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LSI Logic Misses Quarterly Revenue Target Because of Glitch

By Leonard Lee July 31, 2000

What a difference a day makes. LSI Logic, a California semiconductor manufacturer reported on Tuesday that revenues for the second quarter were about $20 million less than had been expected.

Investors punished the stock by dropping its price more than thirty percent the next day. Company officials said about half of the revenue shortfall was accounted for by a glitch in a new supply chain management computer system.

The glitch caused shipment of $10 million worth of goods to be delayed by one day. Instead of shipping on June 30, the last day of the second quarter, it shipped out on July 1, the first day of the third quarter.

Company officials stressed that there was no loss of business or revenue -- the shipment and its revenue were simply moved from one quarter into the next. The company remains on target to reach its revenue goals for the entire year. Nonetheless, company officials were a bit chagrined over the delay. "We've taken corrective actions, and the problem will not recur," said company spokesman Kevin Britt.

Reported by Newsbytes News Network, http://www.newsbytes.com

-- (Dee360Degree@aol.com), July 31, 2000