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

To: Jock Hutchinson who wrote (18268)	4/23/1999 7:25:00 PM
From: sea_biscuit	Read Replies (2) \| Respond to of 25814

I don't know what kind of data-mining that guy is doing. And I just don't have the time to probe any deeper. What I do know is that analysts can turn gullible people into lemmings.

To: Jock Hutchinson who wrote (18268)	4/23/1999 8:10:00 PM
From: Alain Dubreuil	Read Replies (1) \| Respond to of 25814

Dear Mr Hutchison, comments from Value Line LSI Logic's top line should pick up momentum through 1999. Conditions appear to be improving within the chip industry. Revenues have accelerated for two consecutive quarters. Turns (bookings for delivery within the same quarter) as a percentage of revenues are at a high, indicating that LSI's customers had underestimated the rise in demand and are now trying to meet increased orders from their own customers. Next-quarter bookings, too, have risen, which suggests an improving trend. These developments, combined with an improving pricing picture, should continue to help lift LSI's top and bottom lines at double-digit rates. Lower expenses should also improve profitability. By mid-year, LSI will have likely eliminated about 1200 jobs-a 17% reduction from last autumn-and closed two of its older manufacturing facilities (the fab in Japan may stay partially on-line to meet some lingering demand for older products). The Gresham, Oregon, plant, a more efficient operation that is in the process of starting up, will take on the additional load. Also, the company is closing several design centers and sales offices, and is eliminating some 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. Looking longer term, LSI is positioned to benefit from high-growth areas, such as telecommunications ... The networking and communications segments have substantial long-term growth potential, especially for ATM, Ethernet, frame relay, remote access, and wireless applications. ... computer markets ... Demand for workstation, storage-device (Symbios), and server products should grow significantly, primarily due to rapid Internet expansion. ... and consumer goods. Its ongoing association with Sony has been very profitable, and its success suggests LSI will forge additional relationships with other consumer businesses. Although some risk still exists, LSI stock has decent recovery potential through 2002 to 2004. Warren Thorpe April 23, 1999 Alain Dubreuil