$700m includes both the internal and external storage units at LSI. Both were in the same division. LSI only sold off the external storage unit. They kept the more profitable internal storage unit. Internal storage includes RAID PCI cards that go directly into PC's, Servers, etc... External storage was large RAID systems with external control boards
The question is what opportunity does LSI have to grow? The answer sadly appears to be not much. The management is at best average. The vision they have had over the last decade is to try not to lose more money. As one might expect under the circumstances, LSI does not have much cash relative to other semiconductor companies.
its about the profits and profit margins. Probably LSI is making a loss in this $700m and is affecting its bottom line.
"As a result of the sale, LSI expects to eliminate $35 million to $40 million per quarter of operating expenses upon closing of the transaction."
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