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Technology Stocks : Cymer (CYMI)

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To: D.J.Smyth who wrote (6024)10/23/1997 5:11:00 PM
From: BillyG   of 25960
 
I would like to see a cost allocation between these two expenses - (1) adding manufacturing capacity, and (2) a "reserve" to cover cost under their "CIP". What the he_ _ is the "CIP"? Maybe that's the program to fine-tune the lasers in the field . . . I respect CYMI for placing these funds in reserve as an up-front charge rather than dragging them out.

Gross margin on product sales for the third quarter of 1997 was 36 percent,
compared with 38 percent in the second quarter and the first nine months of
1997. Margins narrowed in the third quarter as a result of one-time charges
associated with bringing the Company's new manufacturing facility more fully
on line and charges to establish a reserve to cover additional costs of
Cymer's previously announced Continuous Improvement Program (CIP).
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