if LSI actually indicated what share of the chips that go into these gadgets are theirs. And on the negative side Kodak is still suffering in the digital camera arena isn't it? I hope LSI has captured a number of design wins in this area. They have the opportunity to do so (guess). Yet if I remember the Dataquest rankings, in LSI's press release, they did not mention that they were leading or 2nd in this area (they mentioned being 2nd in set top boxez and 2nd in something else). Let me caveat this by saying I did not see the Dataquest report - they may have categorized thingns differently. Bigger than Sony PlayStation would mean a run rate of 250 million a year. I think that might happen but not next year (guess). Still I first bought LSI as a play on the consumer electronics industry. That same Dataquest report said LSI saw 42% increase in revenue in consumer electronics chips in 1996 - by far the biggest increase (Though a good chunk of this was probably the PlayStation and STBs - still a real good increase and bodes well for the long term. If just those DOPES would stop arguing about DVD and make it cheaper and standardize and...)

To: E. Graphs who wrote (7800)	11/14/1997 9:35:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 25814

E! I went back and checked the Digital camera story. Here are some of the wins that LSI has: Minolta, Panasonic, JVC, Sharp, Sony. By now they probably have others. When Corrigan announced the DCAM chip I remember him saying "ongoing discussions with several of the top 10 makers and we expect to sign up more" (heavily paraphrased - based on shane's DRAM!). When I heard that I was salivating. I think when they made the initial Minolta announcement the stock went up a few points. It was and most definitely is very significant. I also wanted to elaborate further on the run rate of 250 million in 1999. Expected market for digital cameras is around 50 million cameras in 1999. If LSI does have a big chunk of this market (though like I said before in my previous post - strange that it was not mentioned in DataQuest's analysis) you can see how huge this could be. 20,000,000 chips at $20 a pop translates to 400 million in revenue in 1999. This makes some big assumptions - 40% market share and $20/chip which I just tossed in there. Low end assuming LSI gets 20% then even at 10,000,000 chips and $15 a chip this is 150,000,000 - not too shabby huh! (I think the PlayStation chip is in this $12-18 area - guess.) I'll try and find updated numbers on this.