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

To: Moonray who wrote (18520)	5/20/1999 2:15:00 PM
From: sea_biscuit	Respond to of 25814

Didn't some analysts have 40 as their "12-month target" price about 2 or 3 months ago? When stocks start hitting their "12-month target" prices within a couple of months or so, that in itself is a very good reason to sell them, or at the very least take some money off the table...

To: Moonray who wrote (18520)	5/20/1999 2:24:00 PM
From: sea_biscuit	Respond to of 25814

Well, it didn't take long to find it! Less than 3 months ago, analysts setting "12-month target" prices of 40. And we are there right now... techstocks.com

To: Moonray who wrote (18520)	5/20/1999 5:16:00 PM
From: Jock Hutchinson	Read Replies (5) \| Respond to of 25814

Just spoke with LSI IR. Best news is that they are very comfortable with the projected 5 to 6 percent revenue growth in the upcoming quarter. The problem right now is getting Gresham up to an accelerated pace. Currently, Gresham is doing about 1000 wafers a week, and LSI would like to see 2000 wafers a week by the end of the year. Total capacity of the current fab is about 5000 wafers a week, and of course there is room for a couple other fabs. Yesterday's announcement with the fab in Malaysia is the sort of partnering that LSI expects to see quite a bit more of in the future. LSI sees this as a way to reduce its R&D. For the year 1998, LSI was #1 was both ASIC and Cell Based chip sales. By the end of this year, LSI's goal is to have about 50 percent of its sales in Coreware (ASSPs), which of course is their high-end value-added intellectual property. LSI had a meeting with analysts yesterday, and there were about 12 to 14 in attendance. Mark Edlestone, the current guru of the semi market was looking to raise his '00 numbers to $2.50, but LSI wants to keep this sort of optimism in check. He's raising the numbers anyway. To Andy M: LSI has had about 6 design wins in the DVD market. So far only a couple or three (two Sony and an Asian company named Phakral are out the door). There are also some Chinese products that are about to hit the street on DVD. The interesting thing about these DVD chips is that there is no value-added in terms of R&D by the manufacturer. Rather, it's all LSI's effort. The goal is margins of 45% by mid 2000 with accompanying goals for SGA of 12% and R&D of 13%. This puts gross net at 20% before taxes, which puts bottom line at 14% after taxes. As chip requirements become more complex, there is less competition among different chip vendors and a desire by the purchasers to spread the business around to keep everyone happy. Current competitors include Thompson, Lucent, Texas Instruments, IBM, and to some extent NEC. LSI sees itself as distancing itself from FPGA with its ASIC and Coreware products simply due to the size requirements