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

To: akmike who wrote (15751)	10/18/1998 6:59:00 PM
From: shane forbes	Read Replies (2) \| Respond to of 25814

Mike: He was speaking about the current Quarter's percentages when he said between 10% and 20% for each product line. Last quarter the splits were 40% (networking+wireless), ~30% computer & ~30% consumer. Seriously doubt a 7m yen based loss per q because, based on what I know about Mr. LSI, it is just way too big - does not feel right. Further, since they mentioned a 4m yen loss last q, LSI would have definitely mentioned a 7m loss during this c.call. The 10m STB loss for Echostar is based on a STB run rate of 40m from Lehman for STMicro but I have to admit LSI may still be making a few chips for them right now. DVD and DCAM were just not stronger than they thought. The initial forecasts were for something like $90m+ (likely 100m-110m+) this year for those 2. Even if say this is 80m now I'm pretty sure they had a 10m+ QtoQ gain - DCAM especially should have seen a monster gain QtoQ of at least 6-7m (easily). That's why I used a conservative 10m+ gain QtoQ. In summary I think it is: (a) Little Sony Playstation (since I think this was flat Q to Q - price decreases vs. XMas Inventory Build) + LSI said sales were strong. (b) Echostar losses (c) other STB losses (d) other smaller product losses (e) something else that bothers me (f) Yen based loss of around 5m It is (c) and (d) and (e) that bothers me more. This would be mitigated if indeed there is a PlayStation inventory adjustment for PS2 intro and DVD and DCAM may have had a light summer inventory adjustment (but I just don't think so - unless they are losing share here too but I don't think this is happening). Still STBs must be something in the neighbourhood of a growing $100-130 million business for LSI and thus this is not a thing to be losing $50-60+ million a year right now. Shane.