Tuesday, December 23, 2008 8:53:15 AM
Forecast: We project that revenues will advance 1.6% in 2008, reflecting our outlook for solid sales growth from the storage semiconductor and systems business, supported by new product cycles. In addition, we see market share gains in hard disk drive (HDD) semiconductor products due to the completed acquisition of Infineon Technologies' HDD business and new design wins. For 2009, we forecast revenues will decline 17.1%, on our view of a weak IT spending environment amid the difficult economy. We expect non-GAAP gross margins of 46.8% in 2008 and 46.6% in 2009, wider than the 45.9% in 2007, reflecting our expectation of better cost absorption from higher sales and improved product mix. LSI has been making progress in integrating Agere Systems, in our opinion, and we think that synergies will reduce expenses in 2008. However, we forecast expenses will de-leverage in 2009 on lower sales that we anticipate. As a result, we project the operating margin will improve to 8.1% in 2008, versus 7.5% in 2007, but then decline to 5.7% in 2009. Our operating EPS estimates are $0.31 for 2008 and $0.17 for 2009, excluding one-time acquisition-related charges, compared to $0.18 in 2007.
Ray
Recent SMH News
- VanEck Launches SMHX: Targeted Exposure To Fabless Semiconductor Designers • Business Wire • 08/28/2024 12:45:00 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM