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

To: Tony Viola who wrote (12293)	5/11/1998 5:04:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 25814

Tony: RE: A couple of more quarters and all that LSI R&D starts turning into (nicely) increasing revenues and earnings? Here's something interesting - LSI spent I think 900 million for cap.exp the last 2 years (guessing) + say 400 million in R&D (guessing). Add the 2 and you get: 1.3 billion. LSI's revenue the last 2 years is: 2.6 billion. Thus 50% of LSI's revenue went into R&D and cap. ex. I don't think you'll find too many 1+ billion in revenue companies spending this much for the future (though I should check before making such a claim!) Now make the assumption that these are productive investments (!). Bang with a 12-18 month delay to get things going we SHOULD see good things this year and next and at least one more in 2001. ---- RE: What's Wilf been saying?? Life is pretty good. Extended lead times - on some products upto 16 weeks. STBs strong. PlayStation strong. Networking outstanding (likely ATM + Gig. Ethernet). Big design wins continue for Fibre Channel. Computer segment not connected to PC market anymore - Workstations and Servers strong. New design wins in GSM. CDMA architecture set. DVD ramping up (finally) end of Q1. DCAM should be blockbuster and is shipping gen. 2. No Asia effect. Expects to beat semiconductor average rev. growth rate by 800-1000 basis points this year (!). Sees 3-5% sequential rev. growth in Q2. GM being hurt a bit though - my feeling is new product ramp has at least something to do with this, Lehman thinks pricing pressure for new products - likely some combination. Still healthy at 43-45%. R&D now at 20% ( ! - temporary effect - think sees steady next Q and then decline in %ge). He is also backing up the overall underlying strength with some of his dough - bought those 100k shares in Nov. at $23. ---- No reasons for me to complain. ---- Picture of Corrigan in April Upside - doing the "jedi". ---- Shane. (nevertheless stock still has lots of weak hands in it)