TER's IR response:will fare well in the middle to long term
by: OhRandyOne,10/4/2000
messages.yahoo.com
messages.yahoo.com
This is the response that I recieved from TER a few minutes ago, their words, not mine.
R., I understand your frustration, but I described our program in my last
note. I am sorry that you feel that it's not an active program, but I do
not agree with you. Let me reiterate some of the things that we are doing:
1. We are speaking are three tech conferences a month from September
through the end of the year (including two in one week, two weeks ago).
2.We are flooding the press with information on new customer wins, new
products and other company good news (15 releases in the last two days).
3. We will shortly be announcing a new advertising campaign.
4. We are aggressively introducing the largest number of new products
in one year in our history this year, half of which already have multiple
customers who have ordered multiple systems.
5.We are participating in a record number of trade shows this fall,
world-wide (Taiwan three weeks ago, Anaheim last week, Atlantic City this
week, Tokyo next month, etc.), and are publicizing our new offerings at
these shows, as well as meeting with the press to get even more coverage.
6. We are and we have been buying back our stock and have previously
announced this, as part of a continuing program. Right now, we are
prohibited from buying our stock (see below). In fact, however, there is
no way that we could buy back enough to make a big difference in this
market.
You asked why we didn't respond to the Prudential analyst's report on an
upcoming bookings shortfall for us. There were two reasons. First, the
fact that about 50% of our orders come in at the end of the quarter means
that we don't know in mid-September what our orders will be at the end of
the month. Therefore, he may be correct on his forecast. Second, and more
important, is that fact that his report came out after we went into our
"quiet period". This, as you probably know, is a four week period
extending for one month before your earnings report (ours is October 17th)
during which the SEC mandates that companies cannot make any comments about
their performance in the current quarter (and also, by the way, during
which we cannot buy or sell any stock).
Despite what I believe is an active program, the problems impacting our
stock go well beyond Teradyne. There is no "manipulation" of our stock
that I know of. If you have any specifics here, please let me know. I see
us as part of an industry that it really out of favor right now and history
shows that it takes time for the sentiment to change.
I know that you feel that Teradyne is being treated much worse than any
other stock at this point, but my data doesn't show that. Here is some
data as of today at 3:30 p.m. on companies in our industry that I track and
their stock price today, as a percentage of their all time high (which was
achieved, in all cases, early this year).
COMPANY SYMBOL %
Teradyne TER 29
Applied Materials AMAT 49
Credence Systems CMOS 32
Cohu COHU 26
Electroglas EGLS 36
KLA-Tencor KLAC 42
Kulicke & Soffa KLIC 32
Lam Research LRCX 42
LTX LTXX 33
Novellus Systems NVLS 69
PRI Automation PRIA 19
Although I certainly can't argue that we are the least affected by the
downturn in prices, it's also true that we are not at the lowest
percentage. We are in the lower range with other "back-end" companies like
CMOS, LTXX and KLIC, at around 30% of our high. Therefore, I don't think
that our stock is uniquely being manipulated.
R., we are doing everything that we can to put the best possible face on
our current and future business situation. I wish that I had a way to
change the perception in the investor community that the industry was in
trouble, but I don't -- beyond what we are already doing. We have,
unfortunately, seen this type of volatility before -- it's not unique to
the current market. We are well positioned to grow within our industry and
the industry enables semiconductor technology, world-wide. I am convinced
that we will fare well in the middle to long term.
Let me know if there is more that I answer for you.
Regards |
