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

To: patrick tang who wrote (18393)	5/9/1999 11:01:00 PM
From: Jock Hutchinson	Respond to of 25814

To: patrick tang who wrote (18393)	5/10/1999 6:23:00 AM
From: Paul Lee	Read Replies (3) \| Respond to of 25814

WSJ's notes on the meeting <g> Dow Jones Newswires LSI Logic CEO Sees Small Acquisitions In Near Future Dow Jones Newswires MILPITAS, Calif. -- Custom chip maker LSI Logic Corp. (LSI) expects to make some small acquisitions in the near future related to acquiring new intellectual property, the company told Dow Jones. Chief Executive Wilf Corrigan said at the company's annual meeting and in an interview that he expects to make acquisitions smaller than its $767 million acquisition of Symbios Logic last year and its pending $100 million acquisition of Seeq Technology Inc. Corrigan said the company will acquire smaller companies to fill out its library of intellectual property that it uses its systems on a chip, or large chips that are pieced together in building-block fashion for specific customers. In addition, Corrigan reinforced predictions that the company would hit $2 billion in revenues in 1999, up from $1.49 billion in 1998, thanks in part to growth of its newly acquired Symbios storage business and fast growth in communications chips. He said gross margins could return to historical highs dating to 1995, before a three-year semiconductor slump hit. In the year 2000, Corrigan said he had high hopes for revenues related to chip sales to Sony, since LSI is supplying a communications chip to its upcoming Playstation 2. Corrigan said the company has considerable new capacity at a factory in Gresham, Ore., and is positioned to take advantage of the upturn in the semiconductor industry. "Based on the typical cycle, the next two to three years should be good for the industry and for LSI," Corrigan said. He said that demand was increasing across the board in most product lines and geographies and there appeared to be little inventory in the pipeline. "We're at the transition where they is a potential for a shortage of capacity," Corrigan said. - Dean Takahashi; (408) 406-3132