Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jock Hutchinson who wrote (15794)	10/21/1998 3:51:00 PM
From: Tony Viola	Respond to of 25814

Jock, about 0.25 micron technology and your comment on it >>>This illustrates just how long it takes for the technology to be developed; the design wins to happen; the initial production to occur; and finally the profits to roll in.<<< The length of time it takes depends entirely on the company that is executing the change to the new technology. Two reasons come to mind. The first I would describe as "opportunity or business case", i.e., the company really has a lot to gain by moving to the new technology, and the money to justify it. The second is, obviously, the technical prowess to do it. Those are probably backwards. LSI probably failed on the first. I can name for you two companies, your turn to guess, real tough, that brought on 0.25 flawlessly (as far as we hear, anyway), quickly and profitably. Now, they are ready for 0.18 real soon (one this quarter, and the other next). Tony

To: Jock Hutchinson who wrote (15794)	10/21/1998 4:16:00 PM
From: patrick tang	Read Replies (1) \| Respond to of 25814

Regarding 0.25um - (EDA folks please help out here) yes it is long lead time to get designed in etc., but my suspecion is going from 0.35um to 0.25um was not easy from EDA standpoint. Need to update a lot of the tools. If that is the case, going from 0.25um to 0.18um might be a lot easier - just like going from 0.5um to 0.35um was relatively easy before. Also, to me going to 0.25um really represents the very first generation of SOC - one just get to try out the toys so to speak, who the end customers might be, what to build, how to integrate, how to design and test etc. etc. Once those lessons are learned, going down from here to 0.18um should be a lot easier. At 0.12um, probably another hurdle in process technology, but hopefully the EDA tools and design lessons learned can be re-applied. By the way, to suggest in 1995 that 0.25um was going to bring in money soon had got to be pre-mature. Even the leaders like Intel and IBM was nowhere near 0.25um then. I don't think one can even buy a lot of the process equipment then. For LSI, I see them starting to generate revenue at 0.18 before mid-2000. End of 2000 latest. patrick

To: Jock Hutchinson who wrote (15794)	10/24/1998 12:38:00 AM
From: patrick tang	Read Replies (1) \| Respond to of 25814

The world economy, especially Asia, is going to just turn on a dime: mercurycenter.com Fasten your seat belts, here we go. patrick

To: Jock Hutchinson who wrote (15794)	10/25/1998 10:40:00 AM
From: Alain Dubreuil	Read Replies (1) \| Respond to of 25814

Comments from Value Line LSI Logic's earnings will likely continue to slow in the near term. Excluding the Symbios acquisition, sales declined about 8% in September quarter. And since orders slowed substantially in August, we expect a worse comparison for the December period. A modest acceleration of bookings in the past six weeks, though, suggests that 1999 could see an improving sales picture. New orders for the telecoms and PC markets appear to be relatively good, especially, and the disk drive market, which has had a very poor year, also is showing signs of greater strength. Based on current trends, we think orders will continue to improve going forward. Cost cutting initiatives should help the bottom line next year. Over the course of the next 12 months, LSI plans to eliminate about 1200 jobs-a 17% reduction-and close two of its older manufacturing facilities. The Gresham plant, a more efficient operation that is being brought on line this quarter, will take on the additional load. Also, the company will close down several design centers, sales offices, and administrative functions, mostly because of redundancy related to the Symbios acquisition. These steps should bring LSI closer to its targeted business model by the second half of 1999, and, together with the fully operational Gresham plant, help support better earnings growth through next year. Over the long term, LSI should benefit from high-growth areas, such as telecommunications ... This segment has substantial long-term potential for expansion, especially for ATM, Ethernet, frame relay, remote access and wireless applications. ... computer markets ... Demand for workstation, storage-device, and server products should grow significantly, primarily due to the rapid expansion of the Internet. ... and consumer goods. Its profitable association with Sony suggests LSI will forge relationships with other consumer businesses. Although significant risk exists, LSI stock has substantial recovery potential through 2001A2003. Near-term uncertainty remains, however. We expect the stock (ranked 4 for Timeliness) will underperform the market averages in the next six to 12 months. Warren Thorpe October 23, 1998