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LSI LOGIC ANNOUNCES RECORD NET INCOME ON HIGHER REVENUES IN THIRD QUARTER

 MILPITAS, Calif., Oct. 18 /PRNewswire/ -- LSI Logic Corp. (NYSE: LSI) reported third quarter revenues of $184 million, up 19 percent from $154 million in the third quarter a year ago. The company had record net income of $14.4 million or 29 cents a share in the third quarter, compared with a restructuring-related loss of $111 million or $2.51 a share in the third quarter a year ago.
 Revenues for the first nine months of 1993 were $530 million, up 16 percent from revenues of $456 million in the first nine months of 1992. Net income in the first nine months was $38 million or 78 cents a share compared with a loss of $117 million or $2.63 a share in the first nine months of 1992.
 "The financial turnaround has been achieved by increased revenues, higher factory utilization and lower operating expenses," said chairman and chief executive Wilfred J. Corrigan. "Revenues increased year-over- year in each of our major markets," he added, "and Japan showed signs of recovering from a two-year slump."
 The gross profit margin (39.1 percent) in the third quarter was the highest in five years; operating income as a percentage of revenues (12.4 percent) was a record; and net income as a percentage of revenues (7.8 percent) was the highest in eight years. Operating expenses as a percentage of revenues (26.7 percent) were at their lowest levels in eight years. The company's financial performance triggered profit- sharing bonuses to employees for the third consecutive quarter.
 The balance sheet showed improvement in the third quarter. Cash rose nearly $30 million to $202 million from the end of the second quarter of 1993, while long-term debt rose by $17 million. Inventories declined by $7 million to $63 million.
 In commenting on the company's product portfolio and market direction, Corrigan said, "We are focusing our products and advanced technologies on strategic, fast-growing vertical markets that now account for a growing percentage of new design wins. We are concentrating on providing key vertical markets with high-performance solutions, and limiting our exposure to commodity products."
 LSI Logic Corp. is a Fortune 500 supplier of high-performance semiconductors, with operations worldwide. The company manufactures and markets application-specific integrated circuits (ASICs), customer- specific integrated circuits (CSICs), and application specific standard products (ASSPs). LSI Logic's CoreWare(TM) methodology and leading-edge ASIC technology enables customers to build complete systems on a single chip. LSI Logic applies these advanced technologies to fast-growing vertical market segments, such as digital TV and networking. The company also develops and sells design software. LSI Logic is headquartered at 1551 McCarthy Blvd., Milpitas, CA, 95035, 408-433-8000.
 NOTE: Recorded text of the most current earnings release is available by dialing 408-433-7743. You may also have copies of this and other financial, organizational and product news releases faxed to you by phoning our toll free FaxLogic number 800-451-2742.
 LSI LOGIC CORP.
 Consolidated Statements of Operations
 (In thousands, except per share amounts)
 (Unaudited)
 Three Months Ended Nine Months Ended
 Sept 30, Sept 30, Sept 30, Sept 30,
 1993 1992 1993 1992
 Revenues $183,761 $153,962 $529,770 $456,319
 Costs and Expenses:
 Cost of revenues 112,001 104,651 324,167 306,221
 Research and development 19,134 18,766 57,539 60,160
 Selling, general and
 administrative 29,910 33,474 88,125 99,580
 Restructuring of oper-
 ations -- 101,785 -- 101,785
 Total costs and
 expenses 161,045 258,676 469,831 567,746
 Income (loss) from
 operations 22,716 (104,714) 59,939 (111,427)
 Interest expense (2,538) (3,234) (7,095) (9,310)
 Interest income and
 other 1,818 1,978 6,025 9,855
 Income (loss) before
 income taxes and minority
 interest 21,996 (105,970) 58,869 (110,882)
 Provision for income
 taxes 6,599 5,299 17,661 4,666
 Income (loss) before
 minority interest 15,397 (111,269) 41,208 (115,548)
 Minority interest in net
 income of subsidiaries 1,022 90 3,148 1,355
 Net income (loss) $14,375 ($111,359) $38,060 ($116,904)
 Earnings (loss) per
 share: $0.29 ($2.51) $0.78 ($2.63)
 Common and common equi-
 valents used in computing
 per share amounts 50,249 44,454 48,936 44,489
 LSI LOGIC CORP.
 Trended Condensed Balance Sheets
 (In millions, unaudited)
 Sept. 30, June 30, March 31,
 1993 1993 1993
 Current Assets:
 Cash and short-term
 investments $201.7 $172.3 $160.9
 Accounts receivable, net 135.3 117.7 124.4
 Inventories 62.5 69.9 67.9
 Prepaid expenses and other
 current assets 26.4 26.9 28.3
 Total current assets 425.9 386.8 381.5
 Property and equipment and
 other assets, net 460.8 434.9 410.2
 Total assets $886.7 $821.7 $791.7
 Liabilities and Stockholders' Equity
 Current liabilities:
 Accounts Payable $ 89.3 $ 90.9 $100.4
 Accrued salaries, wages and
 benefits 27.9 18.5 22.9
 Accrued restructuring costs 30.4 34.1 36.6
 Other accrued liabilities 25.4 22.5 24.3
 Income taxes payable 10.0 7.3 4.7
 Current portion of long-term
 debt, capital lease obligations
 and short-term borrowings 15.1 10.8 17.2
 Total current liabilities 198.1 184.1 206.1
 Long-term debt, capital lease
 obligations and other long-
 term liabilities 275.5 258.3 247.1
 Deferred income taxes 6.4 6.6 7.0
 Minority interest in
 subsidiaries 127.1 121.6 112.3
 Total liabilities 607.1 570.6 572.5
 Stockholders' equity:
 Common stock 269.5 260.8 252.2
 Accumulated deficit (57.3) (71.7) (94.9)
 Cumulative translation
 adjustment 67.4 62.0 51.8
 Total stockholders' equity 279.6 251.1 219.2
 Total liabilities and stock-
 holders' equity $886.7 $821.7 $791.7
 -0- 10/18/93
 /CONTACT: Bruce Entin of LSI Logic, 408-433-4067/
 (LSI)


CO: LSI Logic Corp. ST: California IN: CPR SU: ERN

CB-TM -- SJ004 -- 3668 10/18/93 20:13 EDT
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Date:Oct 18, 1993
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