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Technology Stocks : Adaptec (ADPT) -- Ignore unavailable to you. Want to Upgrade?

To: The Philosopher who wrote (3853)	10/15/1998 3:44:00 PM
From: Jim Switz	Read Replies (1) \| Respond to of 5944

Some LSI/Symbios information, from LSI's website: lsilogic.com Some of us (well me, anyway) have wondered how LSI would handle digesting Symbios, having won it away from ADPT when the latter caved at the end of June. This press release indicates that revenues for the Symbios portion of the company were about $89M over a period of about 8 weeks during the quarter. Extrapolating to a 13-week quarter (yes, it's crude) yields about $144M/quarter or $576M/year. We heard about Symbios gross revenues being about $620M/year during Adaptec's run at it (a South Korean newspaper article, as I recall), so the current run rate is roughly flat with Symbios performance earlier in the year. I'm assuming current conditions are seasonally slower during the summer period, so extrapolating the current quarter probably yields a too-low annual number. Looks to me like Symbios revenues are about what they were earlier in the year, which is pretty good compared to a lot of tech companies these days. We know nothing about Symbios inventories (although overall LSI inventories are way up . . . hmmm), order backlog or new-product acceptance, however, so things may be different than they appear. Also, LSI is taking a $326M one-time charge for the Symbios deal, in addition to many other restructuring efforts outlined in the press release. Their cash is down quite a bit, and debt is up a lot, no doubt from the Symbios deal. So far, looks to me like things are on track for LSI's acquisition, but it's a lot to swallow so I hope we can find ways to keep an eye on how things go. They probably have yet to face all the consequences of employee integration and morale. No big revelations here, I guess, but FYI. My goodness, we just hit $11.00! What planet is this?