Semi-Equips - Buy when BLOOD is running in the streets! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!

LRCX 158.70

+1.0%

Dec 5 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Justa Werkenstiff who wrote (3301)	11/5/1997 10:41:00 PM
From: Ian@SI	Read Replies (1) of 10921

some interesting statements in a Lehman report on KLAC at the AEA conference: * At the AEA conference yesterday, the company indicated that current business remains good, and that it anticipates strong Dec. quarter orders. * The number of wafer inspection tools per chip plant continues to rise, as new chip products and process technologies emerge. * Management indicated that business in South Korea remains soft. But South Korean investment outside of Asia remains strong. * Business in the U.S. and Europe is solid, and a recovery in Japan is anticipated. Highlights: While some investors are worried about KLA-Tencor's cautious tone on parts of the Asian market, the outlook remains strong, and we think EPS could exceed expectations in the quarters ahead. High Market Share. KLA-Tencor has 90% of the wafer inspection market, 75% of the reticle inspection market and 50% of the metrology market. But there are still applications it does not address. The company's plan is to increase the range of markets is addresses though internal product development and acquisitions. New technology drives line monitoring. Using memory technology as an example, KLA-Tencor has found that 19-20 systems are needed for a typical 64 Mbit DRAM plant. This is a significant increase over traditional rates of inspection system use per plant. The 256 Mbit DRAM will require as many as 25 per plant. Stepper resurgence will drive demand. This year will have been one in which stepper unit shipments fell sharply, as a result of the chip industry recession. But stepper demand has been picking up, and is expected to rise in 1998. This should create more demand for reticle inspection equipment. [... and some of CYMI's lasers too {VBG}] Cost reduction opportunites. KLA-Tencor's consultants indicate that there may be as much as $30-40 million in procurement cost savings available to the company. Management is cautious in believing this figure, but it does suggest that there is upside margin potential. Europe stronger than normal. A number of multinational semiconductor companies are building facilities there. Orders are now being placed for Hyundai's plant in Scotland. [another clue - any guesses as to who the unnamed Korean DRAM maker in SVGI's recent press release might be] LG is supposed to begin placing equipment orders for its Wales plant late this year or early next year.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next