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

To: Jock Hutchinson who wrote (13915)	7/27/1998 5:18:00 PM
From: Hightechhooper	Respond to of 25814

One more thing, Don't make the mistake of over estimating the growth in the datacom sector. Remember that LSI took on a lot of low margin datacom business that just began shipping in quantity this qtr (now that I know about the sony price decrease it is clear why they took on this business). Therefore, the large growth in datacom in Q2 will not be repeated moving forward. yes, datacom is growing at a healthy rate but that growth rate was overstated by the introduction of these low margin parts this qtr. Also, I believe these low margin businesses are mostly mature products so they will not represent much growth going forward.