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

To: patrick tang who wrote (13653)	7/17/1998 4:55:00 PM
From: Hightechhooper	Read Replies (2) \| Respond to of 25814

Patrick, No doubt fibre channel will contribute to LSI's revenues in a meaningful way. But to the extent qlogic got dell and that other company got ibm, it is likely a big stretch to think that lsi has 80% of the market. Those are 2 big players going to someone else right off the bat. The thing to be concerned about is the way that fibre channel takes share from scuzzy. SEG mentioned this in their call, scuzzy down and fibre up. That means that the symbios revenue base could be shrinking so the contributions of fibre channel will be offset by losses in scuzzy. I think that is part of the reason so many of the analysts don't like the deal. However, if LSI could explain clearly that the deal makes sense strategically we could see a positive reaction after the call. The story could go something like this...we are focussed on the internet as our primary customer and the internet includes datacomm, telecom, consumer digital as well as high end computing and storage (you need a lot of servers in this brave new world). Therefore, in order to fully take advantage of the opportunities the internet provides we wanted a presence in all segments that will show significant growth going forward. The symbios acquisition gives us a strong presence in each of these large opportunity areas. If they just get it in their heads that they have to sell the story I think they can do it. If they just give the facts and wait for the results to speak for themselves, we're dead in the water. Sorry that this doesn't help your heart, but I still believe that the results we have been waiting for have been pushed out another 3-6 months so we will be completely dependant on LSI to build a good story in order to maintain interest. They have all the pieces to build it, I just don't know if they have the desire.