Ultratech Stepper Message Board

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Technology Stocks : Ultratech Stepper

UTEK 30.23

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Jun 5 5:00 PM EST

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To: Ritz who wrote (522)	4/24/1997 9:03:00 AM
From: Andrew Vance	of 3696

Four problems with your statements, in my mind. The problems do not make your insight incorrect by any means. 1. UTEK and Mircrascans are not exactly competitors for steppers but they do compete in the exposure tools markets. I am not sure where the Perkin Elmer projection scanners fit in these days. SVGI may be interested in UTEK's EUV program but probably not the 0.65u and above steppers. Remember, mix-and-match has not been embraced as much as it should. 2. SVGI is not as rich as it should be due to the royalty obligation settlement they just completed with IBM. This looks as if SVGI was clearing the decks for sale of wither itself or its SVGL subsidiary. Remember that SVGI gave IBM equipment, stock, and cash to regain control of the 6% stake IBM had in SVGL. 3. Big Bad AMAT still wants to be ruler of the semi-universe. They still need a lithography tool supplier under its control. The SVGI/UTEK situtation would eoither eliminate exposrue tools from their portfolio or force them to take over the combined UTEK/SVGI entity. 4. When the Micrascan business takes off, big time, SVGI will not have enough manufacturing capacity. SVGI would be better off spending their money to expand manufacturing capacity for the Micrascan which commands a much higher price tag. It may not make sense to own UTEK which is billed as "twice the throughput and half the cost". This is what I like about your comment, though. If a takeover were to occur, Schram would be considered excess baggage in a merger. Art would be the right person to head the combined company much like Bagley for the ONTK/LRCX merger. It would certainly aggravate AMAT and the combined companies would be harder to take over or command an ungodly premium. Don't get me wrong. I would love to see the SVGI/UTEK merger take place. I have shares and options in both. IT would be a double win for me. So, in effect, I hope you are right. Andrew

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