James, I'll take a quick stab at your questions:
<<-- the integration of SFAM with IPEC?>>
This has really hurt the company during the last couple of quarters. IPEC, in particular, had a cost structure that was too high, resulting in a large number of layoffs in the combined company. The management did not manage the integration well at all, in my opinion. As more time passes, the personnel who are left would be expected to pull together more successfully.
<<-- what is really going on in the Marketing effort?>>
I've been disappointed by SpeedFam's marketing over the last year. I've heard rumors that a former marketing executive, Ellis Ponton, has returned to the company, and I think that he will influence it positively. Again, I think that more time with the new team working together will be helpful.
<<-- has this company temporarily or permanently blown it?>>
I think they have taken a bad flesh wound--not a fatal wound--but what you ask is indeed the key question. I think that after another quarter of cutting staff, developing products, and getting marketing woes worked out, they will make a recovery during the following several quarters.
<<-- if the latter, why would NVLS still be interested? Is
the actual machinery that good in a competitive sense?>>
NVLS would want primarily their technology and manufacturing. NVLS's superior marketing and corporate systems would help SpeedFam-IPEC a great deal. Due to the cash hoard and depressed stock price, I think that SFAM is still very attractive to potential acquirers, including NVLS.
Mr. Sam |
