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Phil,
Thanks for the Needham / DLJ confirmation.
Implies that we may see good things from both Soundview and H&Q this year, perhaps soon. :-)
Actually, all the analysts showed some degree of enthusiasm re MTSN's results with the "Great Quarter, guys" or "Congratulations" type of comments. I believe that both Soundview and H&Q were most exuberant in their praise.
The prior estimate before the 2¢ loss was a 4¢ loss.
MTSN's estimates have been steadily going up and it beat the latest consensus.
Finally, we've had the discussion at length earlier this year. MTSN could easily manage the income statement and show a whopping profit. Rather Brad has managed the company to improve it's long term income and overall business success. R&D expenses continue to go up. ...and MTSN's team continues to produce results.
Being the first equipment company to successfully have its 200mm-300mm tool in production is astonishing for a microcap; and, IMO, an extraordinarily valuable achievement. Since MTSN announced 2 CVD orders of greater than $10M for its bridge tool, the rest of the competition came out with Press Releases at Semicon West.
MTSN has an installed production product. AMAT, NVLS, etc, caught with their pants down, have a Press Release about a future intent.
What is that saying about Imitation Being the Sincerest Form of Flattery?
Well, I think the sector leaders just paid MTSN a very sincere compliment.
So MTSN has chosen to ensure that it has leading edge, innovative, products which improve its customers' efficiency and effectiveness.
And this development effort has cost the company some flow through to the bottom line. And now the ramp up of manufacturing is raising top line substantially, but during the ramp up not helping the bottom line as much, yet. Well, guess what, the same phenomenon occurs for any rapidly growing company.
Personally, I'm quite pleased that MTSN continues to grow the business rather than focussing on the current quarter's bottom line. It's far too small to even remotely consider being satisfied with its progress to date.
CVD alone will likely have a higher revenue during 1999 than any prior year's gross revenues. Yet, that market share in the CVD sector is less than 0.1%.
The future's so bright I need to wear shades!.
BWDIK,
Ian. |
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