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To: DavidG who wrote (10199)	2/26/1998 7:04:00 PM
From: shane forbes	Respond to of 25814

David - thank you for that. Always good to have that dagger not just in the heart but also turning and twisting in there. I just completely got out of VLSI so the twister effect is lessened somewhat. Still effect on LSI should be interesting. There is something funny going on in that comm. world. --- The window is beginning to close shut (i.e, earnings warnings beginning) and as I check LSI has sucked. What a surprise... Funny funny world... What will be interesting is to see if LSI warns if earnings will be more pitiful than expected. They have learnt from their past foibles so if nothing happens in the next week or 10 days LSI should meet those estimates. (I'm secretly hoping for much more. Why? I wish I really knew.)

To: DavidG who wrote (10199)	2/26/1998 7:20:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 25814

What was in the VLSI story that might be relevant to LSI: --- VLSI attributed the weak quarter to slowing orders and shipments, primarily in wireless communications and consumer entertainment due to cyclicality, as well as uncertainties related to the Asian economic crisis. The company also said its quarter was hurt by inventory adjustments underway at a number of customers. VLSI said it expects shipments to return to more normal levels during the second half of the year. In the meantime it is reviewing and implementing plans to stimulate revenue growth and control expenses. ---- There's those famous words: "Inventory adjustments", add in "Asia", and "wireless communications" and tomorrow should not be a fun day for VLSI shareholders. Or was all of this in the price of the stock!!! Also LSI has mentioned consumer entertainment cyclicality but LSI tended to pooh-pooh it using PlayStation inventory at retailers as an example. On another topic I think VLSI does a really good job keeping its shareholders apprised of goings-on. So their problems here may just highlight how difficult it is for these types of companies to guage demand. Maybe LSI is to be excused (somewhat) for similar sins in the past? --- All the dangers of having only a few customers coming to haunt VLSI just as it has done so many times to LSI. ----