Trikon Technologies - TRKN Message Board

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Technology Stocks : Trikon Technologies - TRKN

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To: Robert Henry who wrote (25)	4/25/1997 12:05:00 AM
From: davesd	of 926

Robert, I listened to the conf call...the following are some of the highlights. They talked to the banks last week and they waived the covenants that were violated due to loss in Q1, and they have assurances that the credit will still be available....the rate will go up slightly. The cash burn rate next quarter is expected to be $4 to $5 mill. This quarter they used about $12.5mill of cash out of which only $3 mill was for operations. The other $9mill was for some of the remaining merger costs. Inventory ..$17mill for etch and $32mill for deposition stuff. They only shipped 4 units last quarter....2 PVD and 2 etch. On the bright side.. They have already shipped 3 three units this quarter for $7mill. They are going to ship a flowfill unit in May and are confident that they will get 2 more orders this quarter. They have been overwhelmed by wafer testing activity for flowfill. They won 3 runoffs for oxide etch. They expect to have about $21-$23 mill in revs this quarter.....based on their estimates they needs between $23 to $25mill to breakeven. They are now expecting to be profitable in Q3. They are also in negotiation for a significant production order with a major manufacture.... As far as the analysts....they did seem fairly concerened by the cash situation and the burn rate. There were also questions as to when they see multiple system orders coming in. The answers for the money issues seemed reasonable, but I felt that the response to multiple system orders didn't quite satisfy the analysts (I could be wrong). I felt that there was enough info to stop the stock slid but not enough to make it pop up. On the balance sheet.....In my opinion it looked weak..TRKN needs to come close to breakeven in the next 2Q as a minimum, or they could be in trouble as far as money is concerened. Management did not seem to concerned about the cash position...time will tell. And tomorrow will tell the stock price story...... dave

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