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

To: GST who wrote (18133)	4/20/1999 7:07:00 AM
From: Paul Lee	Read Replies (3) \| Respond to of 25814

Beat the Street and record revenues LSI Logic Reports Record First Quarter Revenues - First Quarter 1999 Highlights - The LSI Logic 1999 First Quarter News Release Follows This Summary: * Record Q1 revenues of $457 million. * Q1 revenues up 41 percent compared to Q1 1998. * Fourth consecutive quarter of sequential revenue growth. * Per share EBG(1) was 8 cents, compared to First Call consensus estimate of 5 cents. * Operating expenses decline in dollars and as percent of revenues. (1) Earnings before goodwill amortization and special items. Special items were restructuring reserve reversals, and the change in accounting principle. MILPITAS, Calif., April 20 /PRNewswire/ -- LSI Logic Corporation (NYSE: LSI) today reported 1999 first quarter revenues of $457 million, a 41 percent increase over the $325 million posted in the first quarter of 1998. Net income before amortization of goodwill, the reversal of restructuring reserves, and a change in accounting principle was $11 million or 8 cents a diluted share. The result represents a decrease of approximately 64 percent as compared to net income before amortization of goodwill and other intangibles of $31 million or 22 cents a diluted share in the first quarter of 1998. Net income before the change in accounting principle was $5 million or 3 cents a diluted share. As previously announced, LSI Logic expensed the unamortized preproduction balance of $92 million, net of tax on January 1, 1999 and presented it as a cumulative effect of a change in accounting principle. The change in accounting principle reduced net income per diluted share by 63 cents resulting in a net loss of $87 million or 60 cents a diluted share. "LSI Logic had record bookings in the first quarter," said Wilfred J. Corrigan, LSI Logic chairman and chief executive officer. "We achieved sequential revenue growth, lowered operating costs and our backlog continued to build. We clearly have momentum as we head into the second quarter and beyond." LSI Logic Market Overview The rapid worldwide acceptance of the Internet was a major driver for LSI Logic in all six of the company's targeted vertical markets. "LSI Logic is participating in the growth of the Internet infrastructure on an across the board basis," said John Daane, LSI Logic executive vice president for Communications, Computer and ASIC Products. "We are providing system-on-a-chip designs for switches and routers in the networking space; high-performance, high-density SCSI and Fibre Channel chips in storage components; CDMA and GSM single-chip systems in wireless; SONET and xDSL semiconductors in telecommunications; ASIC solutions for servers in computer; RAID system products in storage systems; and digital cameras and digital television in the consumer electronics market." "Consumer products growth, including video games, DVD, digital camera and digital television, looks strong for 1999, with sequential quarterly growth building through the rest of the year," said Elie Antoun, LSI Logic executive vice president of Consumer Products. First Quarter 1999 Business and Technology Highlights * LSI Logic's stock was the top performing Standard and Poors 500 common stock during the first quarter, and fourth best performing NYSE common stock in the first quarter. * Sony Computer Entertainment Inc. (SCEI) selected LSI Logic as the system-on-a-chip supplier of the key I/O processor for its second-generation Sony PlayStation video game console. * LSI Logic and SEEQ Technology, Inc. (Nasdaq: SEEQ) announced an agreement for LSI Logic to acquire SEEQ in a stock transaction valued when announced at approximately $100 million. The acquisition, which is expected to be accretive, is anticipated to be completed in the second quarter. * LSI Logic completed a $345 million offering of 4.25 percent convertible subordinated notes to institutional investors. The net proceeds were used to repay bank debt and strengthen the LSI Logic balance sheet. * LSI Logic added the Symbios(R) SYM53C140 Ultra2 SCSI Bus Expander to its SCSI Bus Expander family, combining the features of two LSI Logic expanders and support for Ultra2 SCSI into a single product. * LSI Logic shipped CoreWare(R) models for the Direct Rambus(TM) ASIC Cell (D-RAC), utilizing the company's G11(TM) process technology (0.18-micron, effective) to customers. * Silicon Graphics selected LSI Logic to provide system-on-a-chip ASICs for Silicon Graphicsa 320 and 540 visual workstations. The design wins demonstrates LSI Logic's ability to provide high performance ASICs into the high-growth NT Workstation market.