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

To: patrick tang who wrote (15198)	9/22/1998 2:09:00 PM
From: shane forbes	Read Replies (3) \| Respond to of 25814

Patrick: Again I have to agree with you absolutely. In many of the fabless companies' 10-Qs I see the argument time and time again about product development costs to get qualified at foundries; also the time/costs involved in moving to new fab processes or design shrinks. Yes I agree that Gresham is a must - I'm amazed that the analysts are "concerned" with the higher depreciation costs and the impact on earnings in the next few quarters. To me this is totally bogus! I could care less what LSI's earnings are for the next few quarters! There will come a point when the demand recovers and he who then has the working sub-micron fabs is golden. Any "lower" earnings in the next few quarters because of depreciation/startup etc will be more than made up over time. That's why my concentration is on revenue growth. A concentration on earnings (Mr. Market's fixation) is missing the whole boat! (Of course revenues beget earnings and so higher revenues will mean higher earnings and vice versa BUT the emphasis should be on the revenue numbers at this stage since LSI is in early ramp-up mode.) About LSI taking over QLOGIC I don't think it will happen. Also people like QLOGIC are doing the standard products as opposed to LSI's CSIC (customer specific IC) thing and so they could stand on their own IF they continue to design the right chips - but take the wrong step and the small guys will be toasted! Shane.