LSI Logic Corp. reported a surprise $35.7 million third-quarter net loss, including a special restructuring charge that reflects a continuing industry-wide slowdown in semiconductor demand. In September, the custom-chip maker said excess capacity and lagging billings would result in an estimated $2 million to $3 million net loss for the third quarter. But company officials said yesterday that they decided to take a $43 million pretax charge for the period to cover a restructuring of world-wide manufacturing operations, citing extended weakness in the market as well as a decision to switch to more economical production techniques. `` Over the summer months, there has been a slowing in the rate of new orders from the computer sector, our primary market, '' said Wilfred J. Corrigan, chairman and chief executive officer. `` In addition, recent industry forecasts for 1990 indicate a slow environment, at least until midyear. '' As a result, the company said it decided to phase out its oldest capacity and `` make appropriate reductions '' in operating expenses. The $35.7 million net loss equals 86 cents a share. Not counting the extraordinary charge, the company said it would have had a net loss of $3.1 million, or seven cents a share. A year earlier, it had profit of $7.5 million, or 18 cents a share. Revenue rose 42 % to $133.7 million from $94 million. The charge partly reflects a switch from older five-inch to more-efficient six-inch silicon wafers with which to fabricate chips. Related to that decision, the company said it was converting its Santa Clara, Calif., factory to a research and development facility. A spokesman declined to speculate about possible reductions in force. `` This is a company that has invested in capacity additions more aggressively than any other company in the industry and now the industry is growing more slowly and they are suddenly poorly positioned, '' said Michael Stark, chip analyst at Robertson, Stephens & Co. `` I think the stock is dead money for a while. '' Yesterday's announcement was made after markets closed. U.S. chip makers are facing continued slack demand following a traditionally slow summer. Part of the problem is that chip buyers are keeping inventories low because of jitters about the course of the U.S. economy. TEXT LSI Logic Corp. reported a surprise $ 35.7 million third-quarter net loss , including a special restructuring charge that reflects a continuing industry-wide slowdown in semiconductor demand . In September , the custom-chip maker said excess capacity and lagging billings would result in an estimated $ 2 million to $ 3 million net loss for the third quarter . But company officials said yesterday that they decided to take a $ 43 million pretax charge for the period to cover a restructuring of world-wide manufacturing operations , citing extended weakness in the market as well as a decision to switch to more economical production techniques . `` Over the summer months , there has been a slowing in the rate of new orders from the computer sector , our primary market , '' said Wilfred J. Corrigan , chairman and chief executive officer . `` In addition , recent industry forecasts for 1990 indicate a slow environment , at least until midyear . '' As a result , the company said it decided to phase out its oldest capacity and `` make appropriate reductions '' in operating expenses . The $ 35.7 million net loss equals 86 cents a share . Not counting the extraordinary charge , the company said it would have had a net loss of $ 3.1 million , or seven cents a share . A year earlier , it had profit of $ 7.5 million , or 18 cents a share . Revenue rose 42 % to $ 133.7 million from $ 94 million . The charge partly reflects a switch from older five-inch to more-efficient six-inch silicon wafers with which to fabricate chips . Related to that decision , the company said it was converting its Santa Clara , Calif. , factory to a research and development facility . A spokesman declined to speculate about possible reductions in force . `` This is a company that has invested in capacity additions more aggressively than any other company in the industry and now the industry is growing more slowly and they are suddenly poorly positioned , '' said Michael Stark , chip analyst at Robertson , Stephens & Co . `` I think the stock is dead money for a while . '' Yesterday 's announcement was made after markets closed . U.S. chip makers are facing continued slack demand following a traditionally slow summer . Part of the problem is that chip buyers are keeping inventories low because of jitters about the course of the U.S. economy . 2~4~6 10~12~14~16~18~20~22~24 20 30~32~34~36 42~44~46~48~50~52~54 52~54 61 65~67~69 73~75 79~81 89~91~93~95~97~99~101~103~105~107~109 113~115~117 124~126 130 134 142~144~146~148~150~152 156~158 164~166~168~170~172~174 180~182~184~186~188 196~198~200~202~204~206~208~210~212 221~223~225 235~237~239~241~243~245~247~249~251~253~255~257 253~255~257~259~261~263~265 261 273~275~277~279~281~283~285~287~289 298 302~304~306~308~310 310 314~316~318 322~324~326~328 337~339 343~345 349 359 359~361~363 371~373 379~381 386~388~390~392~394~396 400~402~404~406 415~417~419 423~425 429 437~439~441~443~445~447~449 455~457~459~461 466~468~470 474 478~480~482~484~486 492~494~496~498 503 507~509 513~515~517~519~521~523~525 530~532 538~540~542~544~546~548~550~552~554~556 566 575~577 581~583 587 593 593~595~597~599~601~603~605 595~597~599~601 609~611~613~615~617 622~624 634~636~638~640 647 651~653 663~665 673~675~677~679~681~683 681~683 689~691 703 719~721~723~725~727~729~731~733~735~737~739 731~733~735~737~739 746 750~752 756~758~760~762~764 771 771~773~775 783 790 790~792~794 800~802~804 808~810~812~814 819~821~823~825 831~833 839 847~849~851~853~855~857~859~861 857~859~861 859 LSI Logic Corp.|1466,1473,1489,1497,1498,1499,1506,1507,1511,1521,1522,1523,1529,1530,1535 a surprise $35.7 million third-quarter net loss|1467,1503 the third quarter|1468,1477,1482 a special restructuring charge|1469,1505,1517 a continuing industry-wide slowdown in semiconductor demand|1470 semiconductor demand|1471 September|1472 excess capacity|1474 lagging billings|1475 an estimated $2 million to $3 million net loss|1476 company officials|1478,1480 yesterday|1479,1541 a $43 million pretax charge|1481 a restructuring of world-wide manufacturing operations|1483 extended weakness in the market|1484 a decision to switch to more economical production techniques|1485 the summer months|1486 a slowing in the rate of new orders from the computer sector|1487 the computer sector|1488 Wilfred J. Corrigan|1490 addition|1491 recent industry forecasts for 1990|1492 1990|1493 a slow environment|1494 at least until midyear|1495 a result|1496 its oldest capacity|1500 appropriate reductions|1501 operating expenses|1502 86 cents a share|1504 a net loss of $3.1 million|1508 seven cents a share|1509 A year earlier|1510 profit of $7.5 million|1512 18 cents a share|1513 Revenue|1514 42 %|1515 $133.7 million from $94 million|1516 a switch from older five-inch to more-efficient six-inch silicon wafers|1518,1520 chips|1519 its Santa Clara, Calif., factory|1524 Santa Clara, Calif.|1525 a research and development facility|1526 A spokesman|1527 possible reductions in force|1528 capacity additions|1531 any other company in the industry|1532 the industry|1533,1534 Michael Stark|1536,1538 Robertson, Stephens & Co|1537 the stock|1539 dead money for a while|1540 Yesterday's announcement|1542 markets|1543 U.S. chip makers|1545 U.S.|1544,1553 continued slack demand|1546 a traditionally slow summer|1547 Part of the problem|1548 chip buyers|1549 inventories|1550 jitters about the course of the U.S. economy|1551 the U.S. economy|1552 1466|NUC:DIST:2~4~6 1467|MOD:DIST:10|MOD:DESC:12|MOD:DIST:14~16~18|MOD:DIST:20|MOD:DIST:22|NUC:DIST:24 1468|NUC:DIST:20 1469|MOD:DIST:30|MOD:DESC:32|MOD:DIST:34|NUC:DIST:36 1470|MOD:DIST:42|MOD:DIST:44|MOD:DESC:46|NUC:DIST:48|MOD:DIST:50~52~54 1471|MOD:DIST:52|NUC:DIST:54 1472|NUC:DIST:61 1473|MOD:DIST:65|MOD:DIST:67|NUC:DESC:69 1474|MOD:DIST:73|NUC:DIST:75 1475|MOD:DIST:79|NUC:DIST:81 1476|MOD:DIST:89|MOD:DESC:91|MOD:DIST:93~95~97~99~101~103~105|MOD:DIST:107|NUC:DIST:109 1477|MOD:DIST:113|MOD:DIST:115|NUC:DIST:117 1478|MOD:DIST:124|NUC:DIST:126 1479|NUC:DIST:130 1480|NUC:DIST:134 1481|MOD:DIST:142|MOD:DIST:144~146~148|MOD:DIST:150|NUC:DIST:152 1482|MOD:DIST:156|NUC:DIST:158 1483|MOD:DIST:164|NUC:DIST:166|MOD:DIST:168~170~172~174 1484|MOD:DESC:180|NUC:DIST:182|MOD:DIST:184~186~188 1485|MOD:DIST:196|NUC:DIST:198|MOD:DIST:200~202~204~206~208~210~212 1486|MOD:DIST:221|MOD:DIST:223|NUC:DIST:225 1487|MOD:DIST:235|NUC:DIST:237|MOD:DIST:239~241~243~245~247~249~251~253~255~257 1488|MOD:DIST:253|MOD:DIST:255|NUC:DIST:257|MOD:DESC:261~263~265 1489|NUC:DIST:261 1490|NUC:DIST:273~275~277|MOD:DESC:281~283~285~287~289 1491|NUC:DIST:298 1492|MOD:DESC:302|MOD:DIST:304|NUC:DIST:306|MOD:DIST:308~310 1493|NUC:DIST:310 1494|MOD:DIST:314|MOD:DIST:316|NUC:DIST:318 1495|MOD:DIST:322~324~326|NUC:DIST:328 1496|MOD:DIST:337|NUC:DIST:339 1497|MOD:DIST:343|NUC:DIST:345 1498|NUC:DIST:349 1499|NUC:DIST:359 1500|MOD:DIST:359|MOD:DIST:361|NUC:DIST:363 1501|MOD:DESC:371|NUC:DIST:373 1502|MOD:DIST:379|NUC:DIST:381 1503|MOD:DIST:386|MOD:DIST:388~390~392|MOD:DIST:394|NUC:DIST:396 1504|MOD:DIST:400|NUC:DIST:402|MOD:DIST:404~406 1505|MOD:DIST:415|MOD:DESC:417|NUC:DIST:419 1506|MOD:DIST:423|NUC:DIST:425 1507|NUC:DIST:429 1508|MOD:DIST:437|MOD:DIST:439|NUC:DIST:441|MOD:DIST:443~445~447~449 1509|MOD:DIST:455|NUC:DIST:457|MOD:DIST:459~461 1510|MOD:DIST:466|NUC:DIST:468|MOD:DIST:470 1511|NUC:DIST:474 1512|NUC:DIST:478|MOD:DIST:480~482~484~486 1513|MOD:DIST:492|NUC:DIST:494|MOD:DIST:496~498 1514|NUC:DIST:503 1515|NUC:DIST:507~509 1516|NUC:DIST:513~515~517|MOD:DIST:519~521~523~525 1517|MOD:DIST:530|NUC:DIST:532 1518|MOD:DIST:538|NUC:DIST:540|MOD:DIST:542~544~546~548~550~552~554~556 1519|NUC:DIST:566 1520|MOD:DIST:575|NUC:DIST:577 1521|MOD:DIST:581|NUC:DIST:583 1522|NUC:DIST:587 1523|NUC:DIST:593 1524|MOD:DIST:593|MOD:DIST:595~597~599~601|NUC:DIST:605 1525|NUC:DIST:595~597|MOD:DIST:601 1526|MOD:DIST:609|MOD:DIST:611~613~615|NUC:DIST:617 1527|MOD:DIST:622|NUC:DIST:624 1528|MOD:DESC:634|NUC:DIST:636|MOD:DIST:638~640 1529|NUC:DIST:647 1530|MOD:DIST:651|NUC:DIST:653 1531|MOD:DIST:663|NUC:DIST:665 1532|MOD:DIST:673|MOD:DESC:675|NUC:DIST:677|MOD:DIST:679~681~683 1533|MOD:DIST:681|NUC:DIST:683 1534|MOD:DIST:689|NUC:DIST:691 1535|NUC:DIST:703 1536|NUC:DIST:719~721|MOD:DESC:725~727~729~731~733~735~737~739 1537|NUC:DIST:731~733~735~737~739 1538|NUC:DIST:746 1539|MOD:DIST:750|NUC:DIST:752 1540|MOD:DESC:756|NUC:DIST:758|MOD:DIST:760~762~764 1541|NUC:DIST:771 1542|MOD:DIST:771~773|NUC:DIST:775 1543|NUC:DIST:783 1544|NUC:DIST:790 1545|MOD:DESC:790|MOD:DIST:792|NUC:DIST:794 1546|MOD:DIST:800|MOD:DIST:802|NUC:DIST:804 1547|MOD:DIST:808|MOD:DESC:810~812|NUC:DIST:814 1548|MOD:DIST:819~821|MOD:DIST:823|NUC:DIST:825 1549|MOD:DIST:831|NUC:DIST:833 1550|NUC:DIST:839 1551|NUC:DESC:847|MOD:DIST:849~851~853~855~857~859~861 1552|MOD:DIST:857|MOD:DESC:859|NUC:DIST:861 1553|NUC:DIST:859