I went. Seemed lower key than the past two years (but then so is this board).
A few notes:
*** they expect 50-60% revenue growth in 2000 over 1999.
*** R&D is a major focus. They are spending more on it in absolute terms, but a little less in terms of % of revenue. Some of the R&D they are working on may not actually result in a product for 10 years.
*** Service and Spare Parts are 18% of revenue.
*** Cymer is picking the pace at which their own products become obsolete. In other words, they are the major innovator in the industry, they are the ones coming out with new products that make their own products outdated.
*** They have a 93% market share of systems installed at chipmakers. In Japan, home of the major competition, they have 80% share. It will be almost impossible to achieve 100% market share, as most customers want to have a second source as a backup.
*** They had a 43% gross margin in 00 Q1. Their target is 48-50%.
*** Business is very good, and they expect it to remain so for at least another year or so, with a possible cyclical slowdown in the sector in '02.
*** A few years ago, PCs were the major force behind the drive to smaller chips; now wireless and other applications are the major force.
*** They went over the new org chart. Akins will mainly be out selling the Cymer story to the investment world, etc.
*** They have very stong finacials, with the only major debt being the convertibles which will be callable in August.
*** They are not happy with the current stock price; but all they can do is to continue to run a great business and to get the word out to Wall street as best as possible.
My opinion: I am happy with the way this company is progressing. They are no longer an exiting startup with awesome future potential; the potential has been met and now they are the current gorilla in their niche, are making money, and will continue to be dominant in at least the near and mid term future.
Not as exiting as the recent past, but more stable and probably a better investment, IMHO. I will probably buy a few more shares tomorrow.
Best Regards, Steve |
