Helix Technology, a cold play on semiconductor equipment Message Board

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Technology Stocks : Helix Technology, a cold play on semiconductor equipment

HELX 36.78

+3.3%

Nov 21 4:00 PM EST

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To: PuddleGlum who started this subject	7/28/2003 1:53:32 AM
From: mopgcw	Read Replies (1) of 1227

CC Summary: Slightly improved sequential revs; flat bottom line expected 1c improvement but product mix impacted bottom line Did achieve + op cf in the quarter sales to ion implant did weaken as expected. did not expect strength in older legacy 300mm cti product that is lower margined. in addition had start-up costs associated with the move to on-board IS. they do not expect this confluence to continue overall, still expect to convert more than 50c of incremental sales $ to incremental op margin notable difference this year, @ semicon west, their largest oem featured helix OB-IS on their tool Global services -- signing new true-blue contracts and expanding existing ones. Met w/ their largest IDM to move true-blue across all their fabs sales up 4% from q1; 15% lower than last yr orders up 5.5% from q1 btb slighlty > 1.0 semis = 65% of sales cti 80%; gp 20% global support 37% of revs compared to 33% oem 50% of revs unchanged 26% vs 17% to largest client backlog of $6.5 million vs 6.2 513 employees/temps; < 500 fte GM of 30.7% down due to prod mix/start-up costs. expect this to be smaller issue in q3 and eliminated at the beginning of q4 $25mm in R&D SGA down to 7.6mm 67.9mm in cash decrease due to restructuring and divvy recv decreased and DSO of 62 days (vs 66) better but still seeing unusual skew of orders a result of plant shutdowns. should return to more normal levels. no suspect accts inventories decrease $1mm to $26mm inv turns of 3 vs 2.7 in q1 oem shutdowns continue, but gradual improvement they expect to continue in q3. modets 5-10% rev growth in q3 continue to expect + cf from ops in q3; so bottom line growth as well. q4 still unsure. as of today, things look reasonably good for second half based on semicon west and recent announcements of fab usage. all signals from customers are positive at the moment. continued costs controls, so if the recovery does not improve, can manage the margins. CIBC/Needham/Morgan stanley/ag edwards/arnett/adams harkness covered call/ Historically helx has been a capacity play, but new prods/tech are becoming more important over time. still targeting 50% of revs from support long-term, would not be surprised if it hits over 40% coming up. micron-ion gaining in market, but not affecting the product mix issue -- that was isolated to ob-is. the clients kept to legacy prod -- though this was only a couple $100k so not an extreme impact. g-p is gaining ground in the semis market as well as acceptance in the analytical instr. mkt. b-e levels about $27 mm. mks released a new guage but helx had no comment -- up to customers mems technology will be going forward -- all the players in the space are pursuing - incl helx. some applications/prod offerings where it does at quite a bit and should see prod flow going forward. has been slow to find applications in this area given volume/unit costs, but this is changing. prod mix will be comparable to past samsung/dram bright spots going forward continue to sell all prods incl legacy 300mm, but anticipate margins to improve on transition to new prods 7% growth in overseas jv reflecting strength in flat panels.

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