AVGO - Avago Technologies Ltd - Avago Technologies to Acquire LSI Corp. Transcript

    Company Name:Avago Technologies Ltd
    Event Title:Avago Technologies to Acquire LSI Corp. Transcript
    Event Date:16-Dec-2013
    Event Time:08:30 AM ET



    Welcome to Avago Conference Call to discuss it's acquisition of LSI. At this time I would like to turn the call over Mr. Thom Krause, Vice President of Corporate Development, for opening remarks and introduction. Please go ahead sir.

    Thomas Krause

    Vice President, Corporate Development
    Thank you, operator, and good morning, everyone. Welcome to Avago's conference call to discuss their proposed acquisition of LSI.

    Joining me today are Hock Tan, Avago's President and CEO, of LSI and Tony Maslowski, Chief Financial Officer of Avago Technologies. All have prepared comments. The limit of today's call 45 minutes.

    After prepared comments, we will open the lines for your questions. The press release in the presentation slide summarizing the transaction are available in the investor section of website at avagotech.com.

    This conference call is being webcast live and a recording will be available via telephone playback. It will also be archived in the investors section of our website at avagotech.com.

    As a reminder today's call will include forward-looking statements regarding the expected timing and completion of the transaction as well as financial impact to Avago. These statements include risks and uncertainties that could cause our actual results to differ materially from statements made on this call. Please refer to our press release today and our recent filings with the SEC for more information on specific risk factors.

    Now I will turn the call over to Hock.

    Hock E. Tan

    President, Chief Executive Officer and Director
    Thank you Tom. Good morning everyone. Let me first state that we are very excited by this strategic opportunity that strategic opportunities this acquisition was great for Avago as well as the compelling financial benefits of what I consider to be transformational transaction for Avago.

    I would like to in my remarks refer you to various slides in our presentation let me began with the first. Which summarizes the strategic rational for this deals. First the position open and here has not been a major player that is until now and to price for in this space airlines bring the leadership in connectivity and hard disk drive, the transaction also significantly expands the offering and capabilities in the wide infrastructure market but they clearly by bringing system level expertise including architectures and software engineering These very much complement a high performance and component capabilities and now allows us to develop more robust roadmaps for mutual data center, networking and storage customers. Now bringing these two companies together, significantly increases our scale.

    Importantly, it also diversifies our revenue across now several launch addressable brining down a Avago's current concentration in wireless . The transaction and Tony will get into much more will be immediately accretive to free cash flow and earnings per share on a non-GAAP basis.

    Importantly, intend in the long-term to drive operating profitability the of LSI towards the level consistent which one Avago delivers today.

    Turning to the next slide, for those of you who might not be familiar with LSI this company is a $2.4 billion revenue Fabless semiconductor business. The company is the leader in enterprise storage and wide infrastructure markets in enterprise storage we have the available market of over $5 billion. connectivity hard disk drive and flash businesses make us a leader overnight. processors and custom silicon solutions are sold to leading enterprises service providers OEMs.

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