Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Wolf 2 who wrote (12346)	5/13/1998 12:21:00 PM
From: Tony D.	Read Replies (3) \| Respond to of 25814

I attended with a friend but was unable to post until now. Michael did a very credible job of recanting the meeting. My overall impression was that Corrigan was sincere and believed that LSI could and would prosper as early as later this year. He certainly held high hopes for next year. He was asked why their revenues (earnings) were down with the fab's nearign capacity as compared to last year with the fab's at 75%. He responded that the work currently in the fab's was booked last year at lower rates (margins) just to keep them operating. He agreed that one does not normally want to book low margin business but they took what they had to. He feels that this "keep busy" work would soon make it through the cycle leaving room for higher margin work. When asked about the next generation Sony playstation and if LSI would participate with Sony, he responded that since Sony had not announced anything, he could not as well. However, with a BIG smile, he did say that IF Sony came out with the next generation playstation, he felt that LSI would play a large role in it. IMHO, I construe that to mean that Sony will be comming out with the new model and LSI will prosper from it. Since I am a design engineer by trade, I inquired with a number of LSU people (Director of HR, Director of Engineering, and Corrigan's personal secretary) if there were open positions. ALL responded that there were - LSI appears to be growing resource wise, no mention of any downsizing. Corrigan also mentioned that he recently spoke with an economist associated with TI, and he was informed that semiconductors usually have down cycles of two years with the longest one noted at 2.5 years. Corrigan thinks that we are approaching the end of a 2.5 year downturn. Also mentioned for 1999, industry was forecast with a growth of 15%. Noted that industry either grows under 10% (this year) or WELL over 20% (his view of next year). The range of 10% - 20% was "no man's land" and usually never experienced. Overall, I walked away feeling positive. I am not looking for any miracles (and neither is LSI) this year, but 1999 thru 2001 look very good to them. Again my apologies for the late post - hope I was able to fill in some of the details to Michael's post (which I thought to be accurate and detailed). Thanks, Tony D.