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Technology Stocks : Mattson Technology
MTSN 3.6000.0%May 12 5:00 PM EST

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To: Philip W. Dunton, Jr who wrote (2051)10/22/1999 7:15:00 PM
From: Ian@SI  Read Replies (1) of 3661
 
Phil,

The only reason for my caution re earnings growth rather than revenue growth is the need to ramp up a sales and marketing force for CVD, RTP and EPI prior to earnings flowing through to the bottom line.

As I believe that this expansion will probably last 3 or more years, I fully support going to every reasonable length to have as many products as possible fully participating in the up leg. Thus, I'm patient with respect to seeing earnings fall to the bottom line for at least another couple quarters.

After that, I'd like to see margins moving up into the 50s and would be ecstatic with the 60s. And I'd expect at least 10-12% of revenues to hit the bottom line.

Most of us have waited a long time to see MTSN succeed. I'd hate to snatch defeat from the jaws of victory just because we wanted earnings immediately.

IMHO,
Ian.
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