Tom,
It is my understanding that Veeco is the reason that RDRT is getting into this business. They suggested that their equipment could do "double duty", and taught (or are teaching) RDRT how to do it. A 'win-win' situation, since if it takes off, Veeco gets a much healthier customer.
Whether that understanding is true or not, well, your guess is as good as mine.
As for RDRT's run--as least some of it has to be the infusion of cash from Tyco. RDRT's balance sheet isn't as bad as APM's was at its demise, but it isn't much better. The cash suggests that there may be more if their latest venture is a success. It also gives them a little breathing room while their 20gig programs take off.
Personally, I still don't trust RDRT's management. And TYC is run by sharks. If it is in their interest, they will cut RDRT off at the knees. Or, alternatively, simply take control of the company if it is a success. I haven't seen the terms of the financing. Is it convertible into stock? Or just an outright loan? Or a straight equity deal? If the latter, how much do they get for their $15m?
Anyway, it's a home run for those who got in at the lows. It may even be a home run from here. But I'll let others hit it.
Sam |
