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

To: akmike who wrote (15729)	10/16/1998 11:14:00 PM
From: Jack Whitley	Read Replies (1) \| Respond to of 25814

<<I don't understand how your thesis of y2K hogging corporate IT budgets specifically becomes so much doom and gloom for LSI. I could easily be off on my assessment but looking at LSI's 6 new operating divisions this is how that stacks up to me: consumer-neutral; networking-positive;storage components-positive;telecommunications-neutral;computer applications-negative;storage systems-neutral. net-net=neutral. Surely not a disaster?>> Not to over-simplify, but I think you have to look at "discretionary" IT spending vs. what it will take to keep the doors open when evaluating Y2K impact on new IT sales. I think many are going to wait until after Jan 1st 2000 on all "discretionary" projects. I'll use myself as an example. In my business, we have been evaluating some industrial strength digital recording equipment for a large call center. A very large purchase. Even though we are "guaranteed" compliant equipment, the bulk of the chips in the boxes were purchased from other vendors (do any of the hundreds of chips have two digit code in ROM ?) and an industry standard OS that no one will come out and say is absolutely compliant, not even the company that made it. Why would anyone do any non-essential purchases in this environment. If it doesn't work, you'll have to take a number to sue. Just wait until Jan 3, go to their factory and plug one in, see if it works, then buy it. In my opinion, "discretionary" IT spending isn't going to slow down before 2000, it is going to stop. Spending on upgrading critical systems could reach panic levels though. Does LSI lose or gain in this environment ? jww