KLA-Tencor Corporation (KLAC) Message Board

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Technology Stocks : KLA-Tencor Corporation (KLAC)

KLAC 1,194

-1.1%

Nov 7 9:30 AM EST

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To: olduvai5 who wrote (1527)	10/16/2000 1:43:28 PM
From: The Ox	Read Replies (1) of 1779

Few expect KLAC to continue growing 15% every quarter. There's no question that things are going very well right now and that the market is VERY concerned about the future and the ability for KLAC to sustain the growth they are showing right now. You make a generalization about "all these companies, expense are way up" yet you fail to justify your comments with facts. Margins INCREASED for KLAC when compared to the previous quarter. Even the chump analyst for SSB, who said that he was disappointed with KLAC's margins had to admit that they had a VERY SOLID QUARTER. KLAC just reported 54 cents for the quarter. Annualized, that's 2.16 and at the current price, we have a 15 PE. This is assuming NO growth in earnings going forward which I'm sure NO ONE will agree to. The market is afraid of this sector since they currently believe that the semi industry will collapse in 2002/2003. I think your post was worded poorly, unless you are trying to spread FUD. Gross margins increased to 57.3% during the September quarter from 57.1% in the June quarter. Total fixed costs decreased as a percent of revenue from 33.0% in the June quarter to 32.1%, or $172 million, in the September quarter. The Company increased spending on engineering programs during the quarter to $81 million, compared with $76 million in the June quarter, to support advanced e-beam and optical wafer inspection programs. This doesn't seem to justify your eroding margins statement. I think there are too many people who have been blinded by the run this stock had during 1999 and the 1st quarter of 2000. I doubt the stock will return to the 90 level anytime soon. At the same time, the stock is currently selling at 1997 prices and I believe that the current price is discounted too heavily. There are many different ways to 'value' KLAC and the market is currently pricing in too much doom+gloom, IMO. Good luck with your investment decisions, Michael

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